After announcing its intention to enter into earth equipment business through a dedicated subsidiary recently, Shriram Transport Finance Company Ltd (STFC) said it would set up a wholly owned subsidiary under Shriram Automall India Ltd headquartered in Chennai. Shriram Automall will engage in the business of creating infrastructure for trading in pre-owned commercial vehicles.
The new subsidiary will set up ‘auto malls’ in different parts of the country, refurbish and sell pro-owned commercial vehicles under the name ‘New Look’, provide web-based computerised touch screen kiosks in all the branches across the country under the name ‘One Stop’, and will also provide a host of other business services to the trucking community in the courtly under one roof. The subsidiary will be earning fee income for these services rendered.
With an asset base of close to Rs 30,000 crore under its belt with a widespread network, the move is aimed at enrolling more truck owners under its belt apart from increasing its asset size aggressively. The move also reflects the company’s strategy to become a one-stop-shop solution for commercial vehicles in India.
A senior official of the company said, the company is yet to finalise the details and would soon announce the same, the roll-out plans and revenue generation target among others.