Oct 31, 2021

CCI Approves the Acquisition of 35.33% Paid-up Share Capital in TVS Supply Chain Solutions Limited

On August 31, 2021, CCI approved the acquisition of 35.33% of the paid-up share capital in TVS Supply Chain Solutions Limited (‘TVS Supply’) by TS Rajam Rubbers Private Limited (‘Acquirer 1’) and Dhinrama Mobility Solution Private Limited (‘Acquirer 2’) (collectively referred to as ‘Acquirers’) from CDPQ Private Equity Asia Pte. Ltd. (‘CDPQ’).[1]

The Acquirers are wholly owned subsidiaries of TVS Mobility Private Limited (‘TVS Mobility’), which is owned and controlled by the TS Rajam Family. TS Rajam Family holds 25% shareholding in TV Sundram Iyengar & Sons Private Limited (‘TVS & Sons’), the ultimate holding entity of the TVS Group. TVS & Sons is under the decisive influence/ control of the TS Rajam Family, by virtue of shareholding, right to board representation and other rights.

Prior to the proposed transaction, TVS Supply was under the joint control of CDPQ and the TS Rajam Family (TVS & Sons held around 31% shareholding and members of the TS Rajam Family held 0.98% in their individual capacity). Pursuant to the proposed transaction, the TS Rajam Family would be able to exercise greater control over TVS Supply. After completion of post-closing transaction steps, the TS Rajam Family will hold a shareholding in the range of 25-30% in TVS Supply. TVS Supply along with its affiliates is engaged in the provision of logistics services in India and abroad which includes contract logistics, warehousing, transportation, freight forwarding, packaging design and solutions, and material handling and management.

In its competition assessment, CCI considered overlaps between activities of the TS Rajam Family other than TVS Supply with activities of TVS Supply. CCI found a minor horizontal overlap in the market for the provision of logistics services in India (specifically provision of surface transportation services – road and rail). However, considering the existing and greater future control of TVS Supply by the TS Rajam Family, CCI concluded that the proposed transaction was not likely to change competition dynamics significantly. Further, the presence of TS Rajam Family other than through TVS Supply was also not significant enough to cause any AAEC in any plausible relevant market. Similarly, CCI noticed a complementary overlap between Tagbox Solutions Private Limited (‘Tagbox’), an affiliate of the TS Rajam Family, and TVS Supply. Tagbox is engaged in providing artificial intelligence and information technology-based solutions in the logistics sector. However, considering Tahbox’s insignificant market share, CCI concluded that the proposed combination is unlikely to foreclose competition.


[1] Combination Registration No. C-2021/08/860.




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