TVS Supply shares jump nearly 6% as Japan's Sankyu plans stake buy

TVS Supply Chain Solutions Ltd shares surged 8 per cent in Monday's trade after the company signed a strategic Memorandum of Understanding (MoU) with Japan-headquartered logistics and engineering company -- Sankyu Inc -- to collaborate across supply chain and engineering services. As part of the MoU, Sankyu intends to acquire a 0.5 per cent equity stake in TVS Supply, subject to customary regulatory approvals.

Following the development, the TVS Supply's stock jumped 8.43 per cent to hit a high of Rs 131.70 on BSE over its previous close of Rs 121.45.

The partnership will combine TVS Supply's supply chain capabilities, market presence and customer relationships with Sankyu's engineering expertise, logistics capabilities and relationships across the Japanese industrial ecosystem. The companies will explore opportunities across logistics, warehousing, transportation, engineering services, maintenance and on-site industrial support.

The collaboration will initially focus on opportunities in India, where both companies see potential to support manufacturing and industrial customers through a broader range of supply chain and engineering services. The companies said the partnership could eventually expand into markets across Asia, the Middle East and Africa.

TVS Supply said more than 1,400 Japanese companies operate in India across manufacturing and industrial sectors, providing an opportunity for the partnership to support their evolving supply chain and engineering requirements.

To drive the collaboration, 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 for customers and other stakeholders.

TVS Supply operates in 26 countries with over 16,500 employees and works with 100 Fortune Global 500 customers, according to the company.