TVS Logistics to help transform defence supply chain

The multi billion-dollar Indian aerospace and defence (A&D) sector is a focus market for many Indian and global companies looking to invest and operate here. This year the Defence Expo held in Chennai, inaugurated by Prime Minister Narendra Modi, saw great enthusiasm and participation from both industry and government.

The 10th edition of the biennial event was projected as the first serious attempt to transform India into a hub of military manufacturing and pursue its goal of achieving a turnover of Rs 170,000 crore in military goods and services by 2025. The live demo by the 3 Indian armed forces displaying their prowess with indigenous systems, vindicated what India is capable of. TVS Logistics Services Ltd, part of the US$7 billion TVS Group, was among the few Indian logistics MNCs that participated in this event.

During his inaugural speech, Prime Minister Modi mentioned about the significance of prioritising defence preparedness and reiterated the urgency of India’s quest to become a major manufacturing hub. To achieve this, he emphasised on the efficiency of supply chain as the key factor. The strategic imperative to Make in India, to Make for India and to supply to the world from India was also highlighted. His speech elucidated various other initiatives taken in the defence sector including simplification of SOPs for issue of export authorisations, small and medium sector’s contribution towards defence production which grew by 200%, the launch of IDEX (Innovation for Defence Excellence) across the country, and procurement of 110 new fighter aircrafts.

Defence Minister, Nirmala Sitharaman stated that defence production is the heart of the ‘Make in India’ initiative. Tamil Nadu Chief Minister, E K Palaniswami, added that the state is preparing for the launch of 250 acres for the Aero Defence park. Chief of Army staff, General Bipin Rawat, said that the Indian Army workshops across the country would be opened up for those wanting to see what is happening.

TVS Logistics (through its UK Subsidiary TVS SCS) has a 13-year contract worth $6 billion with the UK Ministry of Defence. As part of the logistics transformation initiative to outsource nonwar commodities and services, TVS Logistics has committed a saving of US $ 650 million (Rs 4200 crore) over the period of the contract. TVS SCS also manages multiple contracts for inventory management and obsolescence management for armoured vehicles fleet, land rover fleet and construction vehicles.

Being an Indian company with an expertise in the defence domain, TVS Logistics can offer its global best practices to the Indian Armed Forces as part of transformational projects. Through their proprietary IT platform, Msys, they have proven ability in handling defence supply chains and can reduce the cost of inventory ownership by simplifying sourcing, procurement, delivery and management of defence commodities and spare parts.

Global defence companies are supporting the ‘Make in India’ indigenisation effort, and TVS Logistics is well placed to support these companies with its capabilities in global freight management, order management / E catalogue / global strategic purchasing, warehousing capabilities, inventory management, manufacturing capabilities and support, spare distribution and last mile transportation, noncore consumables management, repair and maintenance services.

Senior defence personnel like Chief of Integrated Defence Staff to the Chairman Chiefs of Staff Committee (CISC) of the Indian Armed Forces, Director General Ordnance, and Director General perspective Planning, interacted with TVS Logistics Defence Logistics team to get an overview of the company’s defence supply chain readiness.