[blackwasp]

Mahindra has announced that its multi-brand workshop services, First Choice, will be sold to TVS Automobile Solutions. In return, Mahindra will secure a stake in TVS. The deal is pending regulatory approvals.

TVS Automobile Solutions operates India’s largest independent workshop brand under the myTVS name. Mahindra First Choice, meanwhile, operates both 2 and 4-wheeler multi-brand independent workshops. The combined entity is expected to bring about synergies in the highly unorganised aftermarket services sector. As part of the transaction, Mahindra will secure a stake in TVS Automobile Services (TVS ASPL) and in turn, First Choice will become a subsidiary of TVS ASPL.

Mahindra First Choice has a pan-India network of 475+ franchise partners and 100+ distributors present in over 350 towns across 25 states and 2 union territories. TVS Automobile Services has established a strong network of over 2 million customers, 20,000 retailers, 10,000 garages and currently offers fleet management for over 70,000 vehicles.



Link to the Team-BHP News

[saikarthik]

Interesting! So merging two services will expand the operational capabilities and reach, and as Mahindra will own a part of stake they get healthy profits too.

Question now is, will the First Choice brand remain or will be renamed as per TVS Automobile Solutions?

[hserus]

Originally Posted by saikarthik

Interesting! So merging two services will expand the operational capabilities and reach, and as Mahindra will own a part of stake they get healthy profits too.

Question now is, will the First Choice brand remain or will be renamed as per TVS Automobile Solutions?

myTVS also has a substantial auto parts and accessories business. https://mytvs.com/

Wonder what happens to this, does Mahindra - which has their own branded accessories and parts / lubes, join that part of the business as well?

[vishwasvr]

Having dealt with MyTVS, I’m not sure how this will help them improve their services. Terrible policies, indulging in counterfeit parts, tall claims and promises by MyTVS. Less said the better about MCFS.

[TusharK]

Mahindra First Choice Services sold to TVS

Mahindra Holdings Ltd. (MHL) has completed the process of transferring its entire stake in Mahindra First Choice Services (MFCS) for Rs. 21.5 crore, as well as its stake in Auto Digitech Private Ltd. (ADPL) for Rs. 13.5 crore to TVS Automobile Solutions Private Ltd. (TASL).

As per a regulatory filing, MFCS and ADPL are no longer the subsidiaries of MHL. TASL now holds 100% of the paid-up equity share capital of MFCS.

TVS Automobile Solutions operates India’s largest independent workshop brand under the myTVS name. The company has a strong network in the South. The acquisition of MFCS is expected to make TASL a stronger pan-India player.

Source: BusinessLine

[i74js]

Is this trend that M&M cannot manage JVs & partnerships? I doubt if the company believes in upkeeping of the promise that it makes to its stakeholders for protecting, nurturing and growth of new ventures in order to positioning of product or service offerings and then protecting it.

Not everything is done just for profit! Perception and your image as a brand are also at stake with every decision that you take.

[pugram]

Seems like M&M is hiving off business in areas which they can't manage, mostly partnerships and JVs.

All in trouble or hived off - Ssangyong, Reva, Navistar, Pinninfarina and now this.

They have squandered the first mover advantage they had with acquisition of Reva (Maini)

[sunilg33]

By the sale amount, it's clear that the business did not have any real value in terms of Brand nor in terms of any assets.
It's good for Mahindra to concentrate on its core business as TATA has marched ahead in terms of the design and the product portfolio. It will take more than the Thar and XUV 500 for Mahindra to catchup with TATA.