Plans to go public by 2013
Mahindra FirstChoice Wheels Ltd, the multi brand pre-owned car company and part of Mahindra & Mahindra, on Wednesday signed a memorandum of understanding with MyTVS to launch a round-the-clock roadside assistance programme for Mahindra FirstChoice customers.
The company is also planning an initial public offering (IPO) in 2013. “Our plan was to look at IPO in five years from the time we received private equity (PE) investment in mid 2008,” Rajeev Dubey, president -human resource, after-market and corporate services, and management board member, Mahindra & Mahindra, said.
The company has set a target of Rs 2,500 crore turnover by 2013. It is likely to close the current fiscal with Rs 400 crore as compared with Rs 140 crore a year ago, an increase of 36 per cent.
Last year, it sold 10,255 used cars and is likely to close this fiscal with 18,000 cars. For 2013, it has set a target to sell 100,000 cars, said S Saha, chief executive officer, Mahindra First Choice. For this, it is looking at increasing the number of outlets to 300 from the present 120.
Meanwhile, MyTVS said it was not planning to go ahead with its used car business. “For us, service is the core business and we want to focus on that. When we earlier planned to enter the used car business, we did not realise the industry (service), which we are already in. Our capability and strength remain in this business,” said R Dinesh, joint managing director, TVS.
The company at the time of launching its MyTVS brand in 2003 had stated it would take up three initiatives — multi-brand service facilities, pre-owned car business, and roadside emergency assistance services.
