DIESL has been providing services to consumer durable and FMCG sectors mainly. With this acquisition, TVS Logistics will have diversified base both from the warehouse and customer perspective. "We expect the total turnover of the combined entities to touch Rs 4,000 crore after the acquisition," said R Dinesh, managing director, TVS Logistics Ltd.
He added, this move is highly strategic and enables the company to add to its 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 company's overseas acquisitions," he said.
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DIESL will be the 14th acquisition for TVS Logistics. The company had acquired around 12 companies outside India.
DIESL is an integrated supply chain provider, mainly focussed on 3PL, sourcing and others. The 12-year old company currently got 6.5 million space of warehouse, 7,000 towns covered, 189 warehouses across India. Turnover of the company is currently at around Rs 953 crore.
Dinesh said the brand DIESL would continue to exist, while the call to merge the company with TVS Logistics will be taken on a later date.
Some of the major customers of DIESL include Colgate, Cadbury, Amway, Voltas Ltd, Sony, Philips, Godrej, Spencers, Walmart, Titan, Tata Motors, Hyundai and others.
Dinesh said currently 98% of TVS Logistics domestic turnover, which is around Rs 700 crore, comes from autospace.