Shares of TVS Motor Company climbed more than one percent on Wednesday after the company announced their new distribution partnership with ETG Logistics. However, the scrip gave up initial gains soon after following the weakness in overall market.
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Under the partnership, ETG Logistics will operate 30 dealerships for the two-wheeler company in South Africa. It will also support TVS Motor with dedicated sales, service, spares and customer relationship management, including the assembly set-up and training centre in Johannesburg.
This distribution partnership will help expand and strengthen TVS Motor’s presence in the South African market.
“ETGL comes with rich experience, deep understanding and vast knowledge of the market. South Africa is an important market for us, and ETGL’s extensive distribution network, along with our shared ethos and values, makes them the ideal strategic partner,” said R Dilip, President - International Business, TVS Motor Company.
TVS Motor Company has a presence in over 70 countries across Africa, South East Asia, the Indian Sub-Continent, Latin America and the Middle East, while ETG Logistics is a division of ETG (Export Trading Group) – a global conglomerate present in 48 countries.
Shares of TVS Motor Co have fallen nearly 15 percent in the past three months whereas the benchmark Nifty 50 has surged over 10 percent during the same period.
At 0921 IST, TVS Motor’s shares were trading 0.3 percent lower at Rs 552.35 apiece on the BSE.