Carnation Auto on an expansion spree after raising Rs. 190 crores
Subscribe to NewsletterPlease fill your name and email ID to get our daily auto news mailer.
Carnation Auto, an initiative by ex-Managing Director of Maruti Suzuki Jagdish Khattar, is set to grow further with an investment of Rs. 190 crores. This sum came from investors like Gaja Capital Partners, Premji Invest and IFCI Ventures. Khattar has declined to state his share in the company or that of other financial investors.
At present, Carnation Auto, which started in 2009, operates 24 multi-brand service points, 17 second-hand vehicle dealerships and more than 50 mobile workshops. Currently, its dealerships are in 16 cities, such as Jalandhar, Ludhiana, Chandigarh, Noida, Gurgaon, Mumbai and Chennai. Though all these outlets are run by the company itself, Carnation Auto will opt for the franchisee model in the next phase of expansion. It will also work on enhancing its presence over the Internet in order to harness the potential of the online car retail business. In the next phase of growth, it will also expand its service portfolio and may provide insurance services from its outlets.
This multi-brand auto sales and service network has been received favourably in the market as its client base includes not just individual car owners but fleet operators as well. On this Khattar said, "The independent multibrand concept is now well accepted and will grow further." He continued, saying, "There is tremendous opportunity in the business and we are servicing cars from various brands at our outlets." The operating profits of Carnation vary from location to location, said Khattar.
However, the company has been facing challenges of its own in the industry, as a few manufacturers do not retail authorised components to service centres outside their official dealership network. Nevertheless, Khattar believes that this is not a major issue as parts for models produced by major car makers are easily available. He says that only a few companies try to restrict the supply of components. The Competition Commission of India is already looking into this matter.
Comments on this article
Post a comment on this article
Carnation Auto is one of the WORST automobile service centers in India. The web is full of horror stories of innocent ppl being fleeced by these so called "multi brand service centers"I personally, have been a victim on more than 1-2 occasions by their centers in bangaloreJune 22, 2012 by Abhinav J
- Demand for DZire outpaces Swift in April for the first time in April 2013
- General Motors India to hike prices by 1.5 per cent from first week of June
- Launch of new Land Rover Defender postponed till 2015
- Hyundai kicks off Trophy Tour for the 2013 ICC Champions Trophy in New Delhi
- Datsun to launch 5 new models in India, first will be a hatchback
- Mahindra Verito Vibe to begin new chapter for the utility vehicle maker in India
- Bajaj Auto eying the launch of new models in Discover and Pulsar series
- LPG and CNG kits to soon come with warranty
- Sahil International signs up Hrithik Roshan as the new face of Ground Zero
- Exploding car bombs in Makhachkala killed 3 and wounded over 20
- Several Shia and Sunni Muslims killed during car bombings in Iraq
- Mercedes-Benz A-Class to get 1.6 litre and 2.2 litre engines in India
- Ford India's innovative strategy to use Child Parts reduces the cost of ownership
- Harley Davidson India introduces 24x7 Road Assistance Program
- Shrinking fuel price differential boosts demand for petrol vehicles in India