TVS Logistics Services, a component of the $2 billion Chennai-based TVS Group, Tuesday announced a joint venture with two Thailand companies for supplying logistics to the automobile parts industry in that country.

The Thai companies in the joint venture are the Thai Martin group, a $75 million investment and holding company, and Tyvin International of the Thai Malleable group - a $50 million company.

The joint venture will be known as TVS Logistics SIAM and has been approved by the Board of Investments, Thailand.

The company will provide necessary support, including manpower, for handling complete sourcing of raw material and parts.

As much as 55 percent of the equity will be with TVS Logistics, and the Thai partners will share equally the remaining 45 percent of investment and profit. The three partners have invested $400,000 in the new venture.

"TVS Logistics SIAM will help TVS consolidate its presence in the ASEAN (Association of South East Asian Nations) region and will be a gateway for Indian and Thailand companies for their complete supply chain logistics," R. Dinesh, executive director, TV Sundram Iyengar & Sons Ltd, told reporters.

The new company will achieve a turnover of Rs.200 million in logistics services in the first year and "facilitate procurement of goods worth Rs.2 billion by Indian companies in its first year of operation", he said.

"We are looking at knowledge management platforms," Dinesh said.

Thai Martin managing director Nash Purswani said: "Our group is engaged in property development, forestry and consolidation services, and with TVS we hope to enter the logistics business."

Director Kamnoon Srethbhakdi of Tyvin International, which has interests in steel, pipes, import and export, said: "We have been in the business for more than 100 years in Thailand. With TVS, we hope to gain expertise in how to bring synergies in capacity utilisation."