Mahindra and Mahindra has announced that it has traded its 100 per cent stake in the subsidiary – Mahindra First Choice Services Limited (MFCS) to TVS Automobile Solutions Private Limited (TASL) for a consideration of Rs 21.5 crore.
With this transaction, MFCS no more comes under the ownership of Mahindra and will be wholly owned and managed by TVS. Presently, MFCS has a network of over 475 pan-India franchise partners and 100 plus distributors in over 350 towns across 25 states and two Union Territories. Meanwhile, TASL brings along a strong customer base of two million, 20,000 retailers, and 10,000 garages nationwide.
R. Dinesh, Director, TVS Automobile Solutions Pvt. Ltd., 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-billion-dollar 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. I am sure this partnership will be a win-win proposition for all the stakeholders.”
V S Parthasarathy, President, Mobility Services Sector, Mahindra Group, said, “MFCSL has developed a large, trusted, multi-brand car service franchise and distribution network over the years. Our focus on quality and customer satisfaction has ensured that we continue to deliver superior value to our customers and channel partners. 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. I applaud the commitment and passion of our franchisees, distributors, and employees, and seek their support as we embark on the next phase of the journey.”
