TVS Supply Solutions shares rise 8% on extension of contract with Rolls Royce for 5 years

Shares of TVS Supply Solutions Ltd rose 8% intraday after the global supply chain solutions provider said that its contract with Rolls-Royce has been extended for five years until 2029. TVS Supply Solutions stock rose 7.86% to Rs 205 on BSE. Market cap of the firm rose to Rs 8,808.23 crore. Later, the stock ended 5.34% higher at Rs 200.20 on BSE. A total of 4.55 lakh shares of TVS Supply Solutions changed hands amounting to a turnover of Rs 9 crore.

The stock fell to its 52-week low of Rs 178.65 on February 14, 2024 and rose to a 52 week high of Rs 257.95 on September 11, 2023. 

The extension relates to the advanced Parts Distribution Centre (PDC) located in Singapore, which serves the Asia Pacific markets for Rolls-Royce's Power Systems business unit.

"We are delighted to continue our partnership with Rolls-Royce and contribute to the success of their Parts Distribution Centre in Singapore," said Vittorio Favati, CEO TVS SCS Global Forwarding Solutions.

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"The renewal of this contract is a testament to the efficiency and reliability of our tailoredsupply chain solutions. We look forward to further enhancing the operational excellence of the PDC and supporting Rolls-Royce's continued growth in the Asia Pacific region."

Giovanni Spadaro, President, Global Markets Rolls-Royce Power Systems, and Managing Director, Rolls-Royce Solutions Asia, said, "The extension of this contract for an additional five years underscores the shared commitment of both companies to achieving strategic objectives and desired outcomes, further solidifying the foundation for continued growth and operational excellence in the region." 

TVS Supply Chain Solutions, promoted by the erstwhile TVS Group and now part of TVS Mobility Group, provides specialised solutions spanning the entire value chain from sourcing to consumption, to reduce complexity in its customers' supply chains by using technology, data analytics and execution experience. TVS Supply Chain Solutions went public in August 2023.