TVS Logistics Services Ltd will bring to the domestic market expertise available with it abroad, to offer integrated solutions to its customers.
R Dinesh, Managing Director, TVS LSL, said the company’s global acquisitions were aimed at gaining a range of capabilities in logistics and warehousing solutions, which will now be brought together in the Indian market. Cross deployment, integration and a new team structure will more than double its India business over the next three years, he said.
The domestic market, which will generate about ₹2,700 crore this year, will in three years grow to ₹7,000 crore. The billion-dollar multinational player in logistics and warehousing services will also be a billion-dollar player in India alone. The company will also grow globally, Dinesh said.
The streamlining of logistics and supply chain following the implementation of the Goods and Services Tax from July has made this kind of growth possible in the domestic market, he added.
TVS LSL has created new roles for integrated business heads for four major regions with expertise in areas such as automobile, technology and engineering. It caters to a range of businesses including FMCG, retail and e-commerce, telecom, and petrochemicals.
Centres of excellenceThe company will also create four centres of excellence in its core business areas. In India, one will come up in Madurai, for IT relating to logistics and warehousing; in US for innovation to work on Internet of Things, RFID (radio-frequency identification) and associated areas; in UK for supply chain models; and in Singapore for freight forwarding.
S Ravichandran, who has been elevated to Deputy Managing Director, TVS LSL, said the integrated offering will give the company ability to give its clients value-added services — spanning demand forecast to product deliver.
Illustrating the cross deployment of products and services in India, he said the use of the firm’s Montara packaging systems had helped an engine manufacturer cut its packaging cost by about one-third and helped transport twice as many engines in every truck.
R Shankar, CEO, who will oversee Indian operations, said that five years ago TVS LSL was a South-centric company with more than 90 per cent of its business from the automotive sector. Since then it has built a strong multinational presence and is present in diverse sectors.