TVS unit to invest $1 billion in warehouses

TVS Industrial & Logistics Parks (TVS ILP), the warehousing and logistics solutions business of the TVS Mobility Group, said it would have invested $1 billion in developing 20 million square feet of infrastructure in 20 different warehousing parks in the country in the next three to four years.

TVS Industrial & Logistics Parks (TVS ILP), the warehousing and logistics solutions business of the TVS Mobility Group, said it would have invested $1 billion in developing 20 million square feet of infrastructure in 20 different warehousing parks in the country in the next three to four years.

“We would have invested $1 billion towards developing a total of 20 million sq. ft of logistics and warehousing infrastructure across the country in the next three to four years,’‘ Manikandan Ramachandran, COO, TVS ILP told The Hindu.

TVS ILP already has 11 logistics parks in Tamil Nadu, Maharashtra, Odisha, Andhra Pradesh and Rajasthan with a cumulative space availability of 10 million sq. ft. The company currently has a 35 clients from across segments viz. FMCG, FMCD, 3PLS (third party logistics in supply chain management), CDE (Consumer Durables and Electronics), e-commerce, automotive and manufacturing.

“We are now expanding our presence in another 30 cities across the country to double our warehousing infrastructure to 20 million sq. ft. We are exploring a park in every 400 km in the country,’‘ he added.

TVS ILP is currently in the process of exploring land availability in Madurai, Vijayawada, Cuttack, Kolkata, Siliguri and Guwahati. Ideally, each of these parks would require a land parcel of 20 to 40 acre while a large independent client might require a million sq. ft of space.

“Over the next few years, the annual spend of our company will be in the range of $75 million to $85 million,’‘ Mr. Ramachandran added.

TVS ILP’s business has been witnessing a growth of 30% year-on-year and the management was also evaluating various options for future growth capital, he added.