Carnation Auto, used car sales and services firm is planning to enter automotive spare parts business. The firm was established by Jagdish Khattar who served as the managing director of Maruti Suzuki.
Carnation's plan is to spread its verticals into different automotive segments. The firm recently has crossed 100 franchisees and its main aim is to expand its number to 150 by March 2017 and to further add 150 outlets in the fiscal year 2018.
Back in 2008, the firm started operations with a capital-intensive model through company-owned used car dealerships. However, a couple of years later it gave up this model and took a franchisee route.
As of now, the Carnation won't manufacture spare parts but will source these from tier-II and tier-III component makers and supply through its platform, says Khattar. He further added that it will be a huge revenue generator.
According to Carnation, its experience in servicing cars for nearly eight years had given it insights on fast-moving components.
Currently, the firm has outlets in Delhi, Uttar Pradesh, Rajasthan, Maharashtra and Gujarat. It is also adding eight outlets every month, mostly by converting existing workshops.