T V Sundararam Iyengar and Sons, a part of the business conglomerate TVS Group, has hived off its group firm MyTVS into a separate company through which it plans to make an investment of Rs 500 crore over the next three years.

The new entity — TVS Automobile Solutions — will have a private equity investment of Rs 78 crore from the Mumbai-based Kitara Capital.

The company has acquired a minority stake of 30 per cent in the new entity, according to the TVS Automobile Solutions Director, Mr R. Dinesh.

This is the second time there has been private equity participation in a TVS Group firm after TVS Logistics Services was hived off in 2008.

Speaking to reporters here about the newly formed company, Mr Dinesh said through TVS Automobile Solutions, it would make an investment of Rs 250 crore over the next three years, while an additional Rs 250 crore would be sought from joint ventures.

“We will require investments of Rs 250 crore. It will be raised by our company. The additional Rs 250 crore will be raised through our joint venture partners...” Mr Dinesh said.

He said the company was “in talks” with three-four companies for entering into a joint venture and a deal is likely to be signed in the next “three to six months’’.

The Chennai-based firm currently has a strong presence in the southern region and the investments through joint venture partners would help it to have a pan-India presence.

About the company’s overseas plans, he said it is already present in Sri Lanka and “is looking at Bangladesh and some Gulf Cooperation Council (GCC) countries’’.

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