MyTVS, a part of TVS group will now be separated from group and will be converted in to a altogether different company called TVS Automobile Solutions Ltd. Economic times reports that through this new company TVS group plans to make an investments of 500 crores over the next three years.
There is more news to this TVS Automobile Solutions regarding the investment part. It is rolled out that this new company will have a 78 crore private equity investments from Mumbai based Kitara Capital. It is also reported that Kitara capital will acquire a minority stake in the company. This is the second instance when private equity partition has been made in TVS Group of Companies; the first one was back in 2008 in the form of TVS Logistics Services.
The newly formed company TVS Automobile Solutions will however continue to use brand name MyTVS. Speaking on the separation Mr. Dinesh.R (Director) said that the new company will invest 250 crores over the next three years and another 250 Crore would be invested in joint ventures, thus the company will invest altogether 500 crores over the next three years.
Mr. Dinesh further said that the company is glad that Kitara Capital understood their project and will help them not only with the investments but also with building new business contacts, thus helping the new company to sprout its branches not only in India but also neighboring countries. Since TVS Automobiles Solutions is a Chennai based firm, it is ought to have good presence in southern region. The company officials believe that the cooperation and investments made by the investors will help the firm in upbringing their name in whole of India.
Speaking on joint venture partners Mr.Dinesh said that the company has already shortlisted three to four partners and are presently involved in talks with them. He said that the contract will be signed anywhere in the next three to six months time. He said that the industry has got huge earning potential and they plan to achieve a turnover of 460 crores by 2014.
As far as capturing whole of India is concerned, Dinesh said that the company will focus on four states each in Northern and Southern region, the state count will eventually grow with time. The newly formed company also has plans for Bangladesh and some Gulf countries.
The company has 2 business verticals, the first one being 24×7 Emergency Services’ with more than 3000 authorized service providers across the nation and ‘All Car Service’ currently having 15 owned and 50 franchisee outlets. The company expects the count to reach 52 (owned) & 105 (franchisee) in 2013 and 108 (owned) & 315 (franchisee) in 2014.