TVS Logistics expands local footprint, acquires DIESL

Third party logistics player TVS Logistics Service (TVS LSL) has announced the acquisition of Drive India Enterprise Solution Ltd (DIESL). The deal is expected to make a combined entity of Rs 4,000 crore and one of India’s most capable and diversified companies in the logistics space.

Tata Opportunities Fund, the flagship private equity fund from the Tata Group, will invest upto Rs 250 crore into TVS LSL to fund the acquisition through a minority stake, while the rest of the funding will come from internal accruals. The deal is subject to regulatory approvals and valuations of the deal have not been disclosed.

TVS LSL, which has a strong presence in the automotive space though the acquisition, will strengthen its pan-India presence for the non-automotive sector as DIESL has an over 187-strong customer base in the consumer and retail segment with a strong presence in North and East India.  

According to R Dinesh, managing director, TVS LSL, “This deal is truly a game-changer for us as far as India is concerned and will bring together two capable and complementary companies in the 3PL space in India. This will enable us to add our already expanding base of non-auto customers and this deal will add close to 25 percent turnover to TVS LSL.”

TVS LSL is a diversified 3PL company operations in India, UK, USA, Europe and South Asia with nearly 11,000 employees spread over 70 locations and revenue of over Rs 3,000 crore.  

“TVS and we share common values of trust and fairness and enjoy a warm relationship, especially in the automotive business. We are confident the partnership will be mutually rewarding,” said K R S Jamwal, director, DIESL.

According to Dinesh, DIESL will continue to exist as a separate entity after the deal and will help TVS LSL reach its projected revenue target of US$ 1 billion by 2016.

DIESL, which was set up in 2003, has a 3PL network across India with more than 189 warehouses and 6.5 million square feet of storage space catering to the consumer product industry with a turnover of Rs 950 crore and close to 3,000 employees.