TVS ILP Raises Institutional Fund Worth Rs.400 crore from CDC

TVS Industrial and Logistics Parks is a 50:50 joint venture between TVS Supply Chain Solutions and Ravi Swaminathan associates, today announced that it would aid in rising 'growth capital' from CDC Group. However, ILP and the CDC have not disclosed any financials.

Although TVS ILP and CDC have not disclosed any financials, the sources close to the company have raised Rs.400 crore by diluting a 40 percent stake. Avendus Capital is the exclusive financial advisor to TVS Industrial and Logistics Parks on its fundraise from CDC Group.
Ravi Swaminathan, Director, TVS Industrial & Logistics Parks Pvt Ltd. says, “Having acquired knowledge and capability in the past 15 years of our existence, we decided to focus on scale and size. To achieve this, we had sought growth capital from investors".

It is the first time that TVS ILP has raised institutional investment. CDC will become a significant minority shareholder in the business.
R Dinesh, Director, TVS Industrial & Logistics Parks Pvt Ltd, said that TVS ILP has been consistently growing over the years. To propel the company to the next level of growth, the company feels bringing in a strategic investment partner is the ideal next step.

This is the first-of-its-kind investment by an impact investor in the industry, Swaminathan claimed.

Srini Nagarajan, Managing Director and Head of Asia at CDC, states, “The company (TVS ILP) is playing a key developmental role by providing investment-grade warehouses in underserved markets, helping to facilitate trade and transport with efficient logistic facilities.“

He further continued that this type of business-enabling infrastructure plays a crucial role in economic development by connecting regions, enabling economies of scale, and reducing the cost of goods for consumers.

TVS Infrastructure and Logistics Parks was set up in 2005 to support the Group’s supply chain initiatives by providing core industrial infrastructure for manufacturing, distribution, and sales.

The investment will create 3,000 construction jobs and support the creation of another 500 employment opportunities during warehouse operations. Constructed to EDGE advanced green building standards, the warehousing will also minimize greenhouse gas emissions and support climate change mitigation.