CHENNAI: TVS Ssupply Chain Solutions (TVS SCS) has signed an agreement to acquire the Hyderabad-based Swamy & Sons 3PL for an enterprise value of
Rs 88 crore, marking its first acquisition after listing and a strategic push to deepen its presence in FMCG and consumer durables logistics, particularly in southern India.
Announcing the transaction here on Wednesday, K Sukumar, CEO, TVS SCS India, Middle East and Africa, said the acquisition by its wholly-owned su bsidiary FIT 3PL, is aimed a t scaling up the company’s finished goods distribution business , which contributes about 18 per cent of its overall supply chain operations. “Distribution supply chain is an area we want to grow significantly, keeping in mind the changes taking place in the FMCG and FMCD ecosystem,” he said.
Swamy & Sons 3PL (S&S3PL) has a strong footprint in Andhra Pradesh and Tel angana, with a smaller presence in Tamil Nadu and Karnataka. The company reported revenues of around Rs 207 crore and manages close to 4 million sq ft of warehousing space, which will boost TVS SCS’s total warehousing footprint in India to about 24 million sq ft, up from 20 million sq ft currently.
Sukumar said “T he strategic acquisition positions TVS SCS to be among the to p warehousing 3PL service pro viders in India, and our upstream capabilities enable us to serv ice third-party dark stores at scale.”
The acquisition adds 116 warehouse locations , access to over 110 customer facilities, and nearly 60 to 70 new customer logos to TVS SCS’s portf olio. It also strengthens the company’s capabilities in han dling perishables, including temperature-controlled warehousing, a key requirement for FMCG supply chains.
Swamy & Sons fo llows an asset-light model and has access to a fleet of over 600 vehicles, bolstering TVS SCS’s transportation and distributio n capabilities. “This transacti on significantly enhances our st rengths in co-packing, bundling and kitting services, which are critical for FMCG and consum er durable customers,” Sukumar said.
The deal will be completed in two tranches, with TVS SCS acquiring 80 per cent stake immediately, while the balance to be acquired after on e year, subject to customer transition.
Swamy & Sons employs around 1,400 to 1,500 people, all of whom are expected to be retained and will continue operating under the existing brand.
Sukumar clarifi ed that TVS SCS remains a B2B logistics provider and does not plan to enter last-mile deliv ery. However, the expanded network will enable it to service third-party dark stores and q-commerce fulfilment centres. “We are the backbone that moves goods up to retail stores and fulfilment centres,” he said.