Jagdish Khattar firm plans to enter spare parts biz

Written by Corporate Bureau | New Delhi | Updated: Jul 3 2009, 03:48am hrs
Former Maruti managing director, Jagdish Khattar-led Carnation Auto, the multi-brand sales and service outlets, is considering introducing spare parts under its own brand.

Carnation Auto, which has earmarked an Rs 1,000-crore investment for rolling out 100 outlets across the country over the next four years, has also started sourcing components from Thailand and is exploring possibilities to import from other countries, including the UAE and Taiwan.

Our objective is to have private labeled parts under Carnation brand, says Khattar, CMD, Carnation Auto without divulging details.

Currently discussions are going on with some auto parts manufacturers from Dubai and Taiwan for import, which will start once the volume of our service increases, Pramod Agarwal, senior vice president, Carnation Auto said.

The multi-branded auto business, which has managed to attract investment of Rs 108 crore from PremjiInvest and IFCI Ventures, has at present nine outlets, which would be expanded to 30 locations by the end of this fiscal.

Carnation Auto, which has invested Rs 50 crore so far, is eyeing revenue of Rs 75 crore for the current fiscal. We are expecting to break-even by the third quarter of 2010-11 financial year, Deepak Singhal, chief financial officer, Carnation Auto said.

According to Khattar, the company has started sales of used cars on a pilot basis in Mumbai which will be launched commercially very soon and going forward the company will also introduce car customisation and retail sales of different brands.