According to Ramnath Subramaniam, CEO of TVS ILP, the advancement will help it become a billion-dollar platform. It plans to finish building an additional 3 million square feet by the end of CY2023.

The company, which has a presence in 11 cities and operates 7 million square feet of warehouse space, is hoping to expand to 30 cities, including cities outside of metros and Tier 1 cities, according to the CEO.

The focus of storage has mostly been limited to metros and Tier-1 cities, demonstrating the enormous market potential. “We don’t want to restrict ourselves to the metros or the Tier-1 cities and, therefore, we are working on an exhaustive 30-city ambition.”

Contracted revenue

Over the past one to two years, TVS ILP has deployed around $75 to $85 million in CAPEX, which he said, “we plan to continue for the next few years essentially.”

According to the CEO, the majority of the funding comes from a combination of internal accruals, cash from outside sources (banks and other financial organizations), and tenant deposits. Furthermore, he noted, the goal is to seek a liquidation loan every two to three years.

To launch first Invit

“We have assembled transaction teams and other necessary constituents. Barring any unforeseen surprises, we aim to launch the first Invit in the industrial park space during the next financial year (FY24). This is our primary target, while we continue to pursue peripheral debt financing options from lenders.”

Due to the capital-intensive nature of the business, TVS ILP has also investigated funding solutions in recent years. “We successfully completed our first round of funding with BII, followed by CDC joining us in March 2021.”

It now has projects in Vijaywada, Odisha, Vizag, Guwahati, Siliguri, Ranchi, and Raipur, among other places. It has roughly 30 customers in industries such as e-commerce, consumer items, rail transportation, logistics, agricultural and machinery, electronics, and FMCG.

TVS ILP seeks to diversify its customers across all three sectors by building a road, rail, and rocket roadmap.

The company, a joint venture between TVS SCS, a member of the T.S. Rajam family, and Ravi Swaminathan & family, claims to have had zero vacancies at its warehouses for the past six years.