 "Ravi Viswanathan, MD, TVS Supply Chain Solutions")
Having recently entered the US market, TVS Supply Chain Solutions is now focused on securing major deals there. The company is also restructuring its global operations to stay agile and growth-oriented amid a volatile macro environment. Managing Director Ravi Viswanathan, in conversation with Sohini Das in Mumbai, outlines his plans. Edited excerpts:
You recently entered the US market. What are your plans there, and is a tariff-linked slowdown affecting business?
We’ve signed four or five major deals in the US in the industrial space, mostly with manufacturing companies. Of our major segments — Integrated Supply Chain Solutions (ISCS) and Global Forwarding Solutions — the latter is definitely feeling the impact of the macro environment and tariffs.
Exports from India to the US, for instance, have come off the cliff. We’re waiting for a trade deal — hopefully in the next few weeks. We’re confident it should happen this quarter (Q3), which means by the end of the fourth quarter (Q4) we should see some normalcy returning. But right now, pricing on the India–US lane is under severe pressure.
Forwarding is tightly linked to global container movements; if even one lane gets choked, the whole cycle breaks. I expect normalcy to return in about a quarter or a quarter and a half.
The ISCS business — around 90 per cent of our US operations — works with large American manufacturers: warehousing, kitting, sourcing, sub-assemblies, and just-in-time deliveries. That’s the bulk of it. The US now contributes 10-12 per cent of consolidated revenue, but it should grow faster because of the smaller base. In 2026-27 (FY27), we expect it to be 13-14 per cent of the top line.
You are on track to cross ₹10,000 crore in top line this financial year. Given the geopolitical environment, what’s your revenue outlook for next year?
We should be close to 10 per cent year-on-year revenue growth in 2025-26, so we should be on the other side of ₹11,000 crore. That keeps us on track to touch ₹15,000 crore in the next two to three years. Our aspiration is a 15 per cent growth rate, and by FY27, we should be in the early-teens zone.
How are you navigating geopolitical volatility, which has disrupted supply chains over the past few years?
About three years ago, we operated as a federated structure: the US, two European operations (UK and Rest of Europe), India, and freight headquartered in Asia-Pacific. Multiple product lines, multiple fronts.
We launched Project One to unify capabilities and present one face to the customer — more agile and more customer-centric. We merged all of Europe, reduced divisions, and added client partners. The goal is to mine existing customers and sell more capabilities to them.
Three years ago, we had 53 Fortune 500 clients; last year, we closed with 91. These companies consume far more services than mid-sized local firms.
We also now serve clients across multiple geographies. That number has grown from two to three customers to 10-15 who work with us across regions. We combined Europe and US operations under one leadership, enabling cross-learning.
Our portfolio spans in-plant warehouses, production supply chains, aftermarket, business-to-business distribution, and freight. That diversification helps us ride out volatility. We didn’t go negative even during severe macro headwinds over the past three to four years, especially the past six quarters.
You’re targeting 4 per cent profit before tax (PBT) by FY27. What’s driving margin improvement?
Forwarding — about 25 per cent of the business — remains volatile. But the other 75 per cent (ISCS) is showing strength: ISCS earnings before interest, tax, depreciation, and amortisation grew 16 per cent year-on-year with double-digit revenue growth. Margins are holding up well.
We’re targeting 4 per cent PBT by FY27; we’re currently at 1.2 per cent. We have clear visibility because we’re taking out about ₹120 crore of cost from European operations. We’re rightsizing after merging European units and right-shoring processes to India. This gives us ₹110-120 crore in annualised savings. About ₹50 crore will flow in Q3–Q4 this year; the full benefit comes in FY27. This improves cash, liquidity, and balance sheet strength.
What will India’s share be when you hit ₹15,000 crore in top line in three years? What are your growth drivers?
India currently contributes 30-32 per cent of consolidated revenue, and at steady state, it should touch 35 per cent. We’re seeing good signs — a couple of large deals are likely to convert this quarter and add momentum.
We also exited unprofitable verticals, including a large telecommunications-infrastructure division that was dragging margins. Going forward, India should grow 4-5 per cent linearly, taking its share beyond 30 per cent towards 35 per cent.
There are several promising sectors. We’re strong in retail; we work with almost every major player in solar energy and are betting on renewables. We also work with most wind energy manufacturers. We had a sizeable medical equipment operations base in Karnataka servicing a set of hospitals.
We made an interesting acquisition — Rico Logistics in the UK in 2012 — which helps us service large financial technology companies managing point-of-sale and automated teller machines globally.
What emerging trends do you see in the sector globally and in India next year?
Globally, the clear trend is towards outsourcing. Companies want us to manage the entire supply chain — sourcing, procurement, sub-assembly — not piecemeal.
India isn’t there yet. During the initial public offering, we said we’d champion large-scale outsourcing. It won’t shift in the next eight quarters, but in the medium term, it’s inevitable. When it does, the opportunity for growth in India is enormous.
Is China+1 a major opportunity for you?
Absolutely. Because companies are derisking supply chains, China+1 is a major opportunity. Tariffs may not last, but companies planning to come to India haven’t changed their plans — they may delay by a quarter, but that’s it.
We still believe India’s China+1 opportunity is big. Many of the customers we serve outside India will come to India or scale here. India will also become a major sourcing partner for the West as derisking takes hold. Today, bulk sourcing for US and UK clients comes from China; that will shift.
