TVS Logistics Services Ltd. (TVS LSL), the home-grown multinational third-party logistics service provider, has announced aggressive growth plans for the Indian market for the next three years, setting a target of $1 bn revenue from the domestic market by FY’21. The company shared that it has devised multiple strategies including a new organizational structure, global integration, cross deployment, leveraging GST opportunities, etc., towards achieving the ambitious revenue target. It further added that Mr. R. Shankar, who was until now managing select business operations of TVS LSL as its CEO, has been given the responsibility to lead the overall India business for achieving the $1 bn revenue target by FY’21.
Addressing the media, Mr. R. Dinesh, Managing Director, Mr. S. Ravichandran, Deputy Managing Director, Mr. R. Shankar, CEO, TVS LSL, Mr. Sanjive Sharma, Global CEO, Rico Logistics, shared their views about the company’s revenue target and its future business strategy to achieve the same.
Mr. Dinesh said: “With our global revenue already crossing $1 bn, we are now setting our focus firmly on India operations to achieve this ambitious target. Our India business, especially post acquisition of DIESL, has been growing above 30% CAGR over the last five years and we look to improve this growth further in the next three years to reach the target of $1 bn revenue in India. As part of the India growth strategy, I am happy to announce R. Shankar as the CEO of our overall India operations. The new India structure would leverage our global expertise and help us serve our customers better.”
Mr. Ravichandran shared: “Implementing Matrix structure and solutions acquired globally will enable TVS LSL to offer best-in-class solutions to MNC clients in India as also to other Indian clients.”
Mr. Shankar stated: “We are fully geared up for this ambitious growth target. We will continue to differentiate and bring in operational synergies to provide end-to-end solutions for our customers and value added services in India.”
Mr. Sanjive Sharma added: “Our capabilities are unique. We have integrated and converted the aftermarket spare parts (non-auto) into a solution mode globally. We see this as a huge growth opportunity both with global customers in India and Indian customers globally.”
The new structure
As part of the new structure, Mr. Shankar will continue to report to Mr. Ravichandran, who has been elevated as Deputy Managing Director. In addition to the existing business enabling functions like Finance, IT and HR, TVS LSL has created a new role of Integrated business heads for the four major regions in India who will also be subject matter experts for key sectors like Automobile, Technology and Engineering. With India taking a lead in adopting this strategy, the company is looking to standardize this template for a global rollout in a phased manner.
Global Centre of Excellence
TVS LSL has formed four Centres of Excellence (COE) across the globe located in the UK, the US, Singapore and India. The COE in the UK will focus on contract logistics, the US centre will work on production & inbound supply chain, the COE in Singapore will focus on freight forwarding and the one in India will concentrate on global technology.
The India centre was created in April this year and is based out of Madurai. The centre will aim to build new age apps and solutions, using Indian ingenuity with global know-how, for ‘track & trace’ to provide intelligent communications to clients. Mr. Dinesh Narayanan, who is heading the Global IT at TVS Logistics will also lead the Global Centre of Excellence initiative.