TVS Logistics Services Ltd (TVSLSL) has picked up 51 per cent stake in White Data Systems India Pvt Ltd (WDSI), a subsidiary of the Rs 329-billion Murugappa Group's financial services firm Cholamandalam Investment and Finance Company Ltd (Chola). TVSLSL would invest around Rs 422 million for 51 per cent equity stake directly in WDSI according to the terms of the investment agreement.
With this, TVSLSL, part of the $7-billion TVS Group, will have majority stake in the start-up company, which provides freight data solutions focusing on trucks and commercial vehicles. WDSI, founded in March 2015, runs its freight solutions under the brand iLoads.
"Upon TVSLSL completing its investment in WDSI, consequently the company's holding in WDSI will be reduced to 31 per cent from the current 63 per cent and WDSI will cease to be a subsidiary of the company," Chola informed the exchanges.
The revenue from WDSI to Chola during the last financial year was around Rs 491 million, which was less than one per cent of the consolidated financials of the financial services arm. Chola had earlier launched a trip loan business to leverage the potential of WDSI.
WDSI has additional operational facilities in Delhi, Mumbai, Hyderabad, Kochi, Bengaluru and Coimbatore, and currently provides pan-India reach for transporting goods from these hubs, says the company.
TVSLSL is a top third-party logistics company in the country with integrated supply chain solutions across the world, directly or through joint ventures and subsidiaries. Its services include contract logistics, warehousing, transportation, freight forwarding, packaging, design and solutions, among others.