Carnation Auto is an initiative by Mr. Jagdish Khattar, with a vision of developing India's largest independent multi-brand automobile sales and service network. Carnation is setting up a state-of-the-art network of integrated auto solution hubs across the country to enhance the overall experience of owning a car and to optimize the cost of ownership. Carnation provides complete solutions for almost all brands of cars, starting from quick servicing, mechanical repairs, body repairs, accessories, insurance, car exchange and even doorstep service through a chain of workshop on wheels. The Company has recently got into a strategic alliance with Magneti Marelli a $7 Billion subsidiary of the Fiat Group to service premium cars and to market spares in the Independent aftermarket.
Carnation Auto raised its first round of funding of Rs108 crore from marquee investors PremjiInvest and IFCI Ventures. Recently it received a loan of Rs 170 crore from Punjab National Bank for executing the nation-wide rollout of its multi-brand auto solution hubs.
Our aim as an industry consolidator is to organize the much fragmented auto solutions market. Through this multi-brand innovation, we would also like to provide an alternative to the customer if he is not satisfied with his current service provider. All auto related solutions under one roof for all brands, pan India, is also an incredible value to those families having multiple brands and models, corporate, fleet owners and taxi operators.
In an effort to provide total auto care to our customers under one roof, Carnation has tied-up with leading names in the automobile industry. Tie up with 3M & Gard X are for value added services, Castrol for lubricants, Bridgestone for tyres and Asian PPG & Akzo Nobel for paints. By adopting world-class equipment and IT systems we have been able to implement thorough transparency in the system while enhancing the quality of service in all our processes. Carnation has implemented SAP Dealer Business Management suite in India for the first time with TCS as the technology partner. SAP plays a key role in improving productivity and facilitates real-time access on a single database. It helps in efficient scheduling and utilizing assets more effectively. The technology assists in visibility across locations in India and also manage inventory from site to site.
We are also looking to create joint ventures in some key states and union territories that are capable of running successful automobile dealerships. This endeavor would provide us with critical local insights and help in accelerating the roll out of operations. At present four Joint Venture partners are already on-board and we are in discussion with several others.
Carnation Auto already has more then 150 Franchises Hubs operational across India, i.e. Delhi, Gurgaon, Pune, Lucknow, Patna, Ghaziabad, Bhopal, Jaipur, Mumbai, Chennai and Noida.
To be India's largest automotive product sales and service provider.
CARNATION VALUE PROPOSITION
The value proposition of Carnation impacts various target audiences:
- The corporate see value in having one service provider for all their cars across the country.
- The customer looks at Carnation as one-stop-shop offering convenience, quality and affordability for all the cars in the family.
- Automobile Manufacturers see this as route to market for those with limited market share & those experiencing capacity constraints with their existing networks.Insurance companies see the benefit with a nationwide network where aggregation helps in increasing efficiencies and reduce costs. Carnation being independent doesn't have to meet targets for parts and body panels; hence its focus is on repair rather than replace helping to reduce the claims size significantly.
- Parts and Accessories companies have an access to customers and alternate distribution network through Carnation.
- Convenience for buyers
- Service support to OEM's in cities where there are customers but no dealer.
- Create in some select cities- Auto Cities, which include multiple dealerships, pre-owned vehicles, multi-brand workshops etc.
- Insurance companies are faced with delays due to insufficient capacity and higher costs during the process of processing their claims. The company will be able to offer transparent solutions to these insurance companies, bringing about significant efficiencies and savings in claims processing.