Mahindra First Choice Services (MFCS) - a multi-brand car services firm owned by Mahindra & Mahindra - on Wednesday unveiled its plans to raise to over 500 the workshops it runs.
The workshops network would be expanded to more than 500 during 2016-17 with a turnover target of Rs.150 crore, the company said. MFCS at present has 81 workshops in 60 cities.
By April 2016, the company has targeted to increase the total count of workshops on franchisee basis to 200, and planned at least 300 more during 2016-2017.
The company logged a turnover of Rs.50 crore during the last fiscal year, and expects to increase it by 50 percent to Rs.75 crore in the current fiscal year.
"During 2016-17, the turnover is expected to double to Rs.150 crore," the company's chief executive officer Y.V.S. Vijay Kumar told media persons here.
A capex of Rs.250 crore over a five-year time frame has been allotted in this endeavour.
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"The car services market is estimated at more than Rs.20,000 crore, which is more or less divided equally between OEM (original equipment manufacturer) dealers and independent garages. However, multi-brand workshop chains have great potential," he said.
The services market is expected to reach Rs.33,000 crore a year in the coming five years.
The company operates on a cluster-based model where it has divided the country's geography into 43 distinct clusters - each having a network of workshops and is serviced by one warehouse.
Kumar claimed car services and maintenance prices at MFCS are cheaper than other garages. A customer can save 10 percent on the labour cost and between 10-40 percent on the spare parts.
MFCS is procuring parts for various vehicles of different brands from OEMs as well as component makers besides importing some of them.
"We are in talks with Hyundai, Ford and Toyota for procurement of parts," the official said.
The company is also offering a 20 percent discount to drivers associated with Ola Cabs to service their cars.