Mahindra First Choice Services to become a subsidiary of TVS Automobile Solutions

This deal will enable both companies to combine strengths and organise the automobile aftermarket services market in India.
Mahindra First Choice
Mahindra First Choice
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Mahindra First Choice Services Ltd and TVS Automobile Solutions are integrating operations as part of a share swap agreement, the companies announced. As part of this deal, Mahindra and Mahindra Ltd will get a stake in TVS Automobile Solutions and TVS will hold 100% of the paid-up equity share capital of Mahindra First Choice. As part of the deal, Mahindra holdings will receive a cash consideration of Rs 21.5 crore on sale of equity shares held in Mahindra First Choice, the company said in a regulatory filing.

This, the companies said, will enable them to combine strengths and organise the automobile aftermarket services market in India. Mahindra First Choice Services Ltd is a chain of multi-brand car and two-wheeler service workshops, part of the Mahindra Group, and TVS Automobile Solutions is a leading independent automotive aftermarket player As part of the transaction, Mahindra First Choice Services will become a subsidiary of TVS Automobile Solutions.

The transaction is subject to regulatory approvals, including approval from the Competition Commission of India.

R Dinesh, Director, TVS Automobile Solutions said, “I am delighted with this deal as two great brands have come together for the benefit of the overall aftermarket ecosystem. India’s $10 bn aftermarket segment is fragmented and needs strong support for relevance and growth amidst changing technology landscape in the automotive sector.”

“We would take this opportunity to bring thousands of entrepreneurs into a digital platform wherein they can get benefited from digital technologies across marketing, diagnostics, customer experience, quality parts, access to training and digital payments,” he added.

V S Parthasarathy, President, Mobility Services Sector, Mahindra Group said, “I believe that consolidation, scale and phygital solutions will drive the next phase of growth for the company as well as the industry. I am confident that a strong partner like TVS ASPL will help take our legacy further and propel the company to the next orbit,” he said.

TVS Automobile Solutions Managing Director Srinivasa Raghavan said that TVS has created an ecosystem especially across South India, and with this, can create a pan Indian digital footprint.p

“We will continue to invest and expand our network to over 10,000 garages in the next 18-24 months. It is imperative that we take this positioning to help organize the fragmented garage ecosystem so that we can continue to provide superior customer experience to the growing automotive population and help these garages by making them future ready,” he added.

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