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

Automotive aftermarket major Ki Mobility Solutions is in the process of expanding its digital auto parts distribution platform myTVS PartSmart to around 1,000 stores by March 2024, adding at least one store a day during the current financial 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 an Exor fund managed by Lingotto, mainly for expansion of its brand myTVS.

Under Ki Mobility, two brands are functioning at present, which includes myTVS for the automobile service business and myTVS Partsmart for the parts business. While at present, the overall revenue from both the platforms is around Rs 1,500 crore, it is expected to grow by over 50 per cent to Rs 2,200-2,300 crore by 2023-24, mainly driven by the parts business that may see its revenue crossing over Rs 1,000 crore over the year driven by the expansion plans. The company has also set a target of increasing its presence to 35,000 garages by the end of the year, from around 23,000 now. Ki Mobility is part of the $2-billion TVS Mobility Group.

“We have 600 stores today connected to the digital world and expect to reach 1,000 stores by March 2024, which means almost one franchisee a day and thereby becoming the largest aftermarket chain in Asia Pacific, except China,” said G Srinivasa Raghavan, Managing Director, Ki Mobility Solutions. This will help the company in expanding its presence to around 18 states by FY24. One of the key advantages that Raghavan highlights is the delivery time, which ranges between two hours to 48 hours, depending on the location, backed by more than 420 fulfillment centers, giving the option for the buyer to choose from a range of products from one place.

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

He added that global auto parts major Delphi has shut down their aftermarket operations in India and is now depending on myTVS Partsmart platform. Five other such players are also in advanced stages of talks with the company for such an exclusive deal, while 85 parts manufacturers are supplying their products through the platform.  “The partnership has helped us in doubling our revenue from $6 million in the last two years and we expect it to touch $15 million in the next four years,” said Liu Ningjun, vice-president, APAC -Delphi. For players like Delphi, the advantage is that the tie up will help them in reducing the working capital.