Shriram Automall India Limited, a subsidiary of Mumbai-based Shriram Transport Finance Company (STFC), is planning to open 60 centres by 2012 with an investment of Rs 100 crore.
Speaking on the launch of its two initiatives — Shriram OneStop and Shriram Newlook — here on Tuesday, UG Revankar, deputy managing director, STFC, said, “Automall is a platform for the second-hand vehicle market to transact in transparency. Each automall centre will come up on 4-5 acres with an investment of Rs 1.5 crore and will function on a lease basis.”
Four of the centres, with a total investment of Rs 6 crore, would be functional in three-four months in Baroda, Chennai, Pune and Delhi. “We are expecting an additional Rs 100 crore revenue with 2 million customers and 100,000 registrations by 2012 from the current 5,000 registrations and 700,000 customer base,” Revankar added.
Sriram Newlook is a platform for transaction of authentic vehicles, where old trucks from the market is refurbished and sold under this brand name. In Andhra Pradesh, Newlook has five branches in Hyderabad, Rajahmundry, Visakhapatnam, Nellore and Vijayawada. “Till now, 200 sellers and close to 600 buyers have registered in AP. We expect to sell 1,500 vehicles this year,” Hanumanthu Deepak, national recovery head, STFC, said.
Customers will be free from brokers and RTI documentation by its Onestop service, a computerised touch screen kiosk. The company would install 500 Onestop service in 500 locations, which will be a technical platform for the transactions.
“Currently customers can transact with a registration fee Rs 100. From the next quarter, we will be charging one per cent of the selling cost,” Revankar said.
