Carnation Auto, promoted by Jagdish Khattar, former chairman and managing director of Maruti Suzuki, has signed a joint venture pact with the Variety Group to set up multi-brand auto solution hubs in Andhra Pradesh.
The venture would offer service and maintenance, sale of secondhand cars, insurance services, and accessories i. e. all services under one roof. The company, in near future, has also plan to sell new cars.
Under the arrangement, Carnation would hold a 51 per cent stake in the latest JV while Variety will hold the remaining stake in it.
According to company officials, the Hyderabad-based group will invest Rs 40 crore in phases for setting up about 10 auto solution hubs including four in Hyderabad.
It may be noted that Carnation Auto has received Rs 250 crore of investment, including Rs 108 crore by Premji Invest and ICICI Ventures. In addition, the company already has JV partners in Uttar Pradesh, West Bengal, Karnataka and Maharashtra.
Carnation Auto intends to open about 100 outlets across the country at an investment of about Rs 1,000 crore in the next four years to set up a pan-India network of outlets to provide automobile solutions.
According to reliable sources, out of total planned outlets, about 40-50 outlets are expected to go on stream by March next year. For the current financial year, Carnation Auto is expecting revenues of Rs 300 crore.