TVS SCS, Japan’s Sankyu sign MoU; Sankyu to acquire 0.5% stake
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TVS Supply Chain Solutions (TVS SCS) has signed a strategic Memorandum of Understanding (MoU) with Japan-based logistics and engineering company Sankyu Inc. to jointly pursue opportunities across supply chain and engineering services, as the companies seek to deepen their presence among industrial and manufacturing customers.
As part of the agreement, Sankyu intends to acquire a 0.5% equity stake in TVS SCS, subject to customary regulatory approvals. The partnership will initially focus on India before potentially expanding into markets across Asia, the Middle East and Africa, the companies said on Monday.
Focus on 1,400-plus Japanese companies in India
The collaboration combines TVS SCS’ supply chain capabilities and customer relationships with Sankyu’s engineering expertise and links with Japan’s industrial ecosystem. The companies will explore integrated offerings spanning logistics, warehousing, transportation, engineering services, maintenance and on-site industrial support.
India will be the initial focus, with the partners targeting manufacturing and industrial customers. The companies pointed to the presence of more than 1,400 Japanese companies in India across manufacturing and industrial sectors as a potential addressable opportunity for the partnership.
Over time, TVS SCS and Sankyu plan to evaluate opportunities in other markets where both companies have an established presence, potentially allowing customers to access a wider combination of supply chain and engineering capabilities.
Joint committee to identify growth opportunities
A joint steering committee comprising representatives from both companies will be established to identify business opportunities, oversee strategic initiatives and develop integrated solutions for customers and stakeholders.
“This partnership represents an important step in our strategy to strengthen our capabilities and create greater value for customers,” said R. Dinesh, Chairman, TVS Supply Chain Solutions. He added that Sankyu’s engineering expertise and Japanese industrial relationships complement TVS SCS’ integrated supply chain capabilities.
Sankyu President and CEO Kimihiro Nakamura said the companies have “strong strategic alignment” and that combining their respective strengths would support collective growth in global markets.
TVS SCS, part of the TVS Mobility Group, operates in 26 countries, employs more than 16,500 people and works with 100 Fortune Global 500 customers across sectors including automotive, industrial, consumer, technology, rail, utilities and healthcare. Sankyu, founded in Japan in 1918, has built a business integrating logistics and engineering services, with a significant operational presence across Asia.