TVS Supply Chain Solutions Shares Jump 7% After Securing Three-Year Daimler India Contract

TVS Supply Chain Solutions shares surged nearly 7% to reach an intraday high of ₹114, rising from the previous day's close of ₹106.22, after securing a significant three-year contract from Daimler India Commercial Vehicles. The smallcap stock, with a market capitalisation of ₹4,963 crores, is currently trading at a P/E ratio of 41.90 compared to the industry average of 24.00.

Contract Details and Operational Scope

The three-year agreement involves managing complete in-plant warehouse operations at Daimler India's Chennai manufacturing facility. Under this contract, TVS Supply Chain will handle the entire flow of components within the plant, covering storage, movement, and inventory management to ensure smooth production operations with reduced delays.

Parameter:	Details
Contract Duration:	3 years
Client:	Daimler India Commercial Vehicles
Location:	Chennai manufacturing facility
Workforce Deployment:	700 employees
Services:	Complete in-plant warehouse operations

The company plans to deploy approximately 700 employees for this project, demonstrating the substantial scale and long-term nature of the engagement. The operations will incorporate advanced technology solutions including real-time tracking systems, automation tools, and data-driven planning mechanisms to minimise manual intervention and enhance operational efficiency.

Financial Performance and Business Metrics

TVS Supply Chain Solutions operates across multiple sectors, with Industrial, Automotive, and Technology & Infrastructure segments contributing significantly to revenue. The company maintains a diversified portfolio with strong presence in consumer products, railways, utilities, and healthcare sectors.

Sector:	Revenue Contribution (%)
Industrial:	29.14%
Automotive:	24.93%
Tech & Tech Infra:	12.82%
Consumer:	12.75%
Rail and Utilities:	7.89%
Healthcare:	2.00%

The company reported mixed financial results for the recent period, with revenue growth offset by margin pressures. Revenue from operations increased by 6% to ₹2,663 crores from ₹2,513 crores in the previous year. However, operating profit declined 4.2% to ₹182 crores from ₹190 crores, while net profit showed strong recovery, rising 45% to ₹16 crores from ₹11 crores.

Business Pipeline and Growth Outlook

TVS Supply Chain Solutions maintains robust growth prospects with an active business pipeline valued at ₹6,200 crores. The company achieved healthy new contract wins worth 8.10% of Q2 FY25 revenue, reflecting sustained customer confidence and market demand for its services.

Operational Metric:	Value
Active Pipeline:	₹6,200 crores
Warehouse Space:	19.90 million sq ft
Permanent Employees:	13,012
New Wins (% of Q2 FY25 Revenue):	8.10%
Target PBT by Q4 FY27:	4.00%

The Daimler contract strengthens TVS Supply Chain's position as a trusted logistics partner for major automotive manufacturers and reinforces its capability to handle complex, large-scale operations. With strict execution discipline and cost management focus, the company remains committed to achieving its medium-term profitability target of 4% PBT by Q4 FY27.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.68%	-3.05%	-0.35%	-18.48%	-28.86%	-45.74%

TVS Supply Chain Solutions Ltd has secured a significant three-year contract from Daimler India Commercial Vehicles (DICV) to manage comprehensive in-plant warehouse operations at DICV's manufacturing facility in Chennai. The strategic partnership, announced on January 12, represents a major business win for the logistics solutions provider.

Contract Details and Deployment

The engagement involves substantial operational commitment from TVS Supply Chain Solutions, with the following key parameters:

Parameter	Details
Contract Duration	Three years
Employee Deployment	Approximately 700 TVS SCS personnel
Facility Location	Chennai manufacturing facility
Scope	End-to-end warehouse operations

Under the agreement, TVS SCS will handle comprehensive warehouse operations within the facility, focusing on ensuring smooth material flow, optimised inventory management, and improved operational efficiency to strengthen DICV's production ecosystem.

Technology Integration and Advanced Solutions

The warehouse management services will leverage cutting-edge technologies to enhance operational performance:

IoT-based tracking systems for real-time visibility across operations
Automation-led systems designed to reduce manual handling requirements
Predictive analytics capabilities for smarter planning and decision-making
Digital dashboards providing centralised performance monitoring

These technological capabilities are designed to support DICV's focus on efficiency and quality while strengthening their overall production ecosystem.

Management Commentary

Sukumar K, CEO of India & MEA at TVS Supply Chain Solutions, highlighted the company's positioning for the engagement: "Our global experience with Daimler, combined with our expertise in in-plant logistics, automation-led operations, and real-time visibility solutions, positions us well to drive measurable efficiencies. We look forward to further strengthening their production ecosystem and supporting their commitment to world-class manufacturing."

C Muthu Maruthachalam, President & Chief Operating Officer at Daimler India Commercial Vehicles, emphasised the partnership's strategic importance: "Efficient in-plant logistics is vital to our production success. Partnering with TVS Supply Chain Solutions allows us to leverage their proven expertise and technology-driven approach to enhance our operational performance."

Market Performance

Shares of TVS Supply Chain Solutions Ltd closed at ₹106.49 on January 12, declining by ₹0.66 or 0.62% on the BSE. The contract announcement comes as the company continues to expand its logistics and supply chain management operations across various industrial sectors.