TVS in JV with Myers Tire of US to sell top-end tyre service tools
13 Jun 2013
TVS Automobile Solutions, an arm of two-wheeler maker TVS & Sons Ltd, has formed a joint venture with Myers Tire Supply International Inc, part of US plastic and rubber products maker Myers Industries, to sell equipment, tools and accessories that go into improving tyre service quality.
Under the proposed deal, the tool and garage equipment business division, one of TVS & Sons' businesses brought under TVS Automobile Solutions as part of the recent restructuring, will be spun off into a separate joint venture firm, in which Myers will hold a 35-per cent stake. The rest will be held by TVS Automobile.
The the financial details of the venture have not been disclosed. However, the yet-to-be-named JV will be a subsidiary of TVS Automobile Solutions after TVS Sons' multi-brand car service business 'MyTVS' was spun off into a separate company.
Both partners are drawing up business plans for the JV. The deal will turn TVS Auto into the only organised player offering expertise in a range of auto after-market businesses.
''The tie-up with Myers will bring in global best practices in the after-sales tyre service business through its equipment and consumables. The repair quality of the tyre has to be of some standard for people's safety besides improved life of the tyre,'' TVS Automobile Solutions president and chief executive Sanjay Nigam said.
The JV aims at revenues of Rs25 crore by next year and has set an ambitious target of reaching about Rs100 crore in 2-3 years.
James Drohan, general manager, Myers Tire Supply International, said tire equipment supply and distribution was a key business of the company.
''India is a crucial market in Asia Pacific with brighter prospects in the vehicle market. We can also help tyre brands in India strengthen and grow their after-market business,'' he said.