Automartindia, a major player in the organised second-hand car market, plans to launch an initial public offering soon.
"We are planning an IPO as the Mahindra Group, the largest stakeholder in the company, has all its ventures listed on bourses," said Felix Louis, assistant vice-president, Automartindia.
The company is promoted by the Mahindra Group, Housing Development and Finance Corporation and Sah and Sanghi.
On Friday, Automartindia launched its third retail outlet in Ahmedabad and seventh in Gujarat.
Meanwhile, Automartindia plans to open 100 retail outlets on franchisee basis by March 2006. At present, the company has 48 operational outlets all across the country.
"Our volumes are likely to go up considerably in the next two-three months when all 74 outlets will become operational. We are already in talks with a number of car dealers to bring them under the Automartindia banner," Louis said.
"We plan to join hands with six more franchisees here in next three months".
Gujarat is the second largest market for Automartindia following Maharashtra.
"At present, we are selling around 900 second-hand cars per month from our outlets. We will shortly be in a position to sell an average of 2,000 second-hand cars per month once all our franchisees become fully operational. We may also announce an IPO and get listed on bourses after opening 100 outlets," said Louis.
"We have already signed contracts with 26 franchisees and their outlets are under various stages of development," he added.
Automartindia gives assurance to its customers about the performance of a car and past records to avoid legal hassles. It also offers warranty depending on the car model.
| Automartindia may foray into service centres Automartindia is planning to launch car accessories shortly. The company is already in talks with a number of accessories manufacturers to source accessories. "We are planning to launch our own service centres and accessory brands shortly to add value to the services being offered by Automartindia. We are planning to launch our own service centre in each city where we are operating," said Felix Louis, assistant vice-president, Automartindia. However, Louis avoided commenting further on its plans saying, "It is too premature to make any announcement on upcoming service centres and accessories brand. The plans are in progress and should be out in next two-three months. Branded accessories through our outlets will offer wide choices, primarily to our own customers," said Louis. At present, the company is in tie-ups with Hyundai and Maruti for servicing cars for their customers. Some of the accessories that the company will sell from its showrooms include wheelcaps, steering covers, seat covers, lighting systems and the likes. |
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