Buoyant by the opportunities post-GST implementation, TVS Logistics Services, the Indian multinational 3PL logistics service provider operates in nearly 14 countries globally. The company has announced its aggressive growth plans and targeting $1 billion in revenues over the next 3 years from the Indian markets.
But its India business will not contribute more than 40 percent as the company’s overseas business will continue to grow. Going forward TVS Logistics, expects the overseas business to grow organically by 10-15 percent while the India business is likely to grow by 35-40 percent.
Speaking of the opportunities in Indian, R Dinesh, MD, TVS Logistics Services said, “With our global revenues already crossing the $1 billion mark our focus now is firmly on India operation. We have been growing by CAGR of 30 percent over the last five years and aims higher growth over the next three years to achieve our target of $1 billion revenues from our local operations.” He further added, “Due to GST, we now can become supply chain partner to our customers. With many capabilities available to us globally which can bring them to India to leverage our domestic business.”
Automotive industry currently accounts for 35 percent to the total business of TVS Logistics. Going forward, the company says the sectors will grow significantly and will be one of the core focus areas and it will continue to contribute close to 30-35 percent in its overall business.
R Shankar, CEO TVS Logistics Services who has been given the mandate of the overall India business said, “We are totally geared up for this ambitious growth target. We will continue to differentiate and bring in operational synergies to provide end-to-end solutions and value added services to our customers in India.”
Speaking to Autocar Professional, Shankar said, “We are working with both automotive and non-automotive manufacturers to partner with them to improve their supply chain management. Right from a supplier to consumption point we will provide them end to end solution to their inbound and outbound supply chain. TVS Logistic is uniquely positioned to handle both the parts of the supply chain.”
“Auto sector has been a big basket of our business and have been growing all these years. We work with 14 passenger car manufacturers, five two wheeler OEMs, seven commercial vehicle manufacturers and five tractor OEMs, touching almost the entire automotive industry, besides this large part of our business comes from Tier-1 supplier. We are well spread across 65 locations in the country covering the entire market. We also have 10 million square feet of warehousing space to serve our customer better.”
Five years ago over 90 percent of the company’s revenues were coming from automotive sectors. However, the company has well diversified into 10 different industries including FMCG, FMCD, Technology, Telecom, Petrochemical and the share of the automotive business has come down to 35 percent.
Centre of Excellence
TVS Logistics is developing four Centre of Excellence (COE) across the globe including in the UK, USA, Singapore and in India. The India COE which is located in Madurai opened in April earlier this year. The centre is aiming to build new age apps and solutions using Indian ingenuity with the global know-how for ‘track & trace’ that will provide intelligent communication services to clients. The USA COE that opened recently works on production & inbound supply chain. Along with the UK and Singapore COE which will work on contract logistics and freight forwarding respectively will be opened during the current fiscal year.
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