Castrol India Ltd. announced on Nov. 25 an investment of up to Rs 487.5 crore (Rs 4.9 billion or U.S. $60 million) in ki Mobility Solutions, a leading Indian player in the independent automobile aftermarket business, to create a co-branded service and maintenance network.
Under the investment – which would be the company’s largest all-cash deal to date – Castrol India will acquire a 7.09% stake in ki Mobility Solutions. The goal is to expand Castrol India’s presence in service and maintenance for both internal combustion engine and electric vehicles, while leveraging the digital and operational capabilities of myTVS, ki Mobility’s digitally integrated, multi-brand service platform for two- and four-wheeler vehicles.
Castrol has a rapidly expanding network of 220 Castrol Auto Service passenger car workshops in 110 cities across India and 42 Castrol Express Oil change outlets that service two-wheeler consumers.
“Castrol’s established brand equity and nationwide footprint in India, combined with myTVS’ digital strength, will bring structure to the currently fragmented automotive service and sector and also accelerate business growth for KMS,” Castrol India Managing Director Sandeep Sangwan said in a press release.
“Our partnership with Castrol will significantly enhance the ownership experience for customers across the life cycle of their vehicles,” ki Mobility Solutions 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.”
In its third quarter earnings release, Castrol India said it was exploring further collaborations with electric vehicle original equipment manufacturers to help advance electric mobility in India and support mechanics to get EV-ready.
Ki Mobility Solutions Pvt. Ltd. is the digital subsidiary of TVS Automobile Solutions Pvt. Ltd., India’s largest independent automotive aftermarket player and part of the TVS Mobility Group. As a digital platform, ki Mobility offers standardized service to vehicle owners of two-wheelers, passenger cars and commercial vehicles across India. It is also a one-stop shop for automobile owners to access repair management services, parts, accessories, tires, batteries, insurance and on-demand roadside assistance.
Castrol India has a large manufacturing and distribution network in India with three blending plants and a network of 350 distributors.