The TVS group has infused around Rs 42 crore in its newly-floated subsidiary TVS Energy Pvt Ltd, marking the group's entry into the power business.
The foray into power sector began with Sundaram Clayton Ltd (SCL), a group company, which invested Rs 4.5 crore in the equity capital of TVS Energy. In December, TVS Motor has invested Rs 5 lakh as equity in TVS Energy, which became its wholly-owned subsidiary on December 3, 2009.
This makes TVS Motor the first automobile company in the country to foray into power generation. Both TVS Motor and SCL hold the entire paid-up capital of TVS Energy amounting to Rs 42 crore.
While company officials were not available for comment on TVS Energy's business plan, Venu Srinivasan, chairman and managing director, TVS Motor, earlier told Business Standard that the company’s focus would be on wind and micro-hydro followed by solar and biomass.
He said the power operations would be run through Sundaram Clayton, which was planning to set up a 5 Mw wind farm in Tamil Nadu, said Srinivasan.
