Mahindra First Choice to buy key assets of Carnation Auto1 min read . Updated: 03 Dec 2018, 02:21 PM IST
Mahindra First Choice will buy the Carnation trademark, its website, software licences and Carnation's workshop network
Mumbai: Mahindra First Choice Services, the servicing arm of automaker Mahindra and Mahindra Ltd is acquiring key assets of Carnation Auto (India) Pvt. Ltd, a Noida-based aftersales and service company, the company said in stock exchange filing. Mahindra First Choice will buy the Carnation trademark, its website, software licences and Carnation’s workshop network.
“With this acquisition, we will add significantly to MFC Services existing network of 330 workshops. This will enhance our presence across India and help us offer our customers a more comprehensive and attractive service solution," said Y.V.S. Vijay Kumar, chief executive of Mahindra First Choice Services.
The acquisition will also drive Mahindra First Choice’s strategic vision of organizing the unorganized Indian automotive aftermarket industry, the statement said.
Carnation was founded by Maruti Suzuki’s former managing director Jagdish Khattar in 2008.
This asset acquisition does not include the liabilities and past dues of Carnation, which is currently under liquidation. Mahindra First Choice will now increase its presence in metro cities, especially in Delhi, the National Capital Region (NCR) centred on Delhi, and Mumbai—regions strategic to its business growth plans.
“This strategic acquisition will strengthen Mahindra First Choice Services’ business and its leadership position in the Indian automotive aftermarket industry," said Rajeev Dubey, group president (human development and corporate services) and chief executive (aftermarket sector) at Mahindra First Choice Services.
“It will also bring new growth opportunities, thanks to synergies between the two brands, and expanded access to new institutional customers including insurance companies and fleets," he added.