Rs 4,500 Crore Order Pipeline And Global Expansion: This Leading Supply Chain Firm Invests Rs 28.38 Crore In Its U.S. Subsidiary

The company boasts a diverse clientele, including 78 Fortune 500 companies, and has a robust order pipeline valued at Rs. 4,500 crore.

TVS Supply Chain Solutions Limited has announced a significant investment in its wholly owned subsidiary, TVS Logistics Investments Inc. USA. The company has allocated equity shares to the subsidiary, with the transaction being conducted on an arm's length basis. This strategic move aims to bolster the subsidiary's cash flow and working capital requirements. TVS Logistics Investments Inc. USA, which operates in the storage, warehousing, freight transportation, and land transport services sector, reported a turnover of Rs 796.177 crore for FY24. The acquisition cost amounted to Rs. 28.378 crore, with shares priced at $110 each. The subsidiary will continue to be fully owned by TVS Supply Chain Solutions, maintaining its role as a key player in the company's international operations. This investment is part of TVS Supply Chain Solutions' broader strategy to enhance its global footprint and operational capabilities.

TVS Supply Chain Solutions Limited is a prominent provider of supply chain management services, catering to international organisations, government departments, and businesses of varying sizes. The company operates through two main business segments: Integrated Supply Chain Solutions and Network Solutions. The former, which has grown by 40 per cent between FY22 and FY24, focuses on sourcing, procurement, logistics operations, and supply chain consulting.

In contrast, the Network Solutions segment has seen a 28 per cent decline in revenue due to geopolitical tensions and fluctuating freight rates. TVS Supply Chain Solutions employs an asset-light business model, leveraging leased warehouses and vehicles to expand its operations across 26 countries. The company boasts a diverse clientele, including 78 Fortune 500 companies, and has a robust order pipeline valued at Rs. 4,500 crore. With a focus on technology-driven solutions and strategic acquisitions, TVS Supply Chain Solutions aims for mid-teens growth in the coming years.

As of March 28, 2025, the stock price of TVS Supply Chain Solutions Limited is Rs 120.9. The stock has a 52-Week High of Rs 215.6 and a 52-Week Low of Rs 120.9, currently trading near its 52-week low. The market capitalisation of TVS Supply Chain Solutions Limited stands at Rs 5,334 crore. The stock has experienced a 1-year return of -21.72 per cent. Major public shareholders include Lingotto Alternative Investments Master Fund Icav - Lingotto Special Opportunities Master Fund with 9.65 per cent, Mahogany Logistics Services Private Limited with 8.50 per cent, Mahogany Singapore Company Pte. Ltd. with 4.27 per cent, Sunil Kant Munjal with 3.38 per cent, and TVS Motor Company Limited with 2.39 per cent.

In December 2024, the company reported a revenue of Rs 2,444.62 crore, reflecting a growth of 10.03 per cent compared to Rs 2,221.84 crore in December 2023. However, operating profit saw a decline of 18.16 per cent, falling to Rs 132.63 crore from Rs 162.07 crore in the previous year. The most significant drop was seen in the Profit After Tax (PAT), which turned negative at Rs (24.65) crore, a sharp decrease of 357.85 per cent compared to Rs 9.56 crore in December 2023.

For the full fiscal year 2024, the company recorded a total revenue of Rs 9,199.98 crore, marking a decrease of 7.95 per cent from Rs 9,994.38 crore in FY23. The net profit also experienced a considerable decline, with a loss of Rs (101.21) crore, down 354.23 per cent from a profit of Rs 39.81 crore in FY23.

Disclaimer: The article is for informational purposes only and not investment advice.