Auto major Mahindra & Mahindra Limited (M&M) has launched a new after-market business vertical, which, with the inclusion of franchisees, is expected to generate a turnover in excess of Rs 6,500 crore by 2015.

?We (M&M) are aiming a turnover of Rs 3,000 crore plus from the after-market vertical. The rest would come from our franchisees,? said Rajeev Dubey, president (human resources, after-market and corporate services) and member of the group management board of Mahindra & Mahindra Limited.

Dubey added that of the total turnover of Rs 6,500 crore planned, Mahindra First Choice Services will contribute Rs 1,000 crore, Rs 3,800 crore will come in from the Mahindra spares business and the remaining will come in from Mahindra First Choice, the used car business of the company.

M&M already has a presence in the used car business through Mahindra First Choice initiative, in which M&M owns 76% stake. The company already has a presence in the spare parts business.

Together, it has a turnover of around Rs 720 crore in these two segments. The company is now venturing into the multi-brand service business through Mahindra First Choice Services, a 100% subsidiary of M&M, which is into into servicing of multi-brand automobiles. All these businesses will be part of the new after-market business vertical. ?We have created a separate vertical considering the scale of opportunities that lie untapped in the after-market space,? said Anand Mahindra, vice-chairman and managing director, Mahindra Group.The shares of M&M closed on Monday at Rs 635.25, down 0.08% on the Bombay Stock Exchange (BSE).

Till now, M&M’s spares business was focused on farm equipment and automobiles. Now, it will also look into non-M&M vehicles. ?We plan to attain a turnover of over Rs 1,000 crore by 2011,? said R Bhurat, chief executive, Mahindra spares business, Mahindra & Mahindra Limited. M&M opened its first Mahindra First Choice Services outlet in Mumbai on Monday and plans to have 691 such service outlets in the country.

?During the first and second years, we plan to have company-owned outlets. Later, we will look into the franchisee model for the service outlets,? said Dubey.

An investment of Rs 250 crore will be made by M&M over the next five to seven years.

Also planned are 230 Mahindra First Choice outlets and super stores. ?We are looking at 30 super stores over five years,? said Vinay Sanghi, chief executive officer, Mahindra First Choice.