CDC invests Rs 400 crore in TVS Industrial and Logistics Parks

TVS Industrial and Logistics Parks, (TVS ILP), a 50:50 joint venture between TVS Supply Chain Solutions and Ravi Swaminathan Associates, today announced that it will raise ‘growth capital’ from CDC Group. TVS ILP and CDC did not disclose any financials.

TVS ILP and CDC did not disclose any financials, but sources said that the company raised Rs 400 crore by diluting 40 per cent stake.

Avendus Capital is the exclusive financial advisor to TVS Industrial and Logistics Parks on its fund raise from CDC Group.

It is the first time that TVS ILP has raised institutional investment. CDC will become a significant minority shareholder in the business. 

R Dinesh, Director, TVS Industrial & Logistics Parks Pvt Ltd, said that 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. 

Ravi Swaminathan, Director, TVS Industrial & Logistics Parks Pvt Ltd. said, “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". 

This is the first-of-its-kind investment by an impact investor in the industry, Swaminathan claimed.

 

Srini Nagarajan, Managing Director and Head of Asia at CDC, said: “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.“

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 opprtunities during warehouse operations. Constructed to EDGE advanced green building standards, the warehousing will also minimise greenhouse gas emissions and support climate change mitigation. 

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’s primary business activity involves 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.