Chennai, Jan 18 (PTI) TVS Logistics, part of thediversified business conglomerate TVS Group, will take a callon its Initial Public Offering plans in the next three-sixmonths, a top official said here today.
The city-based company, an integrated logistics provider,is planning to tap the capital market as part of raising fundsfor its acquisition plans, TVS Logistics Services Ltd ManagingDirector R Dinesh told reporters.
"The target for the IPO is 2011-12.. In the nextthree-six months we will take a call on the date (for theIPO)..",he said.
The move is part of the logistics company''s plans tobecome the flagship arm of the TVS Group. According to Dinesh,the company is planning to raise about Rs 100-Rs 200 crorethrough the IPO to finance its acquisition plans.
Besides, the company has also set a target of doublingits turnover this year. "In 2009-2010, our turnover was Rs 650crore.. for 2010-11, we are expecting to reach around Rs 1,250crore..", he said.
Dinesh and senior company officials were here to announcetheir acquisition of US-based Manufacturers Equipment andSupply Company (MESCO) for an 100 per cent cash deal.
As part of the acquisition TVS Logistics would make aninvestment of Rs 50 crore, he said.
Through this acquisition the company besides leveragingthe clients of MESCO, would also help expand its presence inthe United States market, he said.
"This acquisition would help handle the supply chainmanagement in the tool and dye business besides increasing thecompany''s presence in North America..", he said.
Dinesh said, at present, 40 per cent of the revenue wascontributed from the domestic market while the remaining camefrom its overseas operation.
In 2007, TVS Logistics acquired 49 per cent stake inanother US firm Global Rush. Dinesh said they had recentlybought the remaining 51 per cent, making the company a 100 percent subsidiary of the TVS Logistics in the United States.
On company''s future plans, Dinesh said they would beexpanding operations in China, South East Asia and Turkey.
"Our ambition is to achieve a turnover of USD 1 billion in2015", he said.