Castrol India completes acquisition of stake in digital platform
Castrol India Limited announced the completion of its acquisition of a 7.09% stake in ki Mobility Solutions Pvt. Ltd., a leading Indian player in the independent automobile aftermarket business, the company said in an exchange filing. On November 25, 2022, Castrol India announced that it was investing in ki Mobility Solutions to create a co-branded service and maintenance network.
Castrol India acquired the stake for a total consideration of INR487.5 crore (USD60.1 million) by way of subscription to 95,083 compulsorily convertible preference shares and 100 equity shares. The acquisition was completed on January 10, 2023.
ki Mobility had a turnover of INR1,206.95 crore (USD148.8 million) in the financial year 2022, compared to INR819.28 crore (USD101 million) during the same period a year ago.
The collaboration between Castrol India and ki Mobility Solutions aims to create a strong business-to-consumer (B2C) aftermarket network in India and enhance readiness for the transition to electric mobility.
The alliance will offer the potential for ki Mobility Solutions to globalise in select markets beyond India via its ‘myTVS’ digital platform, a digitally integrated multi-brand service platform for two- and four-wheelers.
With this strategic investment, Castrol India aims to expand its presence in service and maintenance for both internal combustion engine (ICE) and electric vehicles (EV) and leverage myTVS’ digital and operational capabilities.
myTVS platform currently reaches three million customers across 1,000 garages in India. myTVS’ online-to-offline digital platform already offers quality, standardised and cost-effective services and parts to business-to-business (B2B) and B2C customers through its owned outlets, franchise network, at-home services and road-side assistance.
Castrol India’s existing presence in service and maintenance includes its rapidly expanding network of 220 Castrol Auto Service passenger car workshops in 110 cities across India and 42 Castrol Express Oil Change outlets that offer two-wheeler consumers swift and reliable oil change.