The branding rights of Carnation Auto India Private Ltd has been attained by Mahindra First Choice Services including some of their key assets for an undisclosed sum. This deal will lead to network expansion of potentially 100 outlets and service networks and help Mahindra accelerate its plan of having 1,000-1,200 outlets in the next three to four years.
The company entered into an asset acquisition agreement with the official liquidator of Carnation Auto (India). As a result, Mahindra First Choice (MFC) Services will acquire key assets of Carnation’s car-servicing business including the trademark ‘Carnation’, its website, software licences and workshop network. It will also drive MFC Services strategic vision of organising the unorganised Indian automotive aftermarket industry.
“The industry is ripe for consolidation in the aftermarket space; whoever attains scale will be the winner. Scale allows one to offer much better value proposition to customers and franchisees, helps procure parts at better rate and ensures it is available sooner,” commented YVS Vijaykumar, Chief Executive, Mahindra First Choice Services.
This asset acquisition does not include the liabilities and past dues of CAPL currently under liquidation. MFC Services will now increase its penetration in metro cities, especially in Delhi, the NCR and Mumbai, which are strategic to its business growth plans. MFC plans to have over 2,500 outlets by 2022 and the company is also sprucing up its digital infrastructure to ensure that it can participate in the growth opportunity presented by both brick and mortar and online platforms.