Chennai: TVS Automobile Solutions, promoter of MyTVS brand, has forayed into the eastern and western markets with an aim to have a pan-India presence by year-end, a top company official said on Thursday.
“Our plan is to have 100 of our own workshops and 300 franchise workshops. That is the kind of expansion and for that we took finance from private equity capital of about Rs 78 crore,” TVS Automobile Solutions President, R Srivatchan told PTI here.
“We have to start having a presence in other geographies. It will be like having our own workshops in big markets and smaller markets will have franchise outlets, that is like hub and spoke model”, Srivatchan said. Noting that automobile servicing requires intense local market ‘nuances’, he said the company has decided to focus as TVS Automobile Solutions Ltd in Southern region. “While we go outside the market, we will harness the people who have local customer experience”. “We are going through the joint venture route to set up our own company outlets and in the all the JVs we will be majority shareholders. Now, we already have signed up two Joint Ventures. They have come into being”, he said.
TVS Automobile Solutions, engaged in providing after- market integrated service solution, is part of city- headquartered TVS and Sons. It is a strong player in the South, with 29 exclusive service points and 50 franchise outlets.
TVS Automobile Solutions have formed a JV with Kolkata- based Rajgarhia Group for expansion in the Eastern market, while in Gujarat, it has formed a JV with ABC Bearings, named TVS Automobile Solutions Gujarat Pvt Ltd, Srivatchan said. Stating that their joint venture in Kolkata was about to commence the operation and have set up a first outlet in the region, he said the venture would be called ‘TVS Rajgarhia Automobile Solutions´. “The work for setting up first outlet in Gujarat is going on. The land is being scouted and investments are being made”, he said.
Observing that these two JVs would provide the company an opportunity to expand in the respective regions, Srivatchan said they are holding talks with a company in the National Capital Region for setting up similar Joint Ventures.
“We are in advanced stage of discussion with an identified partner in NCR region. Our next focus is NCR”, he said.
By the end of current year, they plan to have about five outlets in West Bengal and seven in Gujarat. “Business plans in both the cases has been confirmed. Board has approved those business,” he said.