VS Logistics to acquire DIESL

Chennai:

TVS Logistics (TVSL) along with Tata Opportunities Fund is set to
acquire Tata group firm Drive India Enterprise Solutions (DIESL) for
an undisclosed amount.



Addressing reporters here, TVS Logistics Services MD, R Dinesh said
that Tata Opportunities Fund, the private equity fund advised by Tata
Capital will fund TVS Logistics Services with amount of about Rs 250
crore to acquire DIESL.



As part of the deal, Tata Opportunities Fund will get a minority
equity stake in TVS Logistics.



DIESL is a 50:50 joint venture between Tata International and Tata
Industries. It has more than 180 warehouses and 6.5 million square
foot of storage space primarily for consumer products and generated a
revenue of Rs 950 crore last financial year.



With this acquisition, TVS Logistics will have a diversified base,
said Dinesh. He said that the total revenue of the company last year
was rs 3,000 crore and by the acquisition , it is expected to be
around Rs 4,000 crore.



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



Dinesh also did not rule out the possibility of going for an Initial
Public Offering. “We will be looking at an IPO,” he said