Lubes maker Castrol India Limited (CIL) on Friday said it will acquire a 7.09 per cent stake in TVS Automobile Solutions' digital subsidiary Ki Mobility Solutions with a planned investment of Rs 487.5 crore in an all-cash deal.

With this strategic investment, CIL aims to expand its presence in service and maintenance for both internal combustion engine (ICE) and electric vehicles (EV) and leverage myTVS' digital and operational capabilities, a release said.

Besides, the partnership will also offer the potential for Castrol and KMS to collaborate and partner in select markets beyond India, it stated.

This collaboration will leverage each other's strengths and expand the domestic automotive aftermarket ecosystem via 'myTVS', KMS's digitally integrated multi-brand service platform for two- and four-wheelers, it added.

"CIL will acquire a 7.09 per cent stake in KMS with a planned investment of up to Rs 487.5 crore," said the release.

CIL's existing presence in service and maintenance includes its 220 auto service passenger car workshops in 110 cities pan-India and 42 express oil change outlets for two-wheelers.

"Castrol's nationwide footprint in India, combined with myTVS' digital strength will bring structure to the currently fragmented automotive service sector and also accelerate business growth for KMS.

"In addition, Castrol will explore business and technology collaborations with KMS to enable readiness for transition to electric mobility," said Sandeep Sangwan, Managing Director, CIL.

G Srinivasa Raghavan, Managing Director, ki Mobility Solutions, said, "Our partnership with Castrol will significantly enhance the ownership experience for customers across the lifecycle of their vehicles. Besides, it will offer numerous synergy options like scaling-up of business offerings to electric vehicles, and the potential to expand our footprint beyond India."