TVS enters construction, targets Rs.6,000 cr investment

In view of the emerging huge business avenues in the sector, TVS Logistics has entered into the construction sector and targeted investment worth Rs.6,000 crore in the new verticals including movement of bulk commodities and procurement planning of non-production items for other projects. According to the CEO (India), TVSLSL, R Shankar, in the construction business, the company will get into bulk transport of various commodities such as cement and steel. These capabilities are available within the company’s fold elsewhere and will be cross deployed in India. TVS Logistics has over the last decade-and-a-half acquired over 20 businesses in logistics and related areas worldwide. Apart from that, TVSLSL will also get into procurement, procurement planning and inventory management of non-production items, referred to as C-class items, for its clients. This is a step beyond just logistics services. These are proven models of outsourcing in developed markets and can be deployed in India particularly with the transition to GST. As a matter of fact, TVSLSL is exploring option of supplying construction material on ‘just-in-time’ basis or as needed by large construction companies. Essentially, large construction companies may have multiple construction sites in a city. TVSLSL will provide a consolidated storage facility to hold adequate stocks like pipes and electrical fittings which can be moved as needed by the clients, he added.