TVS Automobile Solutions Ltd., a subsidiary of TVS & Sons, is planning to mark its presence in the overseas market for multi-brand car servicing leveraging on its logistics arm.
Addressing a press conference here on Tuesday, R. Dinesh, Joint Managing Director, said that by 2015, TVS ASL was targeting close to 500 outlets of which 125 would be joint ventures and the rest franchises.
It had 65 outlets in February 2011, when the business, (carried out under the brand My TVS) was spun off into a subsidiary called TVS Automobile Solutions Ltd. TVS & Sons supplemented their own kitty of Rs. 45 crore for TVS ASL with an equity infusion of around Rs. 78 crore through Kitara Capital of Mauritius. About 70 per cent of the first dose of PE has already been utilised, it is learnt. It is now exploring the possibility of tapping private equity, among other funding options, as it increases focus on its youngest company and looks to scale up in operations.
TVS ASL has already invested about Rs. 150 crore and would need an investment of Rs. 500 crore for its expansion. It was learnt that the company is exploring several options for meeting its fund need, including issuance of debentures and raising equity through its joint venture partners.
It has two business verticals — 24x7 emergency services and all-car service through current network of outlets
“ We have planned a unique model which does not get into competition with any vehicle manufacturer”, Mr R Dinesh, a fourth generation member of the family and Joint Managing Director of T V Sundram Iyengar & Sons Ltd said. Mr Dinesh and Mr Srivatchan, President TVS ASL were here to launch a joint venture with the city-based Rajgharia group.
“This is one of the initial JVs formed for marking a pan-India presence” the company said. The company is trying to foray beyond the four southern states, aiming to have 100 outlets by 2015 across India.
At present, TVS & Sons is engaged in four businesses including vehicle distribution, parts distribution, logistics and after-sales service. The total turnover is targeted to increase from Rs. 8000 crores in the last fiscal to Rs. 10000 crores in the current fiscal. Mr Dinesh said that the presence of TVS Logistics in the U.S., the U.K. and Europe and in the two-wheeler distribution outlets in Sri Lanka and Bangladesh, might be explored for TVS ASL .
Launches a joint venture with the city-based Rajgharia group