Private equity firm Gateway Partners has committed to acquire a minority stake in TVS Supply Chain Solutions (TVS SCS), an end-to-end Supply Chain Management Services company and part of the $8.5 billion TVS group, for $100 million. The deal is the second-largest private equity investment in TVS SCS after North America's major pension fund manager CDPQ, which invested $155 million in TVS SCS in 2016.
The investment involves both primary portion and secondary element, the company said in an announcement today. According to industry sources, the investor is taking around 15 per cent stake, which values the company at a billion-dollar.
R Dinesh, managing director, TVS SCS, said, “We are glad to have Gateway Partners as a strategic investor. TVS SCS has been growing significantly both in domestic and international operations thanks to our customer focused approach and digital capabilities that we acquired over the years." He also added that Gateway as an investment partner will add value and help TVS SCS to expand its footprint and grow.
Anand Kumar, co-founder and Partner, Gateway Partners, said, “We look forward to working closely with TVS SCS and supporting its next stage of growth. As India’s largest supply chain company with a global footprint, it is well-positioned to continue providing end-to-end solutions for international and Indian customers." The company can leverage the growing global demand for value-added supply chain management services, he added.
TVS SCS is one of the largest companies in the third-party logistics and supply chain sector in India with niche digital capabilities and footprint across Europe, UK, Asia, and USA. The company is adopting emerging technologies such as Machine Learning, Artificial Intelligence, Internet of Things (IoT), Vision Technology, amongst others to develop new mobility solutions for its customers.