T V Sundram Iyengar & Sons Ltd. forms new company

T V Sundram Iyengar and Sons limited,the parent company of TVS Group is the Distribution arm of the group with business interest in Dealership for Automobile Vehicles / Construction & Material handling Equipment / Tools & Garage Equipment / Distribution of Automobile Spare Parts and Customer Centric Business under the brand “MyTVS”. MyTVS has attained a clear market position in the targeted segment and created a separate niche for itself, it is now proposed to hive off this business as a separate company by forming a subsidiary of T V Sundram Iyengar and Sons Limited. Business carried out in the name of MyTVS has been transferred to a new company called “TVS Automobile Solutions Limited” (TVS ASL). This company while being a subsidiary of TVS & Sons Ltd will have funding through private equity participation from Kitara Capital. The new company will continue to use the brand name “MyTVS” and from customer perspective there is no change. The company has 2 business verticals: 1. 24 x 7 Emergency Services, there are more than 3000 authorized Service Providers across the nation. 2. All Car Service It is currently having 15 owned and 50 franchisee outlets and it is expected to reach 52 (owned) & 105 (franchisee) in 2013 and 108 (owned) & 315 (franchisee) in 2014. With the high growth in the automotive market, there is a large scale capacity requirement for service and spare parts as well. TVS has been investing in this business for the last so many years and in order to enable scale its growth to the next level, not only has this business been formed as a separate company but also at the same time outside private equity investment has been taken from Kitara Capital, who have invested approximately Rs.78 crore for a significant minority stake in the newly formed company. This is the second time private equity participation has been made in a TVS Group company after TVS Logistics Services in 2008. R Dinesh, Director, TVS Automobile Solutions Ltd said, “TVS has always wanted to grow with the customer as a focus whether it would be B2B or B2C customer. In the case of MyTVS, we are now moving to the next level with the formation of TVS Automobile Solutions Ltd. and the idea is to evolve strong partnerships with vehicle and parts manufacturers and become the bridge with the car owners. TVS’ focus on total employee involvement will be a key enabler for high level of customer satisfaction in this business as well. We are excited that Kitara has understood our business model and will support our growth through not only financial investment but also bringing in new contacts for us to expand our service business in India and the neighboring countries.”