Former MD of Maruti Suzuki, Jagdish Khattar announced his next venture —Carnation Auto. With a vision of developing India’s largest independent multi-brand automobile sales and service network, he also announced the company’s first round of funding of over Rs 1 billion from marquee names in the industry such as PremjiInvest and IFCI Ventures.
While PremjiInvest, a fund sponsored by IT giant Azim Premji, has committed to invest Rs 800 million to acquire a significant minority stake in the company, IFCI Ventures will be investing Rs 280 million.
Carnation Auto’s launch eyes on the fact that new car sales are projected to be 3 million and the car park 19 million by 2015. Besides, 60 to 70 per cent of car owners go outside of the manufactures network post warranty. The concept would provide an alternative to these customers.
Elaborating on his vision for Carnation Auto, Khattar said, “Our auto solution hubs will provide everything a car owner would need to maximise his ownership experience”.
“The multi-brand concept will allow us to provide automobile manufacturers, especially new entrants and those with limited market share, small car park & capacity constraints, a more efficient route-to-market through faster nation wide retail presence, scale efficiencies and servicing support,” Khattar further added.
Carnation will focus on providing service, mechanical repair and body shop solutions across its facilities. It also plans to launch its service and sales network in 100 locations across 65 cities throughout India over the next 5 years.
Further, the company is also tying up with leading value added product and service providers for tyres, batteries, car detailing, accessorizing, CNG/LPG fitment and windshield replacement among other things. It will subsequently also develop multi-brand facilities to retail new and pre-owned vehicles.