Bosch Ltd, a leading supplier of technology and services, has entered into an agreement with Wheels India and Brakes India, part of the TSF Group, to form a joint venture focused on the commercial vehicle air systems segment.
The proposed joint venture will develop and manufacture solutions for commercial vehicle air systems and may also expand into other product segments in the future.
Equal ownership structure
Under the agreement, Bosch Ltd will hold 50% stake in the joint venture company, while the TSF Group companies, Wheels India and Brakes India will collectively hold the remaining 50%.
The board of the joint venture will comprise four directors, with two nominees each from Bosch Limited and the TSF Group companies.
Following the investment, the joint venture company will become an associate company of Bosch Ltd and will be classified as a related party of the company.
Initial investment planned
The initial paid-up equity share capital of the joint venture company at the time of incorporation will be up to ₹1 lakh, contributed equally by Bosch Ltd and the TSF Group companies.
Within 60 days of incorporation, the partners plan to infuse additional capital equivalent to €1 million, after adjusting the initial subscription amount, again in a 50:50 ratio.
The companies said future funding requirements will be met proportionately based on shareholding, subject to business needs and board approvals.
Focus on production and distribution support
The partners will support the joint venture across production of sub-components, sales, business development, services, distribution, warehousing and logistics for the JV’s products across specified markets.
The collaboration is expected to strengthen capabilities in the commercial vehicle component ecosystem while combining Bosch’s technology expertise with TSF Group’s manufacturing and distribution network.
TSF Group legacy
TSF Group represents the businesses of the T. S. Santhanam family and traces its roots to the erstwhile TVS Group.
The group established its independent identity following the partition of the TVS Group and has built a diversified presence across automotive components, distribution, dealerships and financial services.
Its businesses include companies such as Wheels India, Brakes India, Sundaram Finance and India Motor Parts and Accessories.
TSF Group currently reports revenues of over ₹30,000 crore, employs more than 42,000 people, operates over 1,200 branches and 36 factories, and serves customers across India, North America, Europe and Asia Pacific.