TVS acquires 80% share in UK company

As part of its global expansion plans for supply chain and related BPO activities, TVS has been carefully planning and choosing its overseas partners. TVS CJC will be a 80:20 firm, with TVS Automotive Europe Limited (subsidiary of TVS Logistics Services Limited) holding 80 per cent share.

Established in 1989, the family-owned company has been growing steadily in the last 15 years through active support from its clients like Cummins, Case New Holland (CNH), Delphi, Fermec and McCormick, among others. The original promoters will retain the remaining 20 per cent shareholding.

CJ Components is in the business of sourcing components for the auto industry, warehousing and the logistics support-end of the supply chain. It sources components from India as well as low cost European countries on behalf of its clients and offers value-added services as well, like packing, kitting, bar-coding, warehousing, logistics and ''just-in-time'' deliveries. Its sophisticated warehousing facilities with exclusive testing and inspection facilities will be of major value to the Indian company.

According to R. Dinesh, director, TVS Logistics Service Limited, "TVS CJC will act as a gateway for Indian auto component manufacturers to reach out to their clients in UK. TVS Logistics would provide complete supply chain and sourcing related support from India and their other overseas ventures".

"CJC is already servicing its UK clients by sourcing from Spain, Italy, Turkey and India and now its supplier base will be increased by leveraging on TVS'' sourcing capabilities. In India, apart from the TVS group companies, host of other leading auto component manufacturers who are currently supplying to Cummins, CNH, Delphi, Perkins etc., in UK market will be focused for servicing by TVS CJC" said Gillian Jarrett, CEO,TVS CJ Components Limited.

With TVS CJC in UK, TVS Logistics Iberia in Spain and one more joint-venture planned in Germany this year, the European operations of TVS Logistics Services Limited will achieve a turnover of Rs48 crores in 2005 and targeting Rs100 crore by 2006, in line with the company''s projections for achieving an overall turnover of Rs500 crores by 2007.