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TVS SCS Subsidiary to Acquire Swamy & Sons 3PL for ₹88 Crore
TVS Supply Chain Solutions' subsidiary, FIT 3PL, has signed definitive agreements to acquire 100% of Swamy & Sons 3PL for an enterprise value of ₹88 crore. The acquisition will be executed in two tranches, with an initial 80% stake for ₹70.4 crore by May 2026 and the remaining 20% by September 2027. The target entity reported a consolidated turnover of ₹207.1 crore in FY25 with a 3.2% PBT margin. This strategic move is aimed at strengthening TVS SCS's leadership in the FMCG and FMCD logistics sectors, specifically in South India.
Key Highlights
Acquisition of 100% stake in Swamy & Sons 3PL for a total enterprise value of ₹88 crore.
Target entity reported FY25 revenue of ₹207.1 crore, indicating an attractive acquisition multiple of approximately 0.42x Sales.
Tranche 1 involves an 80% stake purchase for ₹70.4 crore, expected to close by May 28, 2026.
The deal will be funded entirely through internal accruals, maintaining a stable debt profile.
Strengthens regional execution capabilities and distribution networks in Telangana and Andhra Pradesh.
💼 Action for Investors
Investors should view this as a positive expansion that adds scale to the high-growth 3PL segment at a reasonable valuation. Monitor the company's ability to improve the target's 3.2% PBT margin through operational synergies and warehousing scale.
TVS SCS Subsidiary to Acquire Swamy & Sons 3PL for ₹88 Crore
TVS Supply Chain Solutions' subsidiary, FIT 3PL, has entered into an agreement to acquire 100% of Swamy & Sons 3PL for an enterprise value of ₹88 crore. The acquisition will be executed in two tranches, with an initial 80% stake to be acquired by May 2026 and the remaining 20% by September 2027. The target entity reported a consolidated turnover of ₹207.1 crore for FY25 with a PBT margin of 3.2%. This strategic move is aimed at strengthening TVS SCS's presence in the FMCG and FMCD sectors, particularly in Andhra Pradesh and Telangana.
Key Highlights
Acquisition of 100% stake for a total cash consideration of ₹88 crore funded via internal accruals
Target entity Swamy & Sons 3PL reported FY25 revenue of ₹207.1 crore
Tranche 1 (80% stake) valued at ₹70.4 crore to be completed by May 28, 2026
Tranche 2 (remaining 20% stake) valued at ₹17.6 crore to be completed by September 30, 2027
Strategic expansion into FMCG logistics with deep regional depth in Telangana and Andhra Pradesh
💼 Action for Investors
This is a positive inorganic growth move at a reasonable valuation of approximately 0.42x Price-to-Sales. Investors should monitor the company's ability to improve the target's 3.2% PBT margins through operational synergies.