New Business Vertical For Mahindra and Mahindra

Tuesday 29 April 2008, 00:00 AM by Satish

Mahindra and Mahindra have planned to add a new vertical to their business portfolio. It shall now integrate three of its business units in the after-market sector. Mahindra and Mahindra currently has multi-brand service chain, Mahindra First Choice. It also caters to sale and purchase of pre-owned cars with the same brand name. Mahindra Spares Business caters to both Mahindra and non-Mahindra spares business. All three businesses shall now be consolidated to mark a stronger presence of the company in the after-market.

“We plan to invest almost Rs 250 crore in this segment, while there will also be other investments made by the franchisees,” said Rajeev Dubey, president (HR, after-market & corporate services) & member of the group management board, M&M. Mr. Dubey shall head this new business vertical as well. “We have also tied up with Shell for the lubricant requirements of the venture,” he added.

M&M shall initially aim at Hyundai, Maruti and Tata models that are 2-8 years old. It also plans to open nearly 700 outlets by FY18. After market is nearly non-existent in India while in the western countries it marks a strong presence. M&M has ventured into the new domain with the aim of being the market leaders in the coming years.

“In order to create, in the organised sector, a business ecosystem, which replicates the ecosystem for new vehicles, I am happy to announce the formation of the after-market sector,” said Mr Mahindra.

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