New Delhi, Jan. 28 -- TVS Supply Chain Solutions Ltd, which is backed by Singapore- and Dubai-based alternative investment firm Gateway Partners, is acquiring a third-party logistics (3PL) company.
Mumbai-listed TVS Supply Chain Solutions said on Wednesday it plans to expand its capabilities in the fast-moving consumer goods (FMCG) and fast-moving consumer durables (FMCD) segments with the acquisition of Swamy & Sons 3PL Pvt. Ltd through a combination of primary and secondary share purchases.
The transaction will be completed in two tranches and assigns the Hyderabad-based third-party logistics company an enterprise value of about Rs 88 crore ($9.5 million). The acquisition will be funded through internal accruals.
Under the first tranche, expected to close by May 28, 2026, TVS Supply will acquire an 80% stake in Swamy & Sons 3PL through a primary equity infusion of Rs 70.4 crore, subject to net debt and working capital adjustments.
The remaining 20% stake will be acquired by September 30, 2027, for Rs 17.6 crore through a secondary purchase from the founding shareholders.
Swamy & Sons 3PL is a newly incorporated entity formed to acquire the logistics businesses of the Swamy Sons Group, including Swamy Sons (Agencies) Pvt Ltd, Sovereign Enterprises, and Crystal Marketing Corporation.
The combined businesses reported consolidated revenue of Rs 207.1 crore for the financial year through March 2025, up from Rs 210.3 crore in FY24 and Rs 215.4 crore in FY23.
The company operates in the third-party logistics and warehousing segment, with a strong presence in Andhra Pradesh and Telangana, and focuses largely on FMCG and FMCD supply chains. It reported a profit before tax margin of about 3.2% in FY25.
TVS Supply Chain Solutions said the acquisition would strengthen its capabilities in FMCG and FMCD logistics, expand its regional footprint, and support revenue and profit growth through scale and operating synergies. The company currently operates more than 20 million square feet of warehousing space in India.
Following completion, Swamy & Sons promoter Arun Swamy will continue to lead the business to ensure a smooth transition and continuity for customers.
TVS Supply Chain Solutions, part of the TVS Mobility Group, operates across 25 countries and serves customers across automotive, industrial, consumer, healthcare, and technology sectors. It is backed by Gateway Partners, which had invested $100 million in the firm in early 2020, and owned a 12.77% stake as of Dec. 31.
It also counts Lingotto as an investor with a 9.65% stake. Lingotto is an investment firm owned by Exor, the holding company of Italy's Agnelli family.
Published by HT Digital Content Services with permission from VC Circle.