Carnation Auto India Ltd, a multi-brand car sales and service enterprise, has been formed with an investment support of Rs.80 crore from Wipro Chairman Azim Premji-owned Premji Investment and Rs.28 crore from IFCI Venture Capital Funds. Jagdish Khattar, the former MD of Maruti Udyog is going to head the business. It was understood that majority of the company stake is held by Khattar whereas the other two companies hold 25-30% of stake. The business will have pan-India presence across 100 locations in 65 different cities over next five years. The organization will follow franchise as well as joint venture partnerships. Jagdish Khattar, CMD of the new company, said: "We plan to set up about six outlets in the National Capital Region, Hyderabad and Cochin, and take it up to 30 by the next year. We have three locations in hand and will be developing them to make them operational. We plan to develop one-stop auto solution hubs catering to all needs—maintenance, insurance, CNG/LPG retrofit kits, accessories—of different brands of cars, under one roof." The company is in talk with leading car manufacturers eying for strategic partnership for service backup. It has plan for setting up Carnation Realty, a wholly-owned subsidiary, for providing realty infrastructure to the parent company. Carnation Realty’s portfolio will include developing new outlets, multi-brand showrooms and automobile hubs. "Our realty company will go for buying land as real estate is a key part of our business model. We are negotiating with several real estate companies in different states to develop properties for commercial use. Some locations have already been identified in different states," Mr Khattar added.
