Chennai, Nov 23 (IANS) Multi-brand car servicing major Mahindra First Choice Services is getting into servicing two wheelers while expanding its current network and looking out for capital infusion of about Rs 100-125 crore for business from a strategic partner, said a top company official.
The company, a wholly owned subsidiary of Mahindra and Mahindra Ltd., is also planning to have a presence in petrol bunks offering minor repair services and a tie-up has been made with Hindustan Petroleum Corporation Ltd., he added.
"We are getting into servicing multi-brand two wheelers and a pilot project is underway in Bihar. The business offers good potential as only 30 per cent of the after sales service in the case of two wheelers are with the authorised service centres and the remaining is with the unorganised segment," Y.V.S. Vijaykumar, Chief Executive Officer said here.
He said, in December, the company will be launching the two wheeler servicing business nationwide and the target is to have about 2,500 service centres under its brand by 2023.
Vijayakumar said, Mahindra First Choice Services has already launched private label parts for two wheelers.
On the four wheeler segment, the company is targeting to increase its network from the present 330 to 1,000 by 2023.
"We have good traction in the C and D level cities where original or quality parts and good service are not available. The company has 35 warehouses across the country supplying spare parts to the service centres," Vijayakumar said.
He said the focus is on servicing cars rolled out by large volume players like Maruti, Hyundai, Tata Motors, Mahindra and Mahindra, Ford and others.
He said the company is hoping to up its revenue by 50 per cent as compared to previous fiscal's turnover of Rs 91 crore.
"In two years time our target is to touch a turnover of Rs 300 crore," Vijaykumar said.
The revenue stream for the company is the joining fee and annual royalty paid by the franchisee and also the sale of annual maintenance contracts, extended warranties, sale of spare parts, providing garage management software as a service and others.
According to Vijayakumar, getting spare parts from the vehicle manufacturers is not a problem nowadays.
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: IANS