TVS Logistics draws aggressive growth strategies for India business; aims for $ 1 bn revenue from India operations by FY ‘21
– To leverage post GST opportunities, global integration and cross deployment to bring unique differentiated capabilities to Indian market
– Announces new organization structure with R. Shankar leading the India business
Chennai, 29th August, 2017: TVS Logistics Services Ltd. (TVS LSL), the India-based multinational third-party logistics service provider, announced its aggressive growth plans for Indian market for the next three years. The company informed that it has devised multiple strategies that include, a new organizational structure, global integration, cross deployment, leveraging GST opportunities, etc. towards achieving its growth in India. It further added, Mr. R. Shankar has been given the responsibility to lead the overall India business for achieving its $ 1bn revenue target by FY 2021. R. Shankar was earlier managing select business operations in India.
Says R. Dinesh, Managing Director, TVS Logistics Services Ltd., “With our Global revenue already crossing $ 1bn, we are now setting our focus firmly on India operations to achieve this ambitious target. Our India business, especially post acquisition of DIESL, has been growing above 30% CAGR over the last five years and we look to improve this growth further in the next three years to reach the target of $ 1bn revenue in India. As part of the India growth strategy, I am happy to announce R. Shankar as the CEO of our overall India operations. The new India structure would leverage our global expertise and help us serve our customers better.”
S. Ravichandran, Deputy Managing Director, TVS Logistics Services Ltd., said, “Implementing Matrix structure and solutions acquired globally will enable TVS LSL to offer best-in-class solutions to MNC clients in India as also to other Indian clients.”
R. Shankar, CEO, TVS Logistics Services Ltd., said, “We are fully geared up for this ambitious growth target. We will continue to differentiate and bring in operational synergies to provide end-to-end solutions for our customers and value added services in India.”
Sanjive Sharma, Global CEO, Rico Logistics, said “Our capabilities are unique. We have integrated and converted the aftermarket spare parts (non-auto) into a solution mode globally. We see this as a huge growth opportunity both with global customers in India and Indian customers globally.”
The new structure
R. Shankar will continue to report to S. Ravichandran, who has been elevated as Deputy Managing Director. In addition to the existing business enabling functions like Finance, IT and HR, TVS LSL has created a new role of Integrated business heads for the four major regions in India who will also be subject matter experts for key sectors like Automobile, Technology and Engineering. With India taking a lead in adopting this strategy, the company would look to standardize this template for a global rollout in a phased manner.
Global Centre of Excellence
TVS LSL has formed four Centre of Excellence (COE) across the Globe viz., the UK, the USA, Singapore and in India. The COE in the UK will focus on contract logistics, the USA centre will work on Production & Inbound supply chain, the COE in Singapore will focus on freight forwarding and the one in India will concentrate on Global technology. The India centre was created in April this year and is based out of Madurai. The centre will aim to build new age apps and solutions, using Indian ingenuity with Global know-how, for ‘track & trace’ to provide intelligent communications to clients. Dinesh Narayanan, who is heading the Global IT at TVS Logistics will also lead the Global Centre of Excellence initiative.
TVS LSL employs around 19,000 (12,000 direct and 7000 indirect) strong work force in India and one of the leading employment providers in the Logistics sector. TVS Supply Chain Solutions (UK) also provides over 2500 jobs in the UK and in Europe where we are one of the largest Indian employers in Northern England. We also provide another 2,000 jobs in the USA. TVS LSL has always believed people are its most valuable assets and it continues to provide right developmental opportunities for their growth.