TVS LSL eyes $1 billion in 3 years

An integrated go-to-market strategy, unified ‘One TVS’ structure and leveraging cross-selling opportunities are some of the areas of focus for the city-based entity, that is among the country’s top three third-party logistics provider. 

As part of this aggressive growth plan, TVS LSL has restructured itself by bringing onboard R Shankar as the CEO to lead the India business. Eleven years after starting full operations, India continues to be the most important market for the company that has been registering 30 per cent CAGR since 2013, said TVSL MD R Dinesh, making all the announcement and sharing the overall strategy of the company. 

“With our global revenue already crossing $1 billion, we are now setting our focus firmly on India operations to achieve this ambitious target,” he said, dwelling on the growth plans post-acquisition of Diesl.

“The new India structure would leverage our global expertise and help us serve our customers better,” he added. Customer, capability and territory phase as part of its ‘cube’ long-term strategy would be the focus for the company, Shankar said, while presenting case studies that had proved the efficiency of cross-deployment of technology for its logistics clients. 

“Cross deployment of technology logistics and buy and sell from UK resulted in annualized return of Rs 100 crore,” he said, adding the company had set itself a three year target of reaching Rs 1,500 crore deploying this technique. 

He also cited the examples of a Chennai car manufacturer, who had been provided end-to-end solutions as TVSL took care of transport, export, in-plant packaging and assisting in its Gujarat expansion programme. 

It also helped a two wheeler manufacturer shift 192 engines from Hosur to Nalagarh in an efficient manner saving transportation costs by 50 per cent as the reduction in existing packaging costs dipped by 34 per cent. From a pure-play auto focus, it had shifted to non-auto areas, identifying FMCG, engineering and manufacturing, retail and e-commerce, technology and telecom among the eight key sectors of growth drivers. 

If auto constituted 96 per cent of its business last year, it is trying to scale it down to 36 per cent to achieve the $1 billion turnover milestone. 

TVSL has also formed four global Centre of Excellence (COEs) including one in Madurai as the new strategy involves looking at Internet of things and RFID technology, among others. With a soft launch in May, the COE has 25 people, which will be ramped upto 200.