indo-asian news service, Chennai, May 26: Third party logistics player TVS Logistics Services Ltd Tuesday said it has acquired Tata group’s Drive India Enterprise Solutions Ltd (DIESL) while Tata Opportunities Fund will take minority stake in the TVS company while funding the acquisition.
The acquisition of DIESL, an equal joint venture between Tata Industries and Tata International, is for an undisclosed sum. “The acquisition will result in the company’s turnover touching around Rs4,000cr, with the company also becoming an end-to-end solutions provider for auto and non-automotive sectors,” TVS Logistics managing director R.Dinesh told reporters here.
TVS Logistics has a turnover of around Rs3,000cr and DIESL’s turnover for 2014-15 was Rs950cr. Dinesh said Tata Opportunities Fund – a private equity fund of the Tata group – will invest Rs250cr in TVS Logistics for a minority stake.
He said with DIESL’s acquisition, TVS Logistics gets a diversified portfolio of consumer durables, fast moving consumer goods (FMCG), retail, technology, telecommunications and others. The TATA group company also brings to TVS group around seven million sq.ft of warehouse space and 3,500 employees.
According to Dinesh, following the acquisition, the ratio of auto and non-auto business for TVS Logistics will be 45:55.
He said TVS Logistics was looking at expanding its non-auto business in India in line with its global operations.
Padmanabh Singha, managing partner at Tata Opportunities Fund, said the fund is open to investing more in the TVS Logistics when needed and exit when the numbers are great.