Castrol India Limited (CIL) and Ki Mobility Solutions(KMS), have announced a collaboration to leverage each other’s strengths and expand the country’s automotive aftermarket ecosystem via ‘myTVS’, KMS’s digitally integrated multi-brand service platform for two and four-wheelers.
CIL will acquire a 7.09% stake in KMS with a planned investment of up to INR 487.5 crore, marking CIL’s largest all-cash deal to date. With this strategic investment, CIL aims to expand its presence in service and maintenance for both internal combustion engines (ICE) and electric vehicles (EV) and leverage myTVS’ digital and operational capabilities.
This alliance will also offer the potential for Castrol and KMS to collaborate and partner in select markets beyond India. Vehicle owners will benefit from this strategic alliance through access to differentiated, digitally enabled service and maintenance offered by the myTVS platform whose reach includes three million customers across 1,000 garages in India.
The myTVS online-to-offline digital platform already offers quality, standardised and cost-effective services, and parts to B2B and B2C customers through its owned outlets, franchise network, at-home services, and roadside assistance. CIL’s existing presence in service and maintenance includes its rapidly expanding network of 220 Castrol Auto Service passenger car workshops in 110 cities across India and 42 Castrol Express Oil Change outlets that offer two-wheeler consumers swift and reliable oil change.
Sandeep Sangwan, Managing Director, Castrol India, 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.”
G Srinivasa Raghavan, Managing Director, Ki Mobility Solutions, added, '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.”