May 26, 2015 - TVS Logistics Services Limited (TVS LSL) has reached an understanding, subject to Competition Commission of India (CCI) and requisite regulatory clearances, to acquire Drive India Enterprise Solutions Limited (DIESL), a Tata Group logistics company, for an undisclosed sum. The acquisition will be part funded with investment by Tata Opportunities Fund, the flagship private equity fund of Tata Capital.

DIESL was founded in 2003 as a joint venture between Tata International and Tata Industries, and has a pan-India 3PL network with more than 180 warehouses and 6.5 million sq.ft of storage space, catering primarily to the consumer products industry. TVS Logistics Services, part of the diversified TVS Group, is strong in automotive and has diversified its businesses in sectors like, beverages, IT, healthcare, telecom and defence globally. With complementary strengths across sectors and geographies, the combined entity would create one of the largest integrated logistics companies in India with a presence in multiple sectors and the ability to offer a wide range of services across the entire supply chain, from sourcing to last mile delivery. DIESL and TVSLSL together, are poised to pose a strong challenge, over time to leading players in the world.

DIESL's strong warehousing network in North and East India provides a good fit with TVS LSL, which has a strong footprint in South and West India. TVS LSL will integrate DIESL's operations in due course. Together, the combination will enjoy increased cross-selling opportunities given their repertoire of capabilities and customer access to provide a 'one-stop shop' solution for new and existing customers.

R. Dinesh, Managing Director of TVS LSL, said, "We are thrilled to be able to bring together two uniquely capable and complementary entities in the 3PL space in India. This move is highly strategic and enables us to add to our already expanding base of non-auto customers. Besides, we have widened our service capabilities including last mile delivery and other capabilities like demand forecasting and technology logistics through our overseas acquisitions. With our sophisticated range of services and capabilities, TVS LSL would be able to provide unmatched support to our (TVS & DIESL) clients in India."

K R S Jamwal, Executive Director of Tata Industries and Director on the Board of DIESL, said, "TVS and we share common values of trust and fairness and enjoy a warm relationship, especially in the automotive business. We are pleased that TVS LSL along with the Tata Opportunities Fund will be carrying forward the DIESL business, which has been nurtured by Tata Industries and Tata International. We are confident the partnership will be mutually rewarding".