TVS Auto Solutions to acquire Mahindra First Choice Services

Chennai-based TVS Automobile Solutions Ltd (TVSASL) and auto and farm equipment major Mahindra & Mahindra (M&M) have entered into an agreement under which the former will acquire 100 per cent stake in Mahindra First Choice Services (MFCSL), a pan-India chain of multi-brand car and two-wheeler service company.

M&M, in turn, will pick a minority stake in TVSASL.

The financial details were not disclosed citing pending Competition Commission of India approval.

TVSASL, a ₹1,000-crore-plus company, has emerged a leader in the automotive after-market segment, while MFCSL reported a revenue of ₹107 crore in FY20.

“I am delighted with this deal as two great brands have come together for the benefit of the overall after-market ecosystem,” R Dinesh, Director, TVSASL, said in a press statement.

Strong network

“The acquisition of MFCSL is expected to strengthen TVSASL as a much stronger pan-India player. Though both have networks across the country, TVSASL has a very strong network in the South, while MFCSL has a well-established network in the West, North and in some parts of the East. Also, MFCSL’s process and digital capabilities will strengthen TVSASL’s overall expertise,” said G Srinivasa Raghavan, Managing Director, TVSASL, addressing the media in a virtual meeting.

MFCSL has a pan-India network of over 470 franchise partners and over 100 distributors in more than 350 towns across 25 States and two Union Territories. TVSASL’s network includes 20,000 retailers, 10,000 garages along with fleet management for over 70,000 vehicles. Post-completion of the transaction, MFCSL will become a subsidiary of TVSASL.