Carnation Auto to expand sales and service network

Carnation Auto, a multi-brand auto sales and service network started by former Maruti managing director Jagdish Khattar, is on an expansion drive. The company, started in early 2009, will enter newer cities while also expanding on the internet for car retail business. 

Khattar said the company will follow the franchisee route as it moves to newer cities. Carnation currently runs 24 multi-brand service hubs, 17 second-hand vehicle outlets and over 50 mobile workshops. It is present in 16 cities, which include Jalandhar, Ludhiana, Chandigarh, Noida, Gurgaon, Mumbai and Chennai through company-operated stores. 

"There is tremendous opportunity in the business and we are servicing cars from various brands at our outlets ," he said. 

The company has raised about Rs 190 crore and the investors include Gaja Capital Partners, Premji Invest and IFCI Ventures. Khattar did not disclose his holding in the company or of the other financial investors. Asked whether the business is making operational profits, he said, "It depends from location to location." 

Carnation will now be expanding its bouquet of offerings and is looking to offer car insurance facilities from its outlets. The company, however, has faced issues on parts availability as sometimes car companies are not ready to sell them to workshops outside their dealer network. Khattar, however, said that the matter is not a serious issue as parts of the big manufacturers are readily available and only a handful of companies hold on to such supplies. The matter is already under consideration of the Competition Commission of India. 

Khattar said Carnation is getting customers in the form of fleet operators as well as individual car owners. "The independent multibrand concept is now well accepted and will grow further."