First Choice Services (MFC Services) has entered into an asset acquisition
agreement with the official liquidator of Carnation Auto (India) Pvt. Ltd.
(CAPL). As a result, MFC Services will acquire key assets of Carnation’s
car-servicing business including the trademark ‘Carnation’, its website,
software licenses and Carnation’s workshop network. It will also drive MFC
Services strategic vision of organising the unorganised Indian automotive
Auto was started by Jagdish