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April 19, 2012

TVS Logistics Announces an Investment of INR 2,688 million by KKR and Goldman Sachs

Funds to support continued expansion of logistics business

CHENNAI & MUMBAI, India--(BUSINESS WIRE)-- TVS Logistics Services, India's leading third-party logistics service provider, today announced that it had reached an agreement with an affiliate of Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR") and Goldman Sachs (NYSE: GS) for an investment of INR 2,688 million (approximately US$ 53 million). KKR, a leading global investment firm, will invest INR 2,424 million (approximately US$47 million). Goldman Sachs, a leading global investment bank and initial outside investor in the company, will make an add-on investment. The primary proceeds will be used to further expand the company's logistics business. This is the second time TVS Logistics has successfully received private equity funding. In 2008, Goldman Sachs made an initial investment in the company.

Says Mr. R. Dinesh, Managing Director, TVS Logistics Services, "We decided to go for the second round of funding because we see the market potential and opportunity for us to expand and grow globally. The additional investment will allow TVS Logistics to continue its expansion both through acquisitions and organic growth. Besides growing with our existing customer base, we also look forward to our private equity investors Goldman Sachs and KKR helping us expand our capabilities and geographic footprint."

Mr. S. Ravichandran, Executive Director, TVS Logistics Services, said, "Within the Indian logistics sector, we focus on the auto and discrete manufacturing sectors. These industries are experiencing rapid growth driven by both domestic and export demand and currently have relatively low third-party logistics ('3PL') penetration compared to their global peers. This funding will help us to service our customers even better."

"This investment is in line with our on-going strategy to partner with strong promoter groups and management teams in a sector which builds on and benefits from the Indian industrial uptick. Logistics consolidation in an otherwise fragmented industry and best in class supply chain management are clear areas where KKR, partnering with TVS Logistics, can add a lot of value," said Sanjay Nayar, Member of KKR and Head of KKR India.

"TVS Logistics has demonstrated a strong track record of delivering Just-in-time capabilities to these highly demanding customers," added Heramb Hajarnavis, Director of KKR India.

Sanjeev Mehra, a Managing Director at Goldman Sachs and a Director at TVS Logistics Services, said, "Since our initial investment in 2008, TVS Logistics has demonstrated strong growth and successfully expanded across the globe, acquiring new commercial capabilities and establishing footprints in key geographies to extend its reach throughout North America, Europe and Asia. Goldman Sachs' additional investment in this second round of funding further verifies and symbolizes our conviction in the company's strong future growth prospects."

KKR India now has 15 investment professionals based in Mumbai, focusing both on private equity and non-banking financial services. KKR Capstone also has a dedicated presence in the country. With over US$1 billion invested in India, KKR's flexible approach includes a portfolio of majority and minority stakes in companies, including Aricent, Avantha Power, Bharti Infratel, Cafe Coffee Day, Dalmia Cement, and Magma Fincorp.

Goldman Sachs is active in private equity and principal investing in India. Since 2006, the firm has deployed more than US$2 billion in the country.

Kotak Mahindra Capital Company acted as exclusive financial advisor to TVS Logistics and JM Financial acted as exclusive financial advisor to KKR.

About TVS Logistics

TVS Logistics Services Limited provides logistics solutions across multiple verticals including automotive, distribution, electronics, and discrete component manufacturing. The company focuses on supply chain solutions, warehousing solutions, and asset based value added services including material handling and executive commutation. The company started as a business unit of T V Sundram Iyengar & Sons Limited in the year 1995. This business unit was established as a separate entity, named TVS Logistics Services Limited, in December 2004.

TVS Logistics currently has operations in U.S.A., U.K., Europe, Thailand, etc. For further information, please visit

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with US$59.0 billion in assets under management as of December 31, 2011. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platform. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR's website at

About Goldman Sachs

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

Goldman Sachs has been serving Indian clients since the early 1990s and established an onshore presence in India in December 2006 following a ten-year joint venture. Today, it serves leading corporate and institutional clients through corporate finance (investment banking), equity sales and trading and fixed income securities businesses, as well as providing macro-economic and investment research and asset management services. Goldman Sachs is also active in private equity and principal investing in India, deploying more than US$2 billion in capital since 2006. In addition, the firm's 3,500-person Bangalore office provides critical support and service functions for Goldman Sachs around the world.

TVS Logistics Services Ltd.
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Source: KKR & Co. L.P.

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