Mahindra First Choice Services (MFCS), the multi-brand car service workshop and a wholly-owned subsidiary of Mahindra and Mahindra, is targeting a 50-per-cent jump in turnover to ₹75 crore this fiscal.

According to YVS Vijay Kumar, CEO of MFCS, the company is eyeing fast growth in turnover on the back of aggressive expansion plans for its workshop network.

The company is looking to add 120 workshops — mostly franchisees — by the end of this fiscal. It will take the total tally of workshops to 200. MFCS has just 20 company-owned workshops. By FY17, the company targets around 400 more workshops, all through the franchisee-model.

“We have been growing fast and our turnover last fiscal stood at ₹50 crore. This year we are targeting ₹75 crore. Once the 200-odd workshops are operational, we will look at an aggressive growth on turnover to around ₹150 crore,” he said.

In FY13, it had reported a turnover of ₹12 crore, which rose to ₹30 crore in FY14.

Investment

MFCS has so far invested ₹200 crore in the business that includes setting up a mode for procurement of spare-parts.

Another ₹50-crore investment will be made over the next year towards setting up of 43-odd spare part hubs and warehouses. The spare-parts hub and warehouses are expected to help reduce lead time in availability of parts.

The company is in talks with original equipment makers (OEM) that include the likes of Maruti, Hyundai, Honda, Toyota, etc. It has initiated discussions with automobile component makers for spare part procurement. “We will look to service all cars priced below ₹15 lakh,” Vijay Kumar said.

Currently, the car spare-part and servicing market in India is pegged at ₹20,652 crore, with a 50-50 division between OEM garages and independent workshops. The segment is expected to reach ₹33,000 crore in another three to four years.

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