CDC Group to invest ₹250 cr in TVS Industrial & Logistics Parks for 40% stake

TVS Industrial and Logistics Parks (TVS ILP), a 50:50 joint venture between TVS Supply Chain Solutions and Ravi Swaminathan Associates, announced recently that it will raise growth capital from CDC Group, the UK’s publicly owned impact investor.

It will be TVS ILP’s first institutional fund-raise. The company didn’t disclose the financial details, but market sources indicated that it is mobilising about ₹250 crore from CDC Group for a 40 per cent stake.

Avendus Capital was the exclusive financial advisor to TVS ILP in the deal. TVS ILP will use the funds to expand operations, thereby creating job opportunities for about 500 people.

“TVS ILP has been consistently growing over the years. To propel the company to the next level of growth, we feel bringing in a strategic investment partner is the ideal next step,” said R Dinesh, Director, TVS ILP.

TVS ILP and CDC said they have a similar vision to bring in the best-in-class environmental and sustainable practices.

Ravi Swaminathan, Director, TVS ILP, said the company has decided to focus on scale and size after having acquired knowledge and capability in the past 15 years of its existence. “We had sought growth capital from investors. We are happy to welcome CDC as our esteemed investor and partner in growth. We understand that this is the first-of-its-kind investment by an impact investor in our industry and are humbled by the confidence shown by CDC in our group,” he said.

TVS ILP has been providing investment-grade warehouses in underserved markets, helping to facilitate trade and transport with efficient logistics facilities.

“This type of business-enabling infrastructure plays a vital role in economic development by connecting regions, enabling economies of scale, and reducing the cost of goods for consumers. Our investment will create 3,000 construction jobs and support the creation of a further 500 jobs during warehouse operations,” said Srini Nagarajan, Managing Director and Head of Asia at CDC.

HBL