TVS Logistics to acquire Tata Group's logistics firm DIESL

DIESL set up as a 50:50 joint venture between Tata International and Tata Industries has more than 180 warehouses and 6.5 million square foot of storage space primarily for consumer products.

It generated a revenue of Rs 950 crore in last financial year.

"This acquisition is going to help potential customers (for TVS Logistics Services) globally. Currently our India revenue is about Rs 775 crore and 95 percent is from automobile logistics while remaining is from non-auto business. With this deal, non-auto business and auto-business revenue will be equal," TVS Logistics Services MD, R Dinesh told reporters here.

To a query, Dinesh said, "our total revenues (as a group) was Rs 3,000 crore as of March 31, 2015. We should be around Rs 4,000 crore (turn over) company by 2016 (with the acquisition)".

He said, globally 45 percent of the business was contributed from non-auto business while remaining was from automobile business.

Further he said one member would be present from TOF in to the Board of TVS Logistics Services Ltd following the partnership.

He said the acquisition is currently subject to the regulatory clearances including from the Competition Commission of India (CCI).

Asked if there was a possibility of going for an Initial Public Offering, Dinesh said: "next two to three years, there is great visibility. In probable scenario we may go for listing. We will be looking at an IPO. But not immediately."

He said DIESL's warehousing network in North and East India would strengthen the footprint for TVS Logistics Services which has a strong presence in South and Western parts of the country.