TCI Express has announced a significant corporate action involving its parent company, Transport Corporation of India Limited (TCI). The Board of Directors of TCI has approved the sale of 100% equity shares of TCI Global (Singapore) Pte. Ltd. to TCI Express Pte. Ltd., a wholly owned subsidiary of TCI Express. This move is aimed at facilitating TCI Express's expansion in the Singapore region.

Transaction Details

The proposed transaction involves TCI Holdings Asia Pacific Pte. Ltd., a step-down wholly owned subsidiary of TCI, selling its stake in TCI Global Singapore. Here are the key details of the deal:

Strategic Rationale

TCI Express intends to expand its presence in the Singapore region through this acquisition. The company believes that acquiring TCI Global Singapore may be a faster and more cost-effective way to achieve this goal compared to other expansion strategies.

Target Company Profile

TCI Global (Singapore) Pte. Ltd. operates in the logistics industry. Notably, the company has reported nil turnover for the last three years, which may indicate dormant operations or a strategic holding position.

Related Party Aspects

The transaction is classified as a related party transaction due to the following connections:

• Mr. Chander Agarwal serves as both the Managing Director of TCI Express and a Director of TCI Global Singapore.
• All companies involved are related parties through common control by the promoter group.

Despite these connections, the transaction is stated to be conducted on an arm's length basis, ensuring fairness in the deal terms.

Next Steps

The management of TCI Express plans to present the proposal to their Board of Directors for approval at a meeting scheduled for November 6, 2025. The outcome of this meeting, including critical details such as the cost of acquisition and the percentage of shareholding to be acquired, is expected to be disclosed following the board meeting.

Regulatory Compliance

The disclosure of this corporate action is in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No specific governmental or regulatory approvals are required for this acquisition.

This strategic move by TCI Express underscores the company's ambition to strengthen its foothold in the Singapore market, potentially opening up new opportunities for growth in the region's logistics sector. Investors and market watchers will likely be keenly awaiting the final approval and subsequent disclosures to assess the full impact of this acquisition on TCI Express's operations and financial outlook.

TCI Express , a leading logistics firm, is gearing up for a robust second half of the financial year, with ambitious growth plans and strategic expansions on the horizon. The company's optimistic outlook is underpinned by recent government measures and a diversification strategy aimed at capturing emerging market opportunities.

Anticipated Rebound and Growth Targets

TCI Express is projecting a significant rebound in the latter half of the financial year, buoyed by recent government initiatives. Mukti Lal, Executive Director and CFO of TCI Express, cited recent GST cuts and enhanced income tax limits as key drivers for this expected upturn. The company has set its sights on an 8-10% volume growth for FY26, a target that reflects confidence in the market's recovery and the firm's strategic positioning.

Pricing Strategy and Customer Acceptance

In addition to volume growth, TCI Express has implemented price increases, which, according to the company, have been well-received by customers. This dual approach of volume expansion and price adjustment is expected to contribute to the company's revenue growth and profitability.

Diversification and Risk Mitigation

To mitigate business concentration risk, TCI Express is broadening its service offerings. The company is expanding into multimodal services, incorporating rail and air transport alongside its existing road logistics. Additionally, it is venturing into customer-to-customer logistics, signaling a move to capture a wider market share across different segments of the supply chain.

Focus on High-Potential Sectors

TCI Express is strategically targeting high-growth sectors to drive its expansion. The company has identified solar, defense, bathware, and kitchenware as key industries with significant potential. This sector-specific approach allows TCI Express to tailor its services to meet the unique logistics requirements of these growing markets.

Capitalizing on Quick Commerce Trends

Recognizing the rapid growth of the quick commerce sector, TCI Express is positioning itself to service dark stores for FMCG, footwear, and lifestyle products in the B2B segment. This move aligns the company with evolving retail trends and opens up new revenue streams in the fast-paced e-commerce logistics space.

Sustainable Growth Strategy

Mukti Lal emphasized the company's commitment to sustainable and profitable growth, distinguishing TCI Express from newer, tech-driven logistics firms. While many emerging players focus on rapid expansion in the B2C market, TCI Express maintains its focus on the B2B sector, leveraging its established expertise and infrastructure.

SME Sector Boost

The company expects strong performance from small and medium enterprises (SMEs), which are likely to benefit significantly from the recent government measures. This anticipated boost in the SME sector could translate into increased demand for TCI Express's logistics services, further supporting the company's growth projections.

In conclusion, TCI Express is positioning itself for growth through a combination of volume expansion, strategic diversification, and focus on high-potential sectors. The company's optimistic outlook for the second half of the financial year, coupled with its targeted approach to emerging market trends, sets the stage for potentially strong performance in the coming periods.