TVS Supply Chain Solutions IPO
TVS Supply Chain Solutions Limited is among India’s largest and fastest-growing integrated supply chain solutions providers in terms of revenues in Fiscal 2021. The Company is an India-based multinational company that pioneered the development of the supply chain solutions market in India. TVS Supply Chain Solutions Limited was promoted by the erstwhile TVS Group, one of the reputed business groups in India, and is now part of the TVS Mobility Group, which has four business verticals: (i) supply chain solutions; (ii) manufacturing; (iii) auto dealership; and (iv) aftermarket sales and service. TVS Supply Chain Solutions Limited is the only differentiated Indian supply chain logistics solution provider to have global capabilities and network across the value chain with cross-deployment abilities.
Our solutions spanning the entire value chain from sourcing to consumption can be divided into two segments:
- Integrated supply chain solutions (“ISCS”):
It includes sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics operations, finished goods, aftermarket fulfillment, and supply chain consulting.
- Network solutions (“NS”):
It includes global forwarding solutions (“GFS”), which involves managing end-to-end freight forwarding and distribution across the ocean, air and land, warehousing and at port storage and value-added services, and time-critical final mile solutions (“TCFMS”) which involve closed-loop logistics and support including spares logistics, break-fix, refurbishment and engineering support, and courier and consignment management.
Globally, TVS Supply Chain Solutions Limited provided integrated supply chain solutions to 8,956 customers during the six months that ended September 30, 2021, while in India, the company provided solutions to 827 customers in the same period. The company’s customers span across numerous industries such as automotive, industrial, consumer, tech and tech infra, rail and utilities, and healthcare. The company has developed long-term relationships with a number of its clients, which has provided resilience to revenue and profitability. Some of the customers with whom the company has had long-term relationships include:
| · Mahindra & Mahindra Limited (17 years) | · Sony India Private Limited (11 years) | · Hyundai Motor India Limited (12 years)
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| · Ashok Leyland Limited (16 years) | · TVS Motor Company Limited (16 years) | · Johnson Controls-Hitachi Air Conditioning India Limited (2 years) |
| · Lexmark International Technology Sarl (5 years) | · Diebold Nixdorf (7 years) | · TVS Srichakra Limited (9 years) |
| · VARTA Microbattery Pte Ltd (6 years) | · Daimler India Commercial Vehicles Private Limited (11 years) | · Hero MotoCorp Limited (7 years) |
| · Modicare Limited (6 years)
· Electricity North West Limited (4 years) |
· Panasonic Life Solutions India Private Limited (11 years) | · Dennis Eagle Limited (16 years) |
TVS Supply Chain Solutions IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹1 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | Not Available |
| Fresh Issue | [●] shares
(aggregating up to ₹2000.00 Cr) |
| Offer for Sale | 59,477,497 shares
(aggregating up to ₹[●]Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 75% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 10% of the Offer |
| Promoters | TVS Mobility Private Limited, T.S. Rajam Rubbers Private Limited, Dhinrama Mobility Solution Private Limited, and Ramachandran Dinesh. |
TVS Supply Chain Solutions IPO Financial Analysis:
| Particulars | 6M FY-23(in cr.) | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR (FY-20 to FY-22) |
| Revenue from Operations | 5419.23 | 9249.79 | 6933.60 | 6604.55 | 11.9% |
| Other Income | 37.02 | 50.15 | 66.09 | 188.21 | |
| Operational Cost | 658.87 | 1170.92 | 933.22 | 904.41 | |
| Employee Cost | 1055.40 | 1889.13 | 1805.03 | 1809.64 | |
| Other expenses | 3372.75 | 5577.17 | 3808.66 | 3647.01 | |
| EBITDA | 369.24 | 662.71 | 452.78 | 431.70 | 15.4% |
| EBITDA margin% | 6.81% | 7.16% | 6.53% | 6.54% | |
| Depreciation | 254.22 | 461.05 | 443.28 | 444.50 | |
| Interest | 87.26 | 154.95 | 175.60 | 231.19 | |
| Exceptional Items | 2.31 | -33.17 | 49.67 | 2.19 | |
| Profit / (loss) before tax | 30.08 | 13.55 | -116.43 | -241.80 | |
| Total tax | -7.97 | 58.43 | -42.52 | 6.23 | |
| Profit / (loss) After tax | 38.05 | -44.88 | -73.90 | -248.03 | |
| Profit / (loss) After tax margin% | 0.70% | -0.49% | -1.07% | -3.76% |
TVS Supply Chain Solutions IPO Revenue from Operations:
| Segment | 6M FY-23(in cr.) | % | FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % | CAGR (FY-20 to FY-22) |
| Sale of products | 781.43 | 14.42% | 1392.87 | 15.06% | 1018.66 | 14.69% | 1105.71 | 16.74% | 8.0% |
| Sale of services | 4635.87 | 85.54% | 7855.01 | 84.92% | 5910.17 | 85.24% | 5496.33 | 83.22% | 12.6% |
| Income from supply chain management services | 4562.98 | 84.20% | 7726.11 | 83.53% | 5821.76 | 83.96% | 5391.13 | 81.63% | 12.7% |
| Income from telecom services | 72.89 | 1.35% | 128.90 | 1.39% | 88.40 | 1.27% | 105.20 | 1.59% | 7.0% |
| Other operating revenue | 1.93 | 0.04% | 1.90 | 0.02% | 4.77 | 0.07% | 2.51 | 0.04% | -8.8% |
| Total | 5419.23 | 100.00% | 9249.79 | 100.00% | 6933.60 | 100.00% | 6604.55 | 100.00% | 11.9% |
TVS Supply Chain Solutions IPO Strengths:
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TVS Supply Chain Solutions Limited operates at the forefront of a rapidly expanding logistics industry in India that is expected to grow to US$365 billion by Fiscal 2026 at a CAGR of 15% from US$180 billion in Fiscal 2021. India has an inefficient logistics system, with total logistics spending in India accounting for approximately 14% of GDP in Fiscal 2020, which is significantly higher than developed countries like the United States.
