TVS Logistics Services Ltd (TVS LSL), on Monday inaugurated its logistics assembly facility at Sholavaram, 40 km from Chennai. This will be a dedicated and full-fledged assembly facility for Ashok Leyland (power solution business) to assemble their genset engine powerpacks in the range of 10 – 2000 KVA capacity for both domestic and export markets.
The facility was inaugurated by Vinod K Dasari, managing director, Ashok Leyland, in the presence of R Dinesh, managing director, TVS Logistics. With an initial investment of Rs 2.5 crore, the plant will have a capacity of 14,500 units per annum and can be up-scaled to 30,000 units.
Ashok Leyland would supply engines and radiators to TVS Logistics, which will provide end-to-end supply chain solutions by ensuring infrastructure, procuring child parts, assembling, packaging, material handling solutions and logistics solutions for the assembled genset engine powerpacks as per Ashok Leyland’s requirements.
This arrangement would also mean that TVS Logistics will be a single-point of contact for Ashok Leyland for assembling their 10 - 2000 KVA range of genset engine powerpacks.
TVS Logistics Services managing director R Dinesh said, “This facility is a milestone for us as very few supply chain companies globally have the capability to provide end-to-end supply chain solutions which include taking ownership of the sub-assemblies. Thanks to our acquisitions in the US and UK, we are now able to offer this service in India."
According to Ashok Leyland MD Vinod Dasari, the company's power solution business is growing robustly in tune with the domestic genset market that is shortly expected to touch 200,000 units per annum.
Overall, the supply chain market in India is evolving and as in developed countries, complete outsourcing is expected to slowly start in India.