The acquisition will provide TVS Logistics access to CJC's pool of clients, which include Cummins, Case New Holland, Delphi, Fermec and McCormick.
The entity is already in talks with other clients like Land Rover, JCB and Perkins. The company clocked a turnover of Rs 8.5 crore (Rs 85 million) in 2004.
The company has now been renamed TVS CJ Components Limited, with TVS Logistics' subsidiary TVS Automotive Europe Limited holding 80 per cent share.
The remaining equity will continue to be held by the founders of CJC -- the Jarett family. The existing management at CJ Components will continue, said R Dinesh, executive director, T V Sundaram Iyengar and Sons, apex company of the group. It's very important to have a local face, he added.
"CJC's part will be to assist in marketing, maintaining customer relationships and building fresh customer relationships, mainly in the UK. TVS Logistics will handle the entire supply chain from India. This would provide the clients with an end-to-end supply chain," said Dinesh.
CJC's line of business includes sourcing of components for the auto industry and offering warehousing and logistics support in managing the supply chain.
They also source components from India and other low cost European countries and offer other services like packing, knitting, barcoding and warehousing and 'just-in-time' deliveries.
TVS Logistics plans to achieve a turnover of Rs 48 crore (Rs 480 million) in 2005 from its European operations, which will include revenues from its operations in Spain TVS Logistics Iberia, another joint venture planned in Germany this year and a Rs 16 crore (Rs 160 million) contribution from TVS CJC.
It hopes to double this turnover to Rs 100 crore (Rs 1 billion) by 2006 and achieve an overall turnover from both its Indian and overseas operations of Rs 500 (Rs 5 billion) by March 2007.
