TVS Logistics Services Ltd (TVS LSL) has announced that it will pick up a majority stake in Australia-based Transtar International Freight, a privately-held logistics firm, in a move that is aimed at strengthening the company’s presence in the entire Asian region.
The Rs.850 crore Transtar secures over 70 per cent of its revenues from the Asian market.The deal is actually expected to help enhance freight forwarding capability of TVS Logistics.
TVS LSL will pick up the stake in the Australian company through its Singapore JV arm TVS Asianics Supply Chain Solutions.
ADVERTISEMENT
R.Dinesh, Managing Director of TVS LSL stated that the company had agreed to pick up more than 51 per cent stake in Transtar and it has committed a total budget of Rs.200 crore, both for acquisition and further expansion. “Among other expertise, Transtar also brings with it strong back office capabilities which will give us a strong edge as also save costs,” he added.
TVS Logistics has now strengthened its capabilities in all major geographies to seize the business opportunities from global players who are likely to favour 3PL companies having own operations across key markets. In the past, it had done acquisitions in the UK, Europe and US.
The Transtar deal to bring in revenues of about $500 million over the next five years. Overall, TVS LSL aims to end the present fiscal with total revenues of Rs.4,700 crore, up from Rs.3,100 crore in 2014-15.
ADVERTISEMENT