BHUBANESWAR, OCT 29: Mahindra First Choice Services (MFCS), a multi-brand car services firm owned by Mahindra & Mahindra plans to raise the number of workshops to 200 by end of this fiscal and 600 by FY 2016-17 with a turnover target of Rs 150 crore, an official of the company said.
“We have been growing fast and our turnover last fiscal stood at Rs 50 crore. This year, we are targeting Rs 75 crore. Once the 200-odd workshops are operational, we will look at an aggressive growth in turnover to around Rs 150 crore,” MFCS CEO Y V S Vijay Kumar told reporters here today.
The Company is eyeing a fast growth in turnover on the back of its aggressive expansion plans for its workshop network, Kumar said.
In terms of expansion, the company is looking to add 118 workshops – mostly franchisee owned franchisee operated (FOFO) – by the end of the current fiscal to take the total tally of the workshops to 200.
Presently, it has 82 workshops, including 20 company owned company operated, across the country. By FY 2016-17, MFCS is targeting around 400 more workshops.
As far as Odisha is concerned, MFCS would start operating its first workshop at Cuttack by February 2016, and open 35 workshops by December 2016.
MFCS 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 that car services and maintenance prices at MFCS, which believes in “replace less, repair more” principle, are cheaper than other garages. A customer can save 10-15 per cent on the labour cost and between 15-25 per cent on spare parts.
The workshops would give service for all brands of cars besides Mahindra, he added.
The car service industry is presently having a size of 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, said Kumar adding that this industry would assume the size of Rs 33,000 crore by 2020.
