Mitsubishi Corporation to invest in TVS Automobile Solutions for a ‘substantial minority’ stake
Mitsubishi to help TASL’s successful business model to expand in overseas markets
Chennai - 03rd June, 2019:
TVS Automobile Solutions Private Limited (TASL) one of India’s leading independent aftermarket players and part of the $8.5 bn TVS group, today announced that it has agreed to partner with Mitsubishi Corporation (MC), Japan, by allowing them to take a substantial minority stake in the company.As per the agreement, subject to approval by Competition Commission of India (CCI) & other relevant authorities, MC will increase its stake from 3% to 25% in TASL through a combination of primary investment and secondary purchase. Earlier, MC had invested the initial 3% in TASL last year.
Headquartered in Japan, Mitsubishi Corporation, since 1950’s, has been engaged in the automotive manufacturing, distribution, financing and so on, in Japan and other overseas markets. MC will strive to expand TASL’s business and participate in the growing Indian market through introduction of Japanese automotive parts suppliers, and enhancement of price competitive parts line-ups for TASL. In addition, as a collaboration synergy between MC and TASL, MC aims to deploy TASL’s successful business model in overseas markets and contribute to TASL’s continuous business expansion.
Says Mr. R. Dinesh, Director, TVS Automobile Solutions,
“We are glad to have Mitsubishi Corporation as our strategic investment partner. This strategic investment goes to show the success of TASL as a scalable business model not only in India but also in overseas markets. TASL has also grown profitably and crossed Rs. 1300 crs. in revenue for FY19. Together with Mitsubishi, we would be exploring the overseas opportunities in Africa and beyond.”
Mr. S. Wakabayashi, Senior Vice President, Mitsubishi Corporation, said, “This is an important partnership between two great organisations. Indian automotive aftermarket has grown in double digits consistently for many years now and is expected to grow constantly in the future. With TASL’s business know-how and Mitsubishi Corporation’s global expertise, we will mutually have a win-win partnership.”