TVS Supply Chain Solutions Ltd (TVS SCS) has signed a strategic memorandum of understanding (MoU) with Japan-headquartered logistics and engineering company Sankyu Inc. to collaborate across supply chain and engineering services, with an initial focus on India.
As part of the partnership, Sankyu intends to acquire a 0.5% equity stake in TVS SCS, subject to customary regulatory approvals. The proposed investment will strengthen the strategic alignment between the two companies as they seek to expand their offerings to manufacturing and industrial customers.
The collaboration combines TVS SCS’s integrated supply chain capabilities, market presence and customer relationships with Sankyu’s engineering expertise, logistics capabilities and strong relationships across the Japanese industrial ecosystem.
Expanding supply chain and engineering services
The companies will explore opportunities to offer an integrated portfolio covering logistics, warehousing, transportation, engineering services, maintenance and on-site industrial support.
India will be the initial focus market, where the companies see significant opportunities to support manufacturing and industrial customers with broader and more integrated solutions.
With more than 1,400 Japanese companies operating in India across manufacturing and industrial sectors, the partnership is positioned to address the evolving supply chain and engineering requirements of Japanese businesses while also targeting a wider customer base.
Over time, TVS SCS and Sankyu plan to explore opportunities across Asia, the Middle East and Africa, besides other global markets where both companies have an established presence.
Joint steering committee
To drive the partnership, the companies will establish a joint steering committee comprising representatives from both organisations. The committee will identify growth opportunities, oversee strategic initiatives and support the development of integrated solutions.
“This partnership represents an important step in our strategy to strengthen our capabilities and create greater value for customers,” said TVS Supply Chain Solutions Chairman R Dinesh.
He said Sankyu’s engineering expertise and relationships across the Japanese industrial ecosystem complement TVS SCS’s integrated supply chain capabilities and market presence.
Sankyu Inc President and CEO Kimihiro Nakamura said the partnership brings together two organisations with strong strategic alignment and a shared commitment to high ethical standards.
The companies expect the combination of their respective capabilities to support collective growth in global markets and contribute to sustainable industrial development.
The partnership is expected to provide TVS SCS with an opportunity to deepen its engagement with Japanese industrial customers while adding engineering capabilities to its integrated supply chain portfolio.