TVS Logistics buys UK’s Universal Components

He said the acquisition would help TVS develop its presence in the commercial and Light Commercial Vehicle spare parts range in other Asian markets and help acquire best practices.

The acquisition was made by floating a Special Purpose Vehicle — TVS Europe Distribution Ltd — promoted by TVS Group Companies’ Sri Chakra and Associated Autoparts,here.

As part of the acquisition,TVS Europe Distribution has purchased 90 per cent of Universal Components UK Ltd,he said.

“We have the capabilities to handle such businesses,but not the expertise to handle the business. It will take some time”.

Dinesh said the present Managing Director of Universal Components David Kernahan would continue to head the business,sharing his expertise with TVS.

He said this acquisition would help consolidate their position in the ‘distribution’ of parts business.”We are taking the same route which we took for logistics business in 2009.”

Kernahan termed the acquisition as a ‘perfect fit’ for the UK and India and said they aimed to double revenues from 20 million pounds to 40 million pounds in three to five years.

“For me,TVS and Universal Components make an excellent combination”,he said on the tie-up.

Post the tie-up,he said,they planned to take the 14,000 line products in commercial and Light Commercial Vehicle industry to 25,000 units in the future.

Meanwhile,British High Commissioner James Bevan,on his first official visit to Chennai,said this tie-up would bring good business for the TVS Group.

Noting that trade volume between India and the UK grew by 40 per cent in 2011,he said,”we welcome more Indian investments. Recent acquisitions was Tata’s taking over Jaguar in UK,he said.

“Overall,this tie-up is good news for Britan and good news for India”,he said.

Dinesh said the idea of setting up an Special Purpose Vehicle was to help the company help make future acquisitions.

With this deal,Universal Components can leverage the sourcing strength of TVS for accelerated growth,as TVS compliments the sourcing efforts of Universal Components not only in trailer range but also inthe commercial vehicle range,a company statement said.