Tuesday, April 15, 2008

Industry News| Goldman Sachs invests Rs 100 cr in TVS Logistics

GLOBAL investment banking major Goldman Sachs has invested nearly Rs 100 crore for a double-digit ‘significant minority stake’ in TVS Logistics. This is first ever private equity investment in the $5-billion turnover, family-owned TVS group.
TVS entered the logistics business in 1997 and formed TVSL as a susbidiary in 2004 with a paid-up capital of Rs 12 crore. The PE money will boost its net worth.
The company is upbeat on growing at 35-40% a year and achieving a turnover of Rs 1,000 crore by 2010 from Rs 338 crore in 2007-08 and increasing employee strength to 5,000 from 3,000 at present.
Of the Rs 338 crore, domestic business accounted for Rs 240 crore (with TVS group accounting for 20% and the rest by non-group companies), and global business claimed a share of Rs 100 crore (with 60% from the group and rest from nongroup companies).

The company will leverage the contact and reach of Goldman Sachs to further accelerate growth, he said, noting that the group had pioneered and identified logistics as sunrise industry 10 years ago.

TVSL recently picked up 50% stake in Greenarches (based in Mumbai) and renamed it as TVS Infrastructure. This venture will create logistics parks and has proposed to invest nearly Rs 500 crore by itself and through SPVs for building warehousing and other infrastruture.

The company already owns 20 acre in Pune and 10 acre in Chennai and has plans of building a land bank of around 200 acre in automotive centres like Hosur, Gurgaon, Halol, Lucknow, Singur, Uttranchal and Indore. TVSL also holds 75% stake in the newly formed TVS Dynamic Global Freight Services which will focus on the auto and non-auto segments and is expected to clock a turnover of Rs 250 crore in three years.

Source- Economic Times, Chennai

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