TVS Supply Chain Solutions (TVS SCS) has acquired Hyderabad-based Swamy & Sons 3PL (S&S3PL) through its subsidiary, FIT 3PL. This acquisition aims to strengthen TVS SCS’s position in the FMCG and FMCD sectors, particularly in Andhra Pradesh and Telangana. S&S3PL, with a revenue of ₹207 crore in FY25, brings strong capabilities and key customer relationships, enhancing TVS SCS’s warehousing and supply chain solutions.
Strategic Acquisition of Swamy & Sons 3PL
TVS Supply Chain Solutions (TVS SCS) has announced the acquisition of Swamy & Sons 3PL Private Limited (S&S3PL), a Hyderabad-based company specializing in 3PL services. The acquisition, executed through TVS SCS’s wholly-owned subsidiary, FIT 3PL, is valued at an enterprise value of ₹88 crore and will be funded through internal accruals. This move is set to bolster TVS SCS’s footprint in the fast-moving consumer goods (FMCG) and fast-moving consumer durables (FMCD) sectors.
Deal Rationale
The acquisition of S&S3PL aligns with TVS SCS’s strategy to strengthen its supply chain platform in India. S&S3PL, known for its expertise in FMCG logistics, brings a strong geographic presence, especially in Andhra Pradesh and Telangana. The deal will expand TVS SCS’s customer base, incorporating leading Indian FMCG and FMCD clients. It also enhances the company’s service capabilities with enhanced regional depth.
Financial Details and Impact
S&S3PL reported an annual revenue of ₹207 crore and a Profit Before Tax (PBT) of 3.2% for FY25. TVS SCS anticipates improved revenue growth and margin profile through operating synergies and scale, leveraging its 20 million sq. ft. of warehousing space. The acquisition is expected to further consolidate TVS SCS’s leadership position in the Indian supply chain services market.
Transaction Timeline and Structure
The Proposed Transaction will be consummated in 2 tranches:
- Tranche 1: Expected to be completed on or before May 28, 2026. Upon completion of Tranche 1, FIT 3PL shall hold 80% of the paid-up share capital of the Target Entity. Consideration for Tranche 1 is INR 70.4 crores.
- Tranche 2: Expected to be completed on or before September 30, 2027. Upon completion of Tranche 2, FIT 3PL shall hold 100% of the paid-up share capital of the Target Entity. Consideration for Tranche 2 is INR 17.6 crores.
Source: BSE
