You are here: Home » Companies » News
Business Standard

Mitsubishi Corp picks minority stake in TVS SCS for undisclosed amount

Mitsubishi to acquire the stake from Tata Opportunities Fund which will make a partial exit

Mitsubishi Corp | TVS Group

T E Narasimhan  |  Chennai 

TVS SCS' spare parts warehouse in Pune
TVS SCS' spare parts warehouse in Pune

TVS Supply Chain Solutions Limited (TVS SCS), an integrated Supply Chain Management Services company and part of the $8.5 billion TVS group, today announced that Mitsubishi Corporation (MC), Japan, has invested in TVS SCS for a minority stake for an undisclosed amount.

MC’s investment is through a secondary market transaction which will allow an existing investor - Tata Opportunities Fund - to secure a partial exit. The Tata Opportunities Fund (TOF) initially came on board in 2015 as a minority partner and has invested across multiple rounds in TVS SCS to fund acquisitions and to support TVS SCS’ future growth. TOF, however, will continue to hold a residual stake and remains a key strategic investment partner for TVS SCS.

R. Dinesh, Managing Director, TVS Supply Chain Solutions, TVS SCS has successfully pivoted into new segments and addressed opportunities arising out of Covid-19 through customer-focused offerings and digital capabilities. "Our innovative solutions and differentiated approach make TVS SCS a preferred supply chain partner to our clients. Through our partnership with Mitsubishi Corporation, we aim to accelerate our growth in the years to come.”

For TVS SCS, this investment will further strengthen its leadership position, to a much larger customer footprint, by extending its complete suite of digital supply chain solutions and value-added services.

He said, TVS SCS’ key strength has been its ability to provide globally integrated solutions by leveraging its digital capabilities together with its international footprint across UK/Europe, Asia and the USA. The company adopts emerging technologies such as machine learning, artificial intelligence, internet of things (IoT), vision technology, amongst others to develop new mobility solutions for its customers. Its strategy of seamlessly integrating its unique digital capabilities with its wide physical network helps drive operational efficiencies and cost optimisation for its clients.

TVS SCS was started as a business unit of T V Sundram Iyengar & Sons Ltd in 1995 and was later established as a separate company - TVS Logistics Services Limited (TVS LSL), in December 2004. The company rebranded itself as TVS Supply Chain Solutions in 2019.

The company got presence in markets such as the UK, the USA, Germany, Spain, Singapore, Australia and other territories, TVS Supply Chain Solutions has been able to deliver value to its customers in every country of its presence, through continuous innovation, differentiation and quality of service.

With about 18,000 plus skilled workforce, TVS SCS manages over 20 million square feet of warehouse space in India.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, November 10 2020. 13:43 IST