The Hindu : TVS plans integration of services

Online edition of India's National Newspaper
Wednesday, Oct 01, 2003

Business

Business

TVS plans integration of services

By Our Special Correspondent

CHENNAI SEPT. 30. TV Sundram Iyengar & Sons Ltd. is contemplating integration of all its three nascent business initiatives — establishment of multi-brand quick repair shops for passenger cars under the TVS Express brand name, foray into pre-owned car sales through the TVS Value brand and provision of emergency support service under the brand name of TVS Care — under an unified brand. The objective is to ensure that a customer gets total solution under a common brand.

The new initiatives, according to R. Dinesh, Executive Director, mark a significant strategic shift in the company's thinking.

The emphasis appears to be on customers even as the thrust continues to be on selling spare parts.

The integration was likely to happen within the next two weeks, Mr. Dinesh said in a chat with select presspersons here today.

The Executive Director said TVS consciously opted for the franchisee route while going in for the TVS Express brand of repair shops.

This was done primarily to ensure that the existing garages didn't disappear into thin air in the emerging competitive environment, he said. If they had moved into the pages of history, that would have augured ill for the industry at large, he reckoned.

The franchisees were given technology support and assured steady supply of genuine just in time spare parts. There are around 48 TVS Express outlets, spread across Tamil Nadu and Kerala.

An outlet has just been opened in Bangalore. The objective was to take this number to 100 by April next, Mr. Dinesh said.

The foray into the pre-owned car business, Mr. Dinesh felt, was the inevitable fallout of its dealership status. Again, it was the consequence of its customer-centric thrust of the company, he added.

Today, the company has eight outlets in Tamil Nadu and Kerala. The TVS Value is selling 150 cars a month through these outlets.

The company, Mr. Dinesh said, was ready to provide, on a commercial basis, emergency support services for cars stranded for assorted reasons. It had over the last few months gone through extensive trials and mock-call to test the efficacy of the "TVS Grid'' network and appeared ready now to go commercial with the services.

Mr. Dinesh said TVS had invested close to around Rs.15 crores to embark on these new business initiatives.

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