Indian Prime Minister’s UK visit: TVS Logistics to use its UK capabilities to provide solutions in India

The company is high on confidence after it secured procurement solution contract for UK’s Ministry of Defence and look to replicate it in Indian Defence sector too

Chennai, November 13, 2015: As Prime Minister Narendra Modi visits the United Kingdom, TVS Logistics, India’s leading third party logistics service (3PL) provider, today announced that its UK business, TVS Supply Chain Solutions, will become its regional hub for the whole of Europe and a knowledge hub for supply chain. The company said its UK business has multiplied its revenues nearly seven times in the last five years, growing from £40m (INR 400 crores) to £274m (INR 2740 crores) forecasted for this financial year. Internationally, the company’s successful growth is attributed to its ability to identify unique capability and deploy it in other parts of the world, including India.

TVS will soon be opening a new 1,65,000 sq.ft. advanced logistics facility in Barnsley, with a rental commitment of £20m (INR 200 crores), where it will have its distribution warehouse, call centre, etc. The new facility is expected to create 100 new jobs as they further expand the business in the future. The new premises will also give rise to a new Logistics and Distribution training centre for staff development. Barnsley Council is supporting this development to create more jobs and for improved business base.

Earlier this year, TVS SCS, in a consortium with technology company team Leidos, won a key contract from UK Ministry of Defence (MoD) for its procurement solutions. The contract, worth £5bn over the 13-year period, will see TVS play a key role in data management, inventory management, procurement and product sourcing for the full range of military and non-military commodities required by the Ministry, including food, clothing, pharmaceuticals, medical equipment and general supplies. As part of the contract, TVS will introduce improved procurement processes that will lead to reductions in stockholdings and commodity prices and generate £500m (INR 500 crore) worth of efficiencies to the UK Ministry of Defence over the 13 years.

Says Mr. R. Dinesh, Managing Director, TVS Logistics Services, “The UK is a highly successful investment destination for TVS Logistics. Using our unique capability, TVS Logistics will work to help the ‘Make in India’ campaign successful as it has the know-how to make manufacturing in India Logistically competitive. TVS can provide significant benefits to the Indian Armed Forces through the learning from its UK division to reduce cost, improve availability and overcome obsolescence issues in non-military commodity requirements such as food, clothing, medical equipment, pharmaceuticals and in the Indian Army’s military vehicle fleet.”

Trade and investment Minister Lord Maude said: “The UK and India have a strong, successful trade relationship. Prime Minister Modi’s visit to the UK this week demonstrates our commitment and ambition to collaborate further. Both countries have a wealth of talent and expertise to share and I am pleased to see so many UK and Indian companies announcing deals this week. By working in partnership we can deliver real benefits and job creation for both of our economies.”

UK presence
TVS has made three acquisitions in the UK and operates through 47 locations in the UK, 4 in Ireland and 84 locations in Europe. Its business is primarily focused on providing supply chain services for clients in the sectors like, Defence, Industrial, Automotive, Beverage, Technology, Utilities, etc. TVS SCS already provides over 2500 jobs in the UK and in Europe and is one of the largest Indian employers in Northern England. The company will look to add another 550 new jobs as it expands its business in the next five years.

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