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MOTORINDIA
l
May 2012
TVS Logistics’
funding pact with
KKR, Goldman Sachs
TVS Logistics Services, one of India’s
leading third-party logistics service provid-
ers, has announced that it has reached an
agreement with an affiliate of Kohlberg
Kravis Roberts & Co. L.P., together with
its affiliates, “KKR” and Goldman Sachs
for an investment of INR 2,688 million
(approximately $53 million). KKR, a lead-
ing global investment firm, will invest INR
2,424 million (approximately $47 million).
Goldman Sachs, a major global invest-
ment bank and initial outside investor in
the company, will make an add-on invest-
ment. The primary proceeds will be used
to further expand the company’s logistics
business.
This is the second time that TVS Logistics has suc-
cessfully received private equity funding. In 2008,
Goldman Sachs made an initial investment in the com-
pany.
Said Mr. R. Dinesh, Managing Director, TVS Logis-
tics Services: “We decided to go for the second round
of funding because we see the market potential and op-
portunity for us to expand and grow globally. The addi-
tional investment will allow TVS Logistics to continue
its expansion both through acquisitions and organic
growth. Besides growing with our existing customer
base, we also look forward to our private equity inves-
tors, Goldman Sachs and KKR, helping us expand our
capabilities and geographic footprint.”
Mr. S. Ravichandran, Executive Director, TVS Logis-
tics Services, said: “Within the Indian logistics sector,
we focus on the auto and discrete manufacturing sec-
tors. These industries are experiencing rapid growth
driven by both domestic and export demand and cur-
rently have relatively low third-party logistics (“3PL”)
penetration compared to their global peers. This funding
will help us to service our customers even better.”
Said Mr. Sanjay Nayar, Head of KKR India: “This in-
vestment is in line with our ongoing strategy to partner
with strong promoter groups and management teams in
a sector which builds on and benefits from the Indian
industrial uptick. Logistics consolidation in an other-
wise fragmented industry and best-in-class supply chain
management are clear areas where KKR, partnering
with TVS Logistics, can add a lot of value.”
According to Mr. Heramb Hajarnavis, Director of
KKR India, TVS Logistics has demonstrated a strong
track record of delivering just-in-time capabilities to
these highly demanding customers.
Mr. Sanjeev Mehra, Managing Director at Gold-
logistics
Mr. R. Dinesh,
Managing Director, TVS Logistics Services