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Shriram Automall India Ltd will roll out 20 automall facilities across the country this fiscal, its Chief Executive Officer Sameer Malhotra has said.
Through an automall facility, this company, a 100 percent subsidiary of Shriram Transport Finance, provides a platform for buyers and sellers to transact in used vehicles—commercial vehicles, cars, tractors and also two-wheelers.
“We are only a service provider. We provide a platform but we don’t buy or sell the used vehicles. We bring buyers and sellers of used vehicles together”, Malhotra told Business Line here.
SAMIL is sort of a pioneer in this space (automall) and as an organised player accounts for a very small share of the nearly Rs 1 lakh crore largely unorganised used vehicles market in India.
In the just concluded financial year ended March 2014, SAMIL had facilitated transactions to the tune of Rs 1,500 crore, which reflected a 50 per cent increase over Rs 1,000 crore done in the previous fiscal, Malhotra said.
The company has now entered the Delhi market with the launch of an automall in Narela (near Sanjay Gandhi transport nagar).
“We are hoping to help transact at least 100 vehicles every month at Narela. This automall will be for both used cars and commercial vehicles. We have about 4.5 acres in Narela. We are also going near our customers”, Malhotra said.
Plans are afoot to launch automalls this fiscal in Kanpur, lucknow, Nagpur, Guwahati, Patna, Ranchi, Karnal, Jodhpur, Shimla, Trissur and Vijayawada among other cities and towns, he added.
SAMIL has no immediate plan to list the company’s equity shares in a stock exchange, he said.
“The company has no current requirement for any capital funds”.
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