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TVS Supply Chain Solutions (TVS SCS), a global supply chain solutions company, is getting ready to hit the market with an IPO as the company plans to more than double revenue to nearly $2.5 billion by 2025. Sources in the know said no decision has been taken on the size of the IPO though there is speculation that it could be over ₹3,000 crore.
The company will take a call on the IPO after the final scheme of arrangements among the TVS group companies that is likely to come up before the NCLT in the first week of February. It has put in place all the necessary requirements, including governance with respect to the IPO, sources said.
Soon to crack top 50
With revenues of $1 billion, the company has been growing at 36 per cent CAGR for the last 15 years, and expects better growth in the coming years.
The company has multi-sectoral clientele ranging from consumer durable, telecom, electronics and automobile with around 57 per cent of business from non-auto clients and 95 per cent business from non-TVS group companies.
The Chennai-based company, which pioneered the concept of third-party logistics in India in 1995, is now an end-to-end supply chain solutions provider with over 17,000 employees and present across four continents and in over 20 countries.
With revenue of around $2.5 billion and $100 million in profitability in 2025, TVS SCS will be among the top 50 logistics companies globally.
Faster growth
Sources said the acquisition of various companies since 2005 has helped in faster growth. It successfully integrated 65 companies. The acquisitions of companies were for new capabilities / geographical expansion and for customers.
The latest acquisition was in November when TVS SCS acquired a 69.1 per cent controlling stake in Bengaluru-based FIT 3PL Warehousing Private Limited (FIT 3PL), an end-to-end contract logistics services provider. It strengthened the existing pan-India presence of TVS SCS through an addition of over 1.5 mn sq. ft of warehouse space.
In October, TVS SCS raised ₹590 crore from a fund managed by Exor, the Europe-based leading diversified holding company controlled by the Agnelli family to grow its business, further strengthen its technological capability, and for other transformational initiatives.
The current investors in the company are Tata Opportunities Fund, Mitsubishi Corporation, Gateway Partners and Exor.
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