myTVS parts division on expansion spree, to add one store a day in FY24

Aftermarket major Ki Mobility Solutions is in the process of expanding its myTVS PartSmart digital auto parts distribution platform to approximately 1,000 stores by March 2024, adding at least one store per day during the current fiscal year.

This comes after the company raised around Rs 690 crore in December as a combination of Rs 487 crore from Castrol India (Castrol) and Rs 203 crore from Exor fund managed by Lingotto, mainly to expand its myTVS brand.

Under Ki Mobility, two brands operate at the moment, including myTVS for the car service business and myTVS Partsmart for the spare parts business. While at present the total revenue from both systems is around Rs 1,500 crore, it is expected to grow by more than 50 per cent to Rs 2,200 to Rs 2,300 crore by 2023-24, mainly driven by the parts business which may see its revenue overrun. More than Rs 1000 crore over the year driven by expansion plans. The company has also set a goal of increasing its presence to 35,000 garages by the end of the year, from about 23,000 now. Ki Mobility is part of the $2 billion TVS Mobility Group.

G Srinivasa Raghavan, Managing Director, said: “We have 600 stores connected today to the digital world and we expect to reach 1,000 stores by March 2024, which means almost one franchisor per day, thus becoming the largest aftermarket chain in the Asia-Pacific region, Except for China.” K Mobility Solutions. This will help the company expand its presence to around 18 states by FY24. One of the major advantages that Raghavan highlights is the delivery time, which varies from 2 hours to 48 hours, depending on the location, supported by more than 420 fulfillment centers, allowing the buyer to choose from Collection of products from one place.

“For franchisees and garages, it is a destination brand. For parts manufacturers, on the other hand, it has increased their reach. Instead of managing the aftermarket, they now view myTVS Partsmart as an extended arm of the aftermarket,” said Raghavan.

He added that global auto parts company Delphi has closed its aftermarket operations in India and is now based on the myTVS Partsmart platform. Five other such players are in advanced stages of talks with the company for such an exclusive deal, while 85 parts manufacturers supply their products through the platform. “The partnership has helped us double our revenue from $6 million in the past two years and we expect it to reach $15 million in the next four years,” said Liu Ningjun, Vice President of APAC – Delphi. For players like Delphi, the advantage is that breakeven will help them reduce working capital.