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| TVS Group infuses Rs 42 cr in energy arm |
| BS Reporter / Chennai Sep 01, 2010, 00:25 IST |
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The TVS group has infused around Rs42 crore in the newly floated subsidiary TVS Energy Pvt Ltd, which will mark TVS Group’s foray into the power business. It may be recalled that in September last year Business Standard reported that the country’s third largest two-wheeler company TVS Motor, by sales, was planning to foray into the power sector through its group company.
The foray was through Sundaram Clayton Ltd (SCL), part of the $4 billion TVS group, a auto components manufacturing and distribution group, and it is also a leading supplier of aluminum die castings to automotive and non-automotive sectors.
SCL has invested Rs4.50 crore as equity capital in TVS Energy Ltd (TVS Energy), a subsidiary of the SCL. Both, TVS Motor Company Ltd and the SCL, hold the entire paid up capital of TVS Energy, amounting to Rs 42 crore.
It may be noted in December the Chennai-based two-wheeler manufacturer invested Rs5 lakh as equity in
TVS Energy which had become a wholly-owned subsidiary of TVS Motor during December, 2009.
TVS Motor will be the first automobile company which will foray into power generation in the country.
While company officials were not available for comment on TVS Energy Pvt Ltd’s business plan, earlier Venu Srinivasan, chairman and managing director, TVS Motor told Business Standard that the company’s focus will be on wind and micro-hydro followed by solar and biomass.
He also said, the foray will be through Sundaram Clayton, TVS Motor’s group company, which was planning to set up a 5 mega watt (Mw) wind farm in Tamil Nadu, said Srinivasan.
SCL has reported a net profit of Rs 2.32 crore during the quarter-ended June 30, 2010, compared to net loss of Rs 2.08 crore. The company’s total income rose to Rs 176.05 crore from Rs 101.81 crore, an increase of 74 per cent.
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