As part of the MoU, Sankyu intends to acquire an equity stake of 0.5 per cent in TVS SCS, the company said in a statement.
The collaboration will initially focus on opportunities in India, where both companies see significant potential to support manufacturing and industrial customers through a broader range of supply chain and engineering services. With more than 1,400 Japanese companies operating in India across manufacturing and industrial sectors, the partnership is well positioned to support their evolving supply chain and engineering requirements while also serving a wider customer base.
The partnership brings together the extensive supply chain capabilities of TVS SCS, strong market presence and deep customer relationships with Sankyu’s engineering expertise, logistics capabilities and long-standing relationships across the Japanese industrial ecosystem, it said.
By combining complementary strengths, the companies will explore opportunities to deliver enhanced value through a broader portfolio of solutions spanning logistics, warehousing, transportation, engineering services, maintenance and on-site industrial support., the statement added.
Over time, the collaboration is expected to expand into other markets across Asia, West Asia and Africa. The companies will also explore opportunities in other global markets where both have an established presence, leveraging each other’s capabilities to create additional value for customers.
“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, R Dinesh, Chairman, TVS Supply Chain Solutions, said.
“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,” he said.
“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,” Kimihiro Nakamura, President and CEO, Sankyu, said.
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 aimed at delivering enhanced value to customers and other stakeholders.
