Post Date : December 18, 2020
TVS Industrial and Logistics Parks (TVS ILP) announced that it will raise a ‘growth capital’ from CDC Group. TVS ILP which is a 50:50 joint venture between TVS Supply Chain Solutions and Ravi Swaminathan Associates did not disclose any financials.
However, as per sources the company raised INR 400 crore by diluting a 40% stake.
This is the first institutional investment for TVS ILP for which the company had Avendus Capital as the exclusive financial advisor on board.
After this investment, CDC will become a significant minority shareholder in the business.
TVS ILP has been consistently growing over the years. To propel the company to the next level of growth, the company feels bringing in a strategic investment partner is the ideal next step.”~ R Dinesh, Director, TVS Industrial & Logistics Parks Pvt Ltd
Having acquired knowledge and capability in the past 15 years of our existence, we decided to focus on scale and size. To achieve this, we had sought growth capital from investors.”~ Ravi Swaminathan, Director, TVS Industrial & Logistics Parks Pvt Ltd.
This is the first-of-its-kind investment by an impact investor in the industry, Swaminathan claimed.
The company (TVS ILP) is playing a key developmental role by providing investment-grade warehouses in underserved markets, helping to facilitate trade and transport with efficient logistic facilities.”~ Srini Nagarajan, Managing Director and Head of Asia at CDC
Further he added, that this type of business-enabling infrastructure plays a vital role in economic development by connecting regions, enabling economies of scale, and reducing the cost of goods for consumers.
The investment will create 3,000 construction jobs and support the creation of another 500 employment opportunities during warehouse operations. Constructed to EDGE advanced green building standards, the warehousing will also minimize greenhouse gas emissions and support climate change mitigation, he said.
TVS Infrastructure and Logistics Parks was set up in 2005 to support the Group’s supply chain initiatives by providing core industrial infrastructure for manufacturing, distribution, and sales.
The company is primarily involved in creating industrial infrastructure facilities such as industrial & warehouse buildings, and logistics infrastructure parks, and as part of the same, it has set up world class facilities across multiple locations in Maharashtra, Tamil Nadu, Odisha, and Rajasthan. The scale of operations has almost tripled over the past couple of years, and TVS ILP is on track to reach its vision of 15 million sq. ft.