Diversified global giant Mitsubishi Corporation has become a substantial minority stakeholder in TVS Automobile Solutions Private Limited (TASL), an Indian independent aftermarket solutions provider and part of the $8.5-billion TVS group.
The Japanese conglomerate, which till last year held a meagre 3 per cent stake in the TVS group firm, has increased it to 25 per cent by picking up an additional 22 per cent now. The consideration for its entire 25 per cent stake in TASL is pegged at little over Rs 250 crore, according to R Dinesh, director, TVS Automobile Solutions.
TASL is a profitable company with an annual turnover of Rs 1,300 crore last fiscal, including Rs 400 crore from overseas markets.
“With this strategic partnership with Mitsubishi, the company will grow 35 per cent in this fiscal and its revenue will touch Rs 1,800 crore by March 2020,” Dinesh said, adding “we are in the next phase of strong growth journey through this tie-up”. —FE