TVS & Sons has started to reap the benefits of U.K. acquisition that was made about two years ago. It is leveraging the capabilities of Universal Components, a wholesale U.K. auto parts distributor acquired by TVS in March 2012, to upgrade its PartSmart, a franchisee-based auto parts retail business.
After making Universal Components as a global platform to boost its auto parts distribution business, TVS is now enhancing its business in the home market by making PartSmart as an aggregator to parts retail industry in India.
Under the new strategy, TVS is adding Universal Components’ servicing abilities, technology platform, analytical and forecasting expertise and global sourcing capabilities to PartSmart business in India.
“There will be an integrated retail play with lots of value addition,” G Srinivasa Raghavan, CEO and Global President, TVS & Sons told this correspondent.
PartSmart, part of Rs.1500 crore distribution business of TVS & Sons, will cater to retailers, garage owners and fleet operators in the commercial vehicle space.
For retailers, with whom TVS maintains relationship for over five decades, who take up its franchisee, the company seeks to assure lower working capital, expanded parts sourcing and modern retailing with IT systems.
For garages and fleet owners, PartSmart promises to be a one-stop shop for buying good quality and branded spare parts. At the back end, TVS gains supplier sourcing benefits since PartSmart assures a committed group of garage owners and fleet owners for purchase of parts, which will be an attractive business proposition for OEMs.
TVS has planned to open 300 PartSmart stores by the end of next year.
It has already opened a little over 30 stores in Tamil Nadu and intends to take it to 50 by this June. It will initially focus on South before going pan-India.
