### **Overview** TVS Supply Chain Solutions Ltd (TVS SCS) is an India-based multinational and a pioneer in the Indian supply chain solutions market. Originally promoted by the TVS Group and now part of the **TVS Mobility Group**, the company has over two decades of experience in delivering customized, technology-enabled end-to-end supply chain solutions. It operates across **25 countries** on four continents—Asia, Europe, North America, and Oceania—with over **23,800 employees** (13,012 permanent in India; 3,789 internationally) and a global warehouse footprint of **24.8 million square feet**. TVS SCS serves **91 Fortune Global 500 companies** (up from 78 in FY24), reflecting its strong position as a trusted partner for complex, large-scale supply chain needs across industries including **automotive, industrial, consumer goods, technology, healthcare, rail, utilities, and e-commerce**. --- ### **Business Segments & Service Offerings** The company operates through two primary business segments: 1. **Integrated Supply Chain Solutions (ISCS)** – Accounts for approximately **55%** of FY24-25 revenue. – Offers comprehensive services from sourcing to consumption, including: - Procurement & sourcing - In-plant logistics (kitting, sequencing, sub-assembly) - Finished goods management - Aftermarket fulfillment - Supply chain consulting – Strong focus on **value-added logistics** and **tech-driven process optimization**. 2. **Network Solutions (NS)** – Contributes **45%** of FY24-25 revenue, split between: - **Global Freight Solutions (GFS):** End-to-end ocean, air, and land freight forwarding, including LCL/FCL, customs brokerage, and project cargo. - **Integrated Final Mile (IFM):** Closed-loop logistics, break/fix support, refurbishment, spare parts fulfillment, and time-critical delivery services. --- ### **Strategic Growth Framework ("3C Strategy" / "C3 Framework")** TVS SCS follows a strategic **Customer-Capability-Country ("3C") growth model**, also referred to as the **“C3 Framework”**, aimed at driving sustainable, tech-led expansion: - **Customer:** Deepen relationships via **"encirclement" strategy**—expanding service offerings across regions with existing clients to increase wallet share. - **Capability:** Invest in **AI, automation, talent, and digital platforms** to build differentiated, scalable service offerings. - **Country:** Expand geographic footprint through organic scaling, partnerships, and targeted inorganic growth in high-potential markets. The company is on a mission to become **one of the top 50 global supply chain providers**. --- ### **Global Business Performance Highlights (Nov 2025)** - **Revenue:** ₹10,029 crore in FY25 (+8.4% YoY); revenue in FY24-25 driven by strong execution across geographies. - **Profitability:** Achieved **₹29 crore Profit Before Tax in FY25**, reversing a prior-year loss and signaling a return to consistent profitability. - **Order Book & Pipeline:** - **Order book:** ₹6,200 crore, with ~one-third attributed to India ISCS. - **New business secured in FY25:** ₹1,009 crore (~10% of FY25 revenue). - **Order pipeline entering FY26:** Record **₹5,250 crore**, supporting sustained growth. --- ### **Regional Performance & Expansion** #### **India Segment (ISCS)** - **11.6% CAGR** over past four years (exceeding India’s GDP growth). - 19.9 million sq. ft. warehouse space; key focus on **automotive, EVs, renewables, consumer durables, precision engineering**. - Increasing automation in warehousing; implementation of **lean IT solutions**, **AI**, and **digital control towers**. - Notable client wins: EV manufacturers, agri-equipment OEMs, domestic auto manufacturers. #### **North America (ISCS & TVS SCS NA Inc.)