TVS Electronics board approves merger with TVS eTechnology

The board of TVS Electronics Ltd (TVS-E) has approved the merger of TVS-E with TVS eTechnology at stock swap ratio of 1:1, subject to requisite

approvals. The board seeing several synergies in the businesses of the two companies has decided to merge the entities. TVS eTechnology would be

renamed, as 'TVS Electronics Ltd' and the new entity would be listed in all the stock exchanges where the present TVS Electronics is listed. 

TVS eTechnology is a national player in the customer support, technology support and maintenance services (TMS) areas. TVS eTechnology Limited offers

field customer support to products of TVS-E. TVS-E, which is also in the fast-growing, Business Process Outsourcing (BPO) space through its contract

manufacturing and electronic manufacturing services, has also identified other synergistic BPO areas with high potential for growth. One of the key

BPO segments identified is Technology Maintenance Services (TMS), with field service as well as remote technology maintenance and support. 

According to Gopal Srinivasan, Director, TVS Electronics, "This merger is unique as the merged entity will leverage the best practices of the two

companies, identify new marketing opportunities and is expected bring big benefits for TVS-E. The synergies derived from this merger provide scope for

economies of scale and reduction in operating and administrative costs". 

TVS-E sees big opportunities in the TMS sphere with more and more global brand coming into the country and offering lifetime warranty on products. 

This trend provides greater business opportunities for companies with good geographical spread and with good remote management delivery capabilities. 

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