CHENNAI: TVS Supply Chain Solutions Limited (TVSSCS, BSE:543965, NSE:TVSSCS), a leading global supply chain solutions provider, has announced the acquisition of Hyderabad-based Swamy & Sons 3PL Private Limited (S&S3PL), significantly boosting its presence in the high-growth Fast-Moving Consumer Goods (FMCG) logistics sector.
The definitive agreement was executed by TVSSCS's wholly-owned subsidiary, FIT 3PL Warehousing Private Limited.
Key Transaction Details
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Enterprise Value: INR 88 Crores
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Financial Multiple: The deal values S&S3PL at 4.7x its FY25 EBITDA.
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Acquisition Structure: 100% equity share capital will be acquired in two tranches—80% on closing and the remaining 20% post-FY27 audit.
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Funding: Entirely through internal accruals.
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Expected Closure: Q4 of FY26 (January-March 2026).
Strategic Rationale
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Sectoral Strengthening: S&S3PL derives over 70% of its FY25 revenue from the FMCG sector. This acquisition will increase TVSSCS's India consumer-sector revenue mix from 18% to 25% on a pro-forma FY25 basis.
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Geographic Expansion: S&S3PL operates 116 warehouses across approximately 4 million square feet in five states, with strong leadership in Andhra Pradesh and Telangana. This complements TVSSCS's pan-India network of nearly 20 million square feet.
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Financial Accretion: The transaction is stated to be immediately accretive to TVSSCS's EBITDA, Profit Before Tax (PBT), and Return on Capital Employed (RoCE).
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Synergy Potential: TVSSCS anticipates cost savings and operational synergies through the integration of manpower, technology platforms, and the consolidation of support functions.
Management Commentary
Mr. Sukumar K, CEO – India, Middle East, and Africa, TVSSCS, stated, “This acquisition is a strategic step... S&S3PL’s deep expertise in FMCG supply chains...enhance our ability to serve large customers. It positions TVSSCS to be among the top warehousing 3PL service providers in India.”
Leadership Continuity: Mr. Arun Swamy, promoter of S&S3PL, will continue to lead the integrated business, manage the integration plan, and support new business development.
Company Overview
Target: Swamy & Sons 3PL (S&S3PL)
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Part of the 55-year-old, family-owned Swamy Sons Group.
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FY25 Revenue: INR 207 Crores; FY25 EBITDA: INR 18.9 Crores (9.1% margin).
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Core services: Warehouse management and secondary transportation/distribution for leading FMCG players.
Acquirer: TVS Supply Chain Solutions
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A tech-driven, integrated supply chain solutions provider with end-to-end capabilities across manufacturing, aftermarket, and consumer sectors.
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Global footprint across four continents with a significant warehousing and employee base in India.
Advisors: TVSSCS engaged PwC for financial due diligence and Khaitan & Co. as legal advisors for the transaction.
Market Reaction: The announcement is likely to be viewed positively by investors as it reinforces TVSSCS's domestic growth strategy in the resilient consumption-led logistics segment.