TVS Logistics forms JV with Global Rush

TVS Logistics Services and US-based Global Rush have formed a 49:51 joint venture - TVS America - to offer export and import logistics services, component assembly, warehousing, distribution and engineering support to Indian suppliers and US manufacturers.

TVS Logistics has been working with Global Rush, part of the $1 billion enterprise owned by first generation entrepreneur Andra Rush, as an alliance partner over the past two years.

Global Rush offers customers brokerage services, freight forwarding, and a variety of international trade services. It also assembles products for a number of vehicle platforms for companies like General Motors, Ford, DaimlerChrysler, Honda and Bosch.

The JV company, which will be headquartered in Michigan, will be eligible for minority business enterprises' benefits such as fiscal incentives. The company has planned an initial investment of $1 million primarily in testing equipment, people and working capital requirements. The JV expects to garner revenue of $6 million in the first year and $60 million within five years. 

R Dinesh, director, TVS Logistics Services, said: "The formation of the JV will provide a host of benefits to Indian suppliers and customers as there will be flexible pricing and servicing options. The JV will also bring in value additions like quality, marketing, engineering support and warehousing capability anywhere in the US as well as provide at least 25% savings on supply chain costs."

Andra Rush, chairman, Global Rush, said the JV would enable the company to double business in North America and expand operations in the Asian markets. 

Global Rush has a strong presence in China, and has been sourcing components and parts from China for its North American customers. The formation of the JV with Global Rush will enable TVS Logistics to offer logistics and other services from China to customers in Europe and other Asian markets.