In what is seen as a well thought out strategy to beef up its global presence, the over $6.6-billion TVS Group has quietly acquired Sheffield-based Rs.200-crore Universal Components (UC) U.K., a leading independent wholesale distributor of commercial vehicle parts and accessories in Britain.
The acquisition is done through TVS Europe Distribution Ltd., a special purpose vehicle. TVS Europe Distribution has bought 90 per cent shares in UC for an undisclosed consideration.
According to R. Dinesh, Joint Managing Director of TVS & Sons, the acquisition is funded through investment by a couple of group outfits — Srichakra Tyres and Associated Auto Parts.
Addressing a press conference here on Tuesday, Mr. Dinesh said the TVS entry would help UC manage the scale and deepen its ties with global suppliers. “We will utilise Universal's marketing expertise and best practices in our businesses in India and other Asian markets,” he added.
Universal Components employs around 100 people and sells both manufacturer-branded parts as well as its own brand of parts. It currently has over 12,000 part numbers and is set to double it in the next 3-5 years.
The UC acquisition, he felt, would help TVS develop its presence in the heavy commercial and light commercial vehicle spare parts range in other Asian markets. David Kernahan, Managing Director of UC, was confident that the alliance with TVS would help bring in ‘low cost country sourcing' for UC. He said UC had plans to scale up the sales to Rs.325 crore.
The UC buy comes in the wake of a successful acquisition of Multipart Holdings in 2009 by TVS Logistics.
Multipart has since been renamed TVS Supply Chain Solutions.
