TVS Group Acquires Britain-based Firm

Chennai: Chennai-based $6.6 billion auto component group, TVS, will use the recently acquired Universal Components' marketing expertise and best practices in India and other Asian markets. Announcing the acquisition of 90 percent stakes in the Britain-based Universal Components at an outlay of 100 crore, R. Dinesh, Managing Director, TVS Logistics Services, said Tuesday, "We will use the marketing expertise and best practices followed by Universal Components in India and other Asian markets." TVS group acquired Universal Components through a Special Purpose Vehicle (SPV) called TVS Europe Distribution UK promoted by Srichakra Tyres and Associated Autoparts. According to Dinesh, the acquisition was funded by internal accruals. The new acquisition will help TVS develop its presence in the commercial and light commercial vehicles spare parts range in other Asian markets as well as help acquire best practices in dealing with its customers (small retailers). It will also further improve its forecast and planning capabilities and deploy state-of-the-art IT systems in India and other countries where the distribution of spare parts is undertaken including Sri Lanka. Universal Components has 420 customers in Britain who are serviced through 650 distribution outlets. The company sells parts worth approximately 200 crore and employs around 100 people selling manufacturer-branded parts and its own range of parts. In 2009, TVS Logistics Services acquired Multipart Holdings. With the buyout of Universal Components, the group's business in Europe is expected to cross 1,000 crore.