TVS Automobile Solutions Pvt. Ltd., (TVS ASL), a part of the TVS Group, announced the acquisition of the entire equity stake of Mahindra First Choice Services Ltd. (MFCS) and its subsidiary Auto Digitech Pvt. Ltd. (ADPL) through a share-swap deal.The acquisition will enable MFCS, a part of the $19.4 billion Mahindra Group, to integrate its operations with TVS ASL, a multi-brand independent automobile aftermarket player, the companies said in a filing. “It is a share swap transaction in which M&M will secure a minority stake in TVS ASL, while the latter will get 100% stake in MFCS,” G. Srinivasa Raghavan, MD, TVS ASL, said. M&M said the company would invest about ₹35 crore for acquisition of shares in TVS ASL, comparable to the consideration the latter will pay to acquire shares of MFCS and ADPL. In a separate filing, Mahindra Holdings Ltd. (MHL), a wholly owned subsidiary of M&M, said it agreed to sell its entire stake in MFCS to TVS ASL. Besides, MFCS has also decided to sell its entire stake of optionally convertible redeemable preference shares in Auto Digitech Pvt Ltd to TVS ASL. Following the sale, MHL’s shareholding in MFCS and ADPL would come down to nil. Both these entities would cease to be the subsidiaries of MHL. According to Mr. Raghavan, MFCS has a pan-India network of more than 475 franchise partners and 100 distributors, while TVS ASL has more than 20,000 retailers and 10,000 garages. During March 2020, MFCS posted a turnover of over ₹100 crore and TVS ASL ₹1,296 crore. The move will enable the respective organisations to combine its strengths to organise the highly fragmented automobile aftermarket services space in India, thereby providing value to customers, channel partners, employees and other stakeholders, he added.“India’s $10 billion aftermarket segment is fragmented and needs strong support for relevance and growth amid changing technology landscape in the automotive sector. We would take this opportunity to bring thousands of entrepreneurs into a digital platform,” said R. Dinesh, director, TVS ASL.