TVS Group acquires Universal Components UK Ltd.

TVS Group has announced the acquisition of Universal Components (UC) UK Ltd – Britain’s leading independent wholesale distributor of commercial vehicles’ parts and accessories. Universal Components is the second acquisition by the TVS Group in the UK after its successful buyout of Multipart Holdings in 2009. With these two acquisitions, the TVS Group’s turnover would cross Rs 1,000 crore in the UK and would employ nearly 500 persons.

The acquisition of Universal Components will help TVS develop its presence in the commercial and light commercial vehicles spare parts range in other Asian markets (except India) as well as help acquire best practices in dealing with its customers (small retailers). It will also further improve its forecast and planning capabilities and deploy state-of-the-art IT systems in India and other countries where the distribution of spare parts is currently undertaken.

Universal Components, headquartered in Sheffield, has 420 customers in the UK who are serviced through 650 distribution outlets. It sells parts worth approximately Rs 200 crore and employs around 100 people selling both manufacturer-branded parts and its own range of Universal Components branded parts. It currently has in excess of 12,000 part numbers and plans to double this number in the next three to five years.

Announcing the acquisition, R Dinesh of the TVS Group says, “This acquisition will give increased scale and size to strengthen our relationship further with Global suppliers, which will benefit both Universal Components and TVS. We will utilise Universal Components’ marketing expertise and best practices in our businesses in India and other Asian markets. It would also help us to have wider range coverage of parts to distribute in the aftermarket.”

David Kernahan, managing director for Universal Components, said: “We are delighted to be under TVS ownership. Together we can continue our growth pattern and become a larger player in the international and domestic CV sector. We look forward to TVS helping Universal Components further increase its range of supplier relationships and also bring in low cost country sourcing.”