TVS Supply Chain Solutions Ltd, the logistics arm of the TVS Group, has raised Rs 590 crore (around $80 million) from a fund managed by Exor.
The company said it will use the funds to grow its business and further strengthen its technology capability. Earlier this year, Exor, through another fund, had invested in Ki Mobility Solutions – a subsidiary of TVS Automobile Solutions.
“Supply chain as a sector in India is expected to grow in double digits and TVS Supply will leverage its tech-enabled global solutions to outgrow the industry. I am confident that this investment will significantly add value to our business and provide the necessary impetus to achieve our growth potential,” R Dinesh, managing director at TVS Supply, said.
TVS Supply was started as a business unit of TV Sundram Iyengar & Sons Ltd in 1995 and was established as a separate company, TVS Logistics Services Ltd, in December 2004. The company was renamed TVS Supply in 2019.
Rothschild & Co partnered with TVS Supply on this transaction in line with the strategic vision of the organisation. Khaitan & Co and Nishith Desai Associates acted as counsel to TVS Supply and Exor, respectively, for this deal.
Last month, the alternative investment arm of Kotak Investment Advisors Ltd (KIAL), Kotak Special Situations Fund (KSSF), invested Rs 1,000 crore ($130 million) in TVS Supply.
In August, VCCircle reported that TVS Supply’s biggest private equity backer, Caisse de dépôt et placement du Québec or CDPQ, was in talks to exit the logistics firm.
The logistics firm has attracted a slew of investors. In November 2020, Japan’s Mitsubishi acquired a minority stake. Earlier in March that year, Gateway Partners bought shares in the second-largest private equity investment in TVS Supply after CDPQ’s.