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TVS Logistics has acquired the US-based Wainwright Industries to add capabilities such as ‘cross docking’ – a document control and traceability system – and sub-assembly for manufacturers. This is the second acquisition by TVS Logistics in the US after Mesco in 2011.
The company will initially pay Rs 25 crore to the 65-year-old family-owned American company and another Rs 25 crore in the next two years based on certain performance metrics, R. Dinesh, Managing Director, TVS Logistics, told newspersons.
Through the acquisition, TVS Logistics will offer end-to-end supply chain to a vendor in India supplying parts to customers in the US. For example, TVS can pick up components right at a production plant in Gummidipoondi near Chennai, take the consignment to the port, do various clearances and ship it to the US. At the receiving port, the company will do necessary documentation for import clearances and move the consignment by sea or land to a plant located anywhere in the US, said Dinesh.
“A client will get 10-12 per cent saving using our service. The client need not deal with multiple vendors. We can go to the customer and offer a complete outsourcing model,” Dinesh said.
Wainwright, which employs around 300, offers third party logistics services to 12-13 clients, including General Motors, said its president David Robbins.
He will continue to manage the business in the US. It reported revenues of $20 million , he said.
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