Castrol India to acquire stake in TVS Automobile’s platform Ki Mobility
Castrol India, a lubricant company, has agreed to acquire 7.09% interest in Ki Mobility Solutions, a digital arm of TVS Automobile Solutions, in an all-cash transaction valued at INR 487.5 crores.
The investment in Ki Mobility is expected to create a co-branded service and maintenance network and augment shift to electric mobility in India.
The transaction is expected to help Castrol increase its footprint in service and maintenance for both internal combustion engine and electric vehicles, and leverage myTVS, Ki Mobility’s multi-brand service platform for two and four wheelers.
Castrol India and Ki Mobility will also cooperate and partner in select markets beyond India through myTVS digital platform as part of the agreement.
The partnership is anticipated to provide vehicle owners access to differentiated, digitally enabled service and maintenance offered by the myTVS platform.
Castrol India to acquire 7% stake in TVS Automobile’s platform Ki Mobility. Photo courtesy of CASTROL LIMITED.
Sandeep Sangwan — Castrol India Managing Director said: “KMS has a leading automotive digital platform, myTVS which is disrupting the Indian aftermarket.
“Castrol’s established brand equity and nation-wide footprint in India, combined with myTVS’ digital strength will bring structure to the currently fragmented automotive service sector and also accelerate business growth for KMS.
“In addition, Castrol will explore business and technology collaborations with KMS to enable readiness for transition to electric mobility.
“Indian consumers will reap the dual benefits of trusted brands and reliable services.”
myTVS platform with more than 3 million customers and more than 10,000 retailers across India offers services and parts to B2B and B2C customers through its owned outlets, franchise network, at home services and road-side assistance.
G Srinivasa Raghavan — Ki Mobility Solutions Managing Director said: “Our partnership with Castrol will significantly enhance the ownership experience for customers across the lifecycle of their vehicles.
“Besides, the coming together of two leading players will offer numerous synergy options like scaling-up of business offerings to electric vehicles, and the potential to expand our footprint beyond India.”
Castrol India has a network of 220 Castrol Auto Service passenger car workshops across 110 cities in the country and 42 Castrol Express Oil Change outlets for two-wheeler consumers.