** - Achieved **20.3% CAGR** over past four years (surpassing U.S. GDP growth). - Delivered **24.6% YoY growth in FY25**. - Opened a new **225,000 sq. ft. automated facility in Waterloo, Iowa (Sep 2025)**; fully pre-committed and offering **value-added services** (kitting, sequencing, JIT delivery). - A second identical facility set to open in Q1 FY26; **expanding manufacturing support presence** in U.S. Midwest. - Secured a **multi-year ₹2,200 crore contract** with a major U.S. industrial customer. #### **UK & Europe (ISCS)** - **14.4% CAGR** over past four years (outperforming UK GDP). - **UK ISCS** business achieved **18.2% CAGR**. - Long-term client contracts: **avg. 7.0 years for top 20 customers**. - Revenue per contract grew at **~16% CAGR (FY21–FY25)**. - Major win: **£1,000 crore (approx. ₹1,000 crore) 3-year contract** with a UK retail giant for storage & distribution services. --- ### **Technology & Innovation Leadership** TVS SCS operates as a **tech-led, asset-light provider**, investing heavily in AI, automation, and cloud-native digital platforms: - **AI & Machine Learning:** Deployed across 15+ projects for route optimization, inventory forecasting, and document processing. - **Generative AI:** - **Sidekick:** Internal enterprise-grade GenAI platform for HR & policy queries, evolving into workflow automation tool. - Piloting **AI-powered bidding assistants** using large language models (LLMs). - **Alpha Platform:** Real-time TMS with **AI-proofed PO delivery processing**. - **Microsoft Co-Pilot Integration:** Across business units to enhance intelligent workflows. - **Proprietary Platforms:** - **Msys:** Integrated supply chain analytics & forecasting. - **i-Loads:** End-to-end truck management & billing. - **Courier Alliance:** Dynamic last-mile courier marketplace. - **e-Connect:** Digital freight platform with **CO2 emission tracking**. - **Automation:** Deployed **ASRS, robotics, drones, and vision systems** in key facilities (e.g., two-wheeler OEM spare parts warehouse). --- ### **Strategic Investments & Inorganic Growth** - **TVS ILP (Industrial & Logistics Platform):** - TVS SCS holds a **25% strategic stake**. - ILP transferred **11 million sq. ft.** of logistics platform assets into an **InvIT** backed by institutional investors, unlocking significant value. - TVS SCS recorded **₹177 crore profit share (Q1 FY26)** from asset transfers. - **Acquisitions:** - **TVS LI USA (incorporated Dec 2010):** Strengthened U.S. warehousing and freight capabilities; turnover grew from ₹7,062M (FY23) to ₹10,299M (FY25). - **Project One (UK/Europe):** Strategic rightsizing and rightshoring to improve efficiency and margins. --- ### **Global Presence & Organizational Structure** TVS SCS operates via a **"One TVS SCS" model** (via **Project Voyager**), integrating formerly independent units into a unified global framework: - **Regional Hubs:** - Europe & North America - India / Middle East / Africa - Asia-Pacific - **Subsidiaries:** - Direct presence in the **U.S., Mexico, UK, Germany, France, Spain, Australia, and Singapore**. - 100% ownership of key entities: - TVS Supply Chain Solutions North America Inc. - Rico Logistics Pty Ltd (Australia) - TVS SCS GmbH (Germany), TVS SCS Iberia S.L. (Spain) - TVS SCS Pte Ltd (Singapore) and its Asia subsidiaries (Korea, China, Thailand, Malaysia, etc.) - 51% stake in **TVS Autoserv GmbH (Germany)**. - **Control Mechanisms:** - Uses **Section 87(ii)** of Companies Act, 2013 to control **12 indirect subsidiaries** (e.g., freight, packaging, IT services) across India and global markets. --- ### **Key Client Wins & Pipeline (2025–26)** - **New Customers (FY25–26):** - U.S.-based **electric vehicle manufacturer** - **Global battery tech leader** - **Major IT services firm**, **multinational FMCG player**, **defense infrastructure org**, and **telecom provider (UK)**. - **Major Contracts:** - **7-year framework agreement with UK government** for critical systems spares management. - **3-year contract with JCB (India)** for in-plant logistics. - **Multi-year ₹2,200 crore contract** with a North American industrial client. - **Pipeline Opportunities:** - Integrated 3PL for **HVAC, chemicals, agri-equipment, defense, EVs, and IT infra** customers in India and abroad. - Expansion of contracts with **Daimler Truck SE Asia (Singapore hub), global rail transport provider, and U.S. EV maker**.