TVS Motor's Singapore arm invested $16.57 million in US-based start-ups

TVS Motor (Singapore) Pte Limited, a wholly-owned subsidiary of TVS Motor created to invest in tech start-ups, has invested about $16.57 million in 2019-20. 


According to the TVS Motor annual report, the Singapore subsidiary is leveraged to operationalise digital technology by delivering high-quality solutions that address real-life business challenges. These include  harnessing the power of Analytics, Artificial Intelligence, Augmented Reality, Machine Learning and Internet of Things.


These are areas focused on the automotive and fintech spaces, which have direct relevance to the Company and its subsidiaries. The digital strategy would be delivered through both organic and inorganic means, the company said.


In 2019-20, TVS Motor (Singapore) Pte Limited made investments in US-based companies Altizon Inc, Predictronics, Scienaptics and also in Tagbox Pte, Singapore, which are in the fields of IoT, predictive maintenance and credit underwriting, with an aggregate investment of $16.57 million. 


During the year, TVSM (the Company) has invested a sum of SGD 26.48 million in the ordinary shares of TVS Motor (Singapore) Pte Limited.

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TVS also invested a sum of Rs 11 crore in the shares of c Automotive Private Limited (UV), including a sum of Rs 5 crore invested in the preference capital in 2019-20. TVS held 25.76 per cent of Ultraviolette's total capital as on March 31, 2020. UV is a start-up engaged in developing electric mobility solutions.


Meanwhile, TVS Motor has said its Indonesian arm PT.TVS Motor Company Indonesia (PT TVSM) achieved a positive EBITDA in 2019-20 as against loss the previous year and achieved a break even during the last fiscal.


According to the company's annual report, growth in volume sales, coupled with margin improvement helped the firm  achieve a positive EBITDA of $0.75 million in 2019-20, aagainst a loss of $3.04 million a year ag0. It is worthwhile to note that the Company achieved break even by posting an operating profit for the second half of 2019-20. During the year TVS Motor invested a sum of $5 million in the ordinary shares of PT TVSM.


The Indonesian two-wheeler Industry was stagnant during 2019-20 at 7.2 million units. While the Skubek (scooter) segment grew by 3 per cent, bebeks (motorcycles) suffered negative growth of 15 per cent and 21 per cent respectively.


PT TVS achieved sales of 53,650 two-wheelers as against 40,760 units the previous year, registering a growth of 31 per cent. In three wheelers, the Company sold 8,100 units as against 2,700 units the previous year.


Talking about the housing arm TVS Housing Limited, a 100 per cent subsidiary of the Company, the company said TVS Housing has completed the construction of 1.4 Million sq ft till date and the total area under development is 5.5 million sq ft currently.


Emerald Haven Life Spaces (Radial Road) Limited (EHLSRRL), a subsidiary of EHRL acquired land admeasuring six acres to develop a multi-storeyed building (MSB) at Kovilambakkam, Radial Road, Chennai. During the year, the Company expanded to Bengaluru via a Joint Development Agreement (JDA) for a 6.4-acre land parcel in Kagglipura. During the year, EHRL entered a Joint Venture Agreement with ASK Real Estate Special Opportunities Fund-II and invested Rs 16.63 crore, while ASK invested of Rs 15.98 crore.