TVS Supply Chain, Japan's Sankyu join hands to expand supply chain, engineering services; shares jump 8%

TVS Supply Chain Solutions has signed a strategic memorandum of understanding (MoU) with Japan-headquartered Sankyu Inc. to collaborate across supply chain and engineering services, as the two companies seek to unlock growth opportunities across key industrial sectors.

TVS Supply Chain Solutions shares rose as much as 8.08% on Monday after the announcement. The stock was trading at Rs 131.25 per share as of 10:48 am on the BSE.

Under the MoU, Sankyu intends to acquire a 0.5% equity stake in TVS Supply Chain Solutions, subject to customary regulatory approvals. The partnership will initially focus on India, where the companies plan to support manufacturing and industrial customers through a broader range of supply chain and engineering services.


The collaboration will combine TVS Supply Chain Solutions' supply chain capabilities, market presence and customer relationships with Sankyu's engineering expertise, logistics capabilities and long-standing relationships across the Japanese industrial ecosystem.

The companies will explore opportunities spanning logistics, warehousing, transportation, engineering services, maintenance and on-site industrial support. The partnership could subsequently expand to markets across Asia, the Middle East and Africa, as well as other global markets where both companies have an established presence.

With more than 1,400 Japanese companies operating in India across manufacturing and industrial sectors, the companies see potential to support their evolving supply chain and engineering requirements while also serving a wider customer base.

"This partnership represents an important step in our strategy to strengthen our capabilities and create greater value for customers. Sankyu's engineering expertise and deep relationships across the Japanese industrial ecosystem complement TVS Supply Chain Solutions' integrated supply chain capabilities, strong customer relationships and market presence. We share a strong commitment to long-term value creation, and together we are well positioned to deliver more comprehensive solutions, support the evolving needs of manufacturing and industrial customers, and unlock new growth opportunities across India and other strategic markets," R. Dinesh, Chairman, TVS Supply Chain Solutions, said.

Sankyu President and CEO Kimihiro Nakamura said, "Since our inception in 1918, Sankyu has been dedicated to supporting the progress of the manufacturing sector, underpinned by our core philosophy of valuing our people. We are profoundly honoured to enter into this partnership with TVS SCS, an organisation that shares our philosophy and commitment to the highest ethical standards. Our two companies possess a strong strategic alignment, and by integrating and complementing our respective strengths, we look forward to achieving collective growth in the global market and contributing to sustainable industrial development."

The companies will establish a joint steering committee comprising representatives from both organisations to identify growth opportunities, oversee strategic initiatives and support the development of integrated solutions for customers and other stakeholders.