TVS Automobile Solutions Private Limited (TASL), one of India’s leading independent aftermarket players and part of the $8.5 bn TVS group, has announced strategic partnership with Mitsubishi Corporation (MC), Japan. Mitsubishi will take a substantial minority stake in the company.
The agreement is subject to approval by Competition Commission of India (CCI) & other relevant authorities, said R Dinesh, director, TVS Automobile Solutions.
Mitsubishi Corporation will increase its stake from three per cent to 25 per cent in TASL through a combination of primary investment and secondary purchase. The total investment will amount to Rs 250 crore. It had invested the initial three per cent in TASL last year.
Headquartered in Japan, Mitsubishi Corporation, since 1950’s, has been engaged in the automotive manufacturing, distribution, financing and so on, in Japan and other overseas markets.
Mitsubishi will strive to expand TASL’s business and participate in the growing Indian market through introduction of Japanese automotive parts suppliers, and enhancement of price competitive parts line-ups for TASL. In addition, as a collaboration synergy between MC and TASL, MC aims to deploy TASL’s successful business model in overseas markets and contribute to TASL’s continuous business expansion.
Dinesh said that this strategic investment goes to show the success of TASL as a scalable business model not only in India but also in overseas markets. TASL has also grown profitably and crossed Rs 1300 crore in revenue for 2018-19.
“Together with Mitsubishi, we would be exploring the overseas opportunities in Africa and beyond.”
S Wakabayashi, Senior Vice President, Mitsubishi Corporation, said, “This is an important partnership between two great organisations. Indian automotive aftermarket has grown in double digits consistently for many years now and is expected to grow constantly in the future. With _ TASL’s business know-how and Mitsubishi Corporation’s global expertise, we will mutually have a win-win partnership.”
Source: Business-Standard