Mahindra and Mahindra, TVS ASL to integrate Mahindra First Choice Service business via share swap deal

The move will enable the stakeholders to combine their strengths to organise the highly-fragmented auto aftermarket services space in India with over 40,000 retailers, 100,000 garages and many small distributors.

MFCSL will partner with TVS ASL, which houses ‘myTVS,’ a multi-brand independent automobile aftermarket brand that offers integrated solutions across the value chain. M&M will secure a stake in TVS ASL and in turn, MFCSL will become a subsidiary of TVS ASL. The transaction is subject to regulatory approvals, including that of the Competition Commission of India (CCI). Once the transaction is through, Mahindra Group will own a “single-digit” minority stake in TVS ASL, G Srinivasa Raghavan, MD, TVS ASL said.

While TVS ASL’s topline was Rs 1,000 cr for FY20, the Mahindra service business entity was Rs 100 cr. “myTVS has created a digital platform and ecosystem for over 2,500 garages especially across south. With MFCSL, we will have an opportunity to create a pan India digital footprint.We will continue to invest and expand our network to over 10,000 garages in the next 18-24 months,” he said. The domestic independent automotive aftermarket has been growing at a CAGR of 7-10 pc over the past five years. MFCSL has a pan-India network of 475+ franchise partners and 100+ distributors across 350 towns in 25 states and 2 union territories. TVS ASL, over time, serves 2 mn plus customers aided by 20,000 retailers, 10,000 garages along with fleet management for over 70,000 vehicles.