TVS Supply Chain Solutions (TVSSCS) has announced the acquisition of Swamy & Sons 3PL Services Private Limited (S&S3PL) for INR 88 Cr, through its subsidiary FIT 3PL Warehousing Private Limited. This acquisition strengthens TVSSCS’s position in the FMCG and FMCD sectors, increasing its India consumer sector mix to 25%. The transaction, expected to close in Q4 FY26, will be funded through internal accruals and is EBITDA, PBT, and RoCE accretive.
Strategic Acquisition Overview
TVS Supply Chain Solutions (TVSSCS) is set to acquire Swamy & Sons 3PL Services Private Limited (S&S3PL) for INR 88 Cr. The acquisition will be executed through TVSSCS’s wholly-owned subsidiary, FIT 3PL Warehousing Private Limited. This strategic move is aimed at bolstering TVSSCS’s presence and capabilities in the FMCG supply chain sector.
Financial Details and Rationale
The transaction enterprise value is INR 88 Cr, with an EV/FY25 EBITDA multiple of 4.7x and a PAT multiple of 14.5x. The acquisition is expected to be EBITDA, PBT, and RoCE accretive to TVSSCS. S&S3PL generates more than 70% of its FY25 revenues from the India FMCG sector. This acquisition will increase TVSSCS’s India consumer-sector mix from 18% to 25% on a pro forma FY25 basis.
S&S3PL Capabilities
S&S3PL brings to TVSSCS deep expertise in FMCG supply chains, along with a strong geographic reach, particularly in Andhra Pradesh and Telangana. S&S3PL has 116 warehouses, covering a total area of approximately 4 mn sft. It operates across 5 states, including Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Delhi. FY25 Revenues for S&S3PL are Rs. 207 Cr with an EBITDA of Rs 18.9 Cr representing a margin of 9.1%.
Future Integration and Leadership
Mr. Arun Swamy, promoter of S&S3PL, will continue to lead the business, overseeing the integration plan and supporting new business development. The transaction is structured in two tranches, with 80% of the equity value acquired on closing and the remaining 20% to be acquired post the FY27 audit.
Source: BSE
