TVS Supply Chain Solutions stock jumps 9% after company secures 5-year contract with Daimler Truck AG

Shares of TVS Supply Chain Solutions, one of the largest and fastest-growing integrated supply chain solutions providers in India, gained nearly 9% in today's early trade after the company won a new 5-year strategic contract with Daimler Truck Southeast Asia Pte Ltd, a Daimler Truck AG company, for Integrated Supply Chain Solutions (ISCS) service in Singapore. 

"This contract solidifies TVS SCS as a primary logistics partner for Daimler Truck AG, the world's largest manufacturer of commercial vehicles, reinforcing the organisation's commitment to delivering exceptional logistics services between Germany and the Asia-Pacific region. Daimler Truck South East Asia conducted a thorough evaluation process before awarding TVS SCS with the opportunity to provide these new services," the company said in its Tuesday's exchange filing. 

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The collaboration between TVS SCS and Daimler Truck South East Asia aims to establish a robust logistics solution for distributing spare parts and related items and streamline supply chain operations, servicing Daimler Truck South East Asia's distributor network, dealers, and workshops in 16 countries in the Asia-Pacific region from its strategic logistics center in Singapore. 

The company has announced its commitment to deliver a tailored IT solution suite, focusing on a customized online platform designed to offer inventory visibility and ordering convenience for Daimler Truck Parts Centre (DTPC) Southeast Asia customers.

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Additionally, the IT solution provider will furnish DTPC SEA with an integrated capability encompassing inventory management, parts replenishment ordering, parts pricing, invoicing, and data analytics.

TVS Supply Chain Solutions is engaged in the development of the supply chain solutions market in India. For the last two decades, TVS SCS has managed large and complex supply chains across multiple industries in India and select global markets through customized tech-enabled solutions. The company was promoted by the erstwhile TVS Group and is now part of the TVS Mobility Group.

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In the quarter ending in March, the company's revenue from the Integrated Supply Chain Solutions (ISCS) segment showed a 9.9% year-over-year improvement, reaching ₹1,380 crore. Similarly, for the fiscal year 2023–24, it surged by 14.4% year-over-year to ₹5,240 crore.

The company attributes this growth to robust business drivers, including strong execution, customer additions, and increased wallet share. Looking ahead, the company anticipates the momentum in ISCS to persist into fiscal year 2025, backed by a healthy pipeline and sustained focus on margins.

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