Castrol India Ltd. has agreed to pick up a stake in TVS Group-controlled Ki Mobility Solutions Pvt., in what would be its largest all-cash deal yet.
The lubricant maker will acquire in two tranches a 7.09% stake in the Madurai-based online-to-offline aftermarket service platform for a total consideration of Rs 487.5 crore, according to an exchange filing on Friday. The investment will expand Castrol India’s presence in the after-sales service and maintenance segment and allow it to forge tie-ups in what is a highly fragmented automotive service sector.
The alliance aims to create a strong business-to-consumer aftermarket network in India, with a focus on the transition to electric mobility, the filing stated.
“Castrol’s established brand equity and nationwide footprint in India, combined with myTVS’ digital strength will bring structure to the currently fragmented automotive service sector and also accelerate business growth for Ki Mobility,” Sandeep Sangwan, managing director at Castrol India, said in a statement.
Headquartered in Madurai, Ki Mobility is one of the several tech-focused acquisitions that TVS Group has made in India’s automotive aftermarket space. Its ‘myTVS’ digital platform aims to provide end-to-end vehicle lifecycle management for consumers while creating an ecosystem for B2B players – workshops, parts suppliers, etc. It had a turnover of Rs 1,206.95 crore in the fiscal ended March 31, 2022.
“Our partnership with Castrol India will significantly enhance the ownership experience for customers across the lifecycle of their vehicles,” Ki Mobility Managing Director G. Srinivasa Raghavan said. “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.”