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TVS Supply Chain Solutions Limited acts as a complete ‘one-stop’ solution for customers from sourcing to distribution through its end-to-end capabilities, which include sourcing and procurement, integrated transportation, logistics operating center, in-plant logistics operations, finished goods, and aftermarket fulfillment, import and export freight, closed-loop logistics and support, and secondary transportation.
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TVS Supply Chain Solutions Limited is strongly differentiated by its technology as an innovative provider of logistics solutions that enhance visibility, speed, accuracy, and cost-effectiveness for the customers, and by the company’s ability to customize its technology-enabled services to cater to each customer’s requirements
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TVS Supply Chain Solutions Limited has an established track record of successful inorganic growth through strategic acquisitions that supplement our operations. Over the years, the company has made more than 20 acquisitions in the last 15 years for growth across Europe, the United Kingdom, the United States, and Asia Pacific (including India).
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TVS Supply Chain Solutions Limited operates an asset-light business wherein the warehouses and vehicles are operated through leases with the network partners. While the company does not have ownership of these assets, it has control over the capacity and fleet, and the scheduling, routing, storing, and delivery of goods are managed by the company.
TVS Supply Chain Solutions IPO Risk Factors:
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TVS Supply Chain Solutions Limited typically enters into long-term agreements with customers and if its key customers do not renew their agreements with the company, or expand the scope of services, the company provides to them, or if the long-term relationships with the key customers are impaired or terminated, the business, financial condition, results of operations and cash flows could be adversely impacted.
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TVS Supply Chain Solutions Limited has undertaken and may continue to undertake strategic acquisitions in the future, which may be difficult to integrate and manage. These may expose the company to uncertainties and risks, any of which could materially adversely affect the business, financial conditions, results of operations and cash flows.
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TVS Supply Chain Solutions Limited derives a significant portion of its revenue from certain industries, and a loss of, or a significant decrease in business from customers in these industries could adversely affect the business, results of operations, financial condition, and cash flows of the company
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TVS Supply Chain Solutions Limited depends on network partners and other third parties in certain aspects of the operations and unreliable or unsatisfactory services provided by them or failure to maintain relationships with them could result in a disruption in the operations, which could have an adverse effect on the business, financial condition, results of operations, and cash flows.
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TVS Supply Chain Solutions Limited is highly reliant on its technology infrastructure and software suite in the business operations, and any disruption or failure of the technology infrastructure could materially and adversely affect the growth prospectus, reputation, business, results of operations, financial condition, and cash flows
TVS Supply Chain Solutions IPO Objects of the Offer:
TVS Supply Chain Solutions Limited proposes to utilize the Net Proceeds towards funding the following objects:
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and its Subsidiaries, TVS LI UK and TVS SCS Singapore
- Purchasing minority stake from existing shareholders of our Subsidiary, Rico Logistics Limited, UK;
- Capitalisation of strategically important step-down Subsidiaries TVS SCS Germany, TVS LI USA and TLM Thailand;
- Inorganic growth initiatives and general corporate purposes.
TVS Supply Chain Solutions Limited IPO Prospectus:
- TVS Supply Chain Solutions Limited IPO DRHP –
- TVS Supply Chain Solutions Limited IPO RHP –
Registrar to the offer:
Link Intime India Private Limited
Tel.: +91 22 4918 6200
E-mail: tvs.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan