Business EconomyPosted at: Oct 28 2026 4:53PM


TVS Motor Demerges Consumer Finance and related business undertaking

Chennai, Oct 28 (UNI) The Board of Directors of TVS Motor Company, part of TVS Venu, today approved a Composite Scheme of Arrangement (Scheme) to demerge its consumer finance and related business undertaking into a separate holding company.
Under the proposed scheme, shareholders of the company will receive equal number of shares in the resulting company as in TVS Motor, enabling them to participate in the future growth of both the mobility and consumer finance businesses.
The consumer finance and related business have expanded in scale and scope and a dedicated structure will provide greater strategic focus, flexibility in capital allocation and the ability to pursue opportunities across the consumer finance and related sectors. The proposed structure will better align shareholders with the future growth of these businesses while supporting their continued expansion, according to a company statement.
In August 2026, the NBFC Companies within the Group have approved a proposal to merge and consolidate the Group’s consumer finance businesses into a single operating platform. The proposed demerger is the next step in this strategic process and is intended to segregate the Consumer finance and related businesses from TVS Motor into a dedicated platform and reflects the Group's long-term conviction in India's financial services sector and its role in supporting economic growth, financial inclusion and rising aspirations across the country.
The proposed structure will also enable TVS Motor (TVSM) to sharpen its focus on its continuing automotive and mobility businesses. The Group remains committed to the growth and development of both the dedicated consumer finance platform and TVSM’s continuing business.
Company Chairman Sudarshan Venu said: "India's rapidly expanding financial services sector offers tremendous opportunities for long-term growth. Driven by digitisation, expanding credit access and the aspirations of India's growing middle class, financial services are playing an increasingly important role in one of the world's fastest-growing large economies. At TVS Venu, we have built meaningful presence and capabilities in this sector through sustained investments over 15 years. Our NBFC TVS Credit, along with Home Credit India, serves more than 45 million customers across 100,000 touchpoints in India".
"Earlier this year, we announced the acquisition of education finance company Varthana, which will accelerate our participation in secured and longer-tenure lending. Our investment in Jana Small Finance Bank was made with a view to supporting high-quality institutions that address the huge opportunity arising from India's evolving financial needs and expanding digital financial ecosystem",
he said.
The businesses being demerged have developed strong capabilities, customer relationships and platforms that position them well for the future. We believe this new structure will create additional value for stakeholders while providing these businesses with greater strategic autonomy.
The demerger will allow them to pursue opportunities across consumer finance and related sectors and allocate capital in line with their growth priorities. It positions them to realise the full potential of their assets and capabilities while enabling TVS Motor Company to remain focused on strengthening its leadership in mobility globally. Importantly, our shareholders will continue to participate in the future growth of both businesses."
The Composite Scheme will also envisage merger of TVS Motor Services, a wholly owned subsidiary with the company for streamlining the corporate structure and enhancing operational synergies.
The Scheme is subject to requisite statutory, regulatory, shareholder and other approvals as may be applicable.
In addition, the Board also approved, acquiring controlling interest in STPL Trading and Services Private Limited which is in the process of merging with TVS Credit Services. Pursuant to this, the company will effectively get an additional ~2.4% holding in TVS Credit Services post the consummation of merger.
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