Dutch navigation service provider TomTom today announced that it has completely bought out minority shareholders in its Indian joint venture by acquiring the 10 per cent stake it didn't own for an undisclosed sum.
The joint venture was formed in 2008 with the Indian industrial group Kalyani, and was initially called Tele Atlas Kalyani India Pvt. Ltd. which was later renamed to TomTom India Ltd. when Kalyani group withdrew from the JV and TomTom increased its stake in the venture from 60 per cent to 90 per cent late last year.
"By owning TomTom India Ltd 100 per cent we have full flexibility to execute our growth strategy. Our recent product introduction of the VIA series of our PND range is a great first step and we look forward to continue to develop bespoke products for the Indian market," said Jocelyn Vigreux, Managing Director TomTom India.
Founded in 1991, TomTom is a supplier of in-car location and navigation products and services. The company is headquartered in Amsterdam and its products include portable navigation devices, in-dash infotainment systems, fleet management solutions, maps and real-time services.
According to the company, India already has 22 million cars on the road while new car sales are forecast to grow to 4 million by 2015. In addition, due to the strong economic growth, the demand for high-quality navigation solutions and maps in the country will only increase with time.
Last month the company entered entered the Indian market by introducing the VIA series of personal navigation devices in the country. TomTom’s competitors in the Indian market include navigation service providers like MapMyIndia.