- TVS Group: The TVS Group has been the largest automotive component group in India since 1911. With total annual sales of about $1.7 billion, it is also a major player in other sectors such as two-wheelers, electronic equipment and auto ancillaries. The Group comprises about 29 different companies, several of them joint ventures and most of them highly profitable. The major companies in the TVS group, apart from the companies under Sundaram Finance Group, are TVS & Sons, Lucas TVS, TVS Motors, Sundaram Clayton, Sundaram Industries, Southern Roadways and Sundaram Fasteners. The Group has, over the decades, built a strong franchise and a reputation for conservatism, integrity and creditworthiness.

The proposed investment is an up to $45 million A loan for IFC’s own account.

43.61 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	43.61
Equity

* These investment figures are indicative

The company is headquartered in Chennai, the capital of Tamil Nadu in India with 122 branches located nationwide.

This is an FI Type 1 project. SFL will be required to develop an environmental management system. SFL must require that investments under relevant operations meet host country environmental, health and safety requirements. IFC will assess SFL’s capacity for environmental review and will provide training as necessary.
Location of environmental documents in locally affected community

Development Impact: This project’s main development impact is to support a strong well-managed Indian financial services group and assist it to grow across its businesses. The project will enable the company to - expand lending to the truck transport segment which is an important constituent of the SME market and is gaining increasing significance with the recent improvements in road infrastructure, - contribute to improving access to financial products and services in semi-rural areas of India. The truck financing market comprises about $1.5 billion per year in annual disbursements and encouraging greater flow of this credit to truckers in the smaller towns and semi-rural areas will assist in the sustainable growth of those economies. Fit With World Bank Group Strategy: As part of IFC’s regional business development strategy, we want to increase our presence in Southern India, and strengthen our relationship with leading financial institutions which can innovate and introduce new products or develop new markets. This second investment with the Sundaram group, with its focus on southern India and range of financial services, supports the overall World Bank Group strategy. In addition, the Sundaram group has interests in auto components, which is another priority area for business development. IFC’s Role: IFC’s role in this project is to  - encourage SFL to expand lending to truckers in semi-rural areas, and - extend SFL’s liability profile with 6 year money as against the 2-3 years funds that are easily available locally. SFL is a premier client and this loan will be a quality asset for IFC. This transaction is also a potential door-opener for deals with other companies in the TVS Group, especially in the auto ancillary industry in which we see a significant role for IFC. Finally, SFL is a key player in southern India which is a region that IFC is now looking to make a strong impact.