TVS Industrial and Logistics Parks (TVS ILP) unveiling an ambitious expansion strategy said it has plans to have either a warehousing facility or a logistics park every 400 kilometres across the country.
TVS ILP as an initial step towards this goal will double its portfolio of facilities to 20 million square feet within the next three years, with an investment of approximately $400 million, a senior company executive announced on Thursday.
The company intends to raise $150-175 million of the $400 million by using some form of equity instrument, said Nitin Aggarwal, President of TVS ILP.
The company’s client base includes TVS Family companies, Alstom, Amazon, Flipkart, Ather Energy, and Agnikul. TVS ILP operates as a joint venture between TVS Supply Chain Solutions and Ravi Swaminathan and Family.
TVS ILP as part of the expansion strategy is set to broaden its footprint from 11 cities across five states to approximately 35 cities.
“We have a capacity of around 10 million square feet now. This will be expanded to 20 million square feet in the next three years. We will be investing around $400 million for this,” Aggarwal said adding that various equity instruments, including private equity investment, are currently under consideration by the company.
As it stands, TVS ILP boasts contracted revenue of $750 million per year, with the majority of these contracts spanning a period of eight to ten years. During the financial year 2022-23, the company’s revenue from operations was recorded at Rs 150 crore. “For the past five years, we were growing at a rate of 20-25 per cent, and we expect to continue this growth rate. On the other hand, the industry has been growing at a rate of 15-17 per cent per annum,” Aggarwal remarked.
At present, TVS ILP has a land area of 400 acres dedicated to its existing facilities, which include locations in Pune, Chennai, Hosur, Vijayawada, and Bhubaneswar. For its expansion plans, the company already possesses a land bank of around 200 acres, said Manikandan Ramachandran, Chief Operating Officer of TVS ILP. The upcoming investments will be primarily focused on Eastern India.
