| Addressing mediapersons R Dinesh, director, TVS Automotive Europe Ltd, said that the new joint venture company will focus on providing total logistics solutions to tier-I and tier-II automotive companies in Spain and Portugal. |
| TVS Logistics Iberia has an equity capital of Rs 2 crore of which 51 per cent is held by TVS Automotive Europe Ltd and the remaining 49 per cent is held by its Spanish partner. |
| TVS Logistics Iberia will handle only the logistics automotive division, of the Transcoma group. We have got two clients Hispacold which manufactures airconditioners for buses and Irizar (which already has a tie-up with TVS group company to build bus bodies for domestic and export market), according to the agreement only the new business will be handled by the joint venture, he added. |
| Dinesh said that the new company will act as a complete business process outsourcing arm for clients to provide sourcing solutions "at Indian cost and not Spanish cost". |
| At present there are 30 Indians working in the TVS Logistics Iberia which is expected to be ramp to 150 Indian employees in the near future. In Spain, the logistics cost will be around 7 to 10 per cent of the total expenditure of companies. In the first attempt we were able to reduce the logistics cost by 15 percent, he added. |
| Service provided will include identification and audit of suppliers, quality documents, planning and delivery follow up, technical and commercial support, product development. |
| TVS Logistics Iberia expects a turnover of euros 3 million by the end of 2005 and targets a turnover of euros 10 million in 2007. potential of the automotive logistics in Spain is estimated at euros 25 million. |
| Jaime Oliver, president, Trancoma group, said that the group will enable this new joint venture company to access the spanish market to plan and implement customised supply chain models aimed at reducing the total logistics costs for the clients. |
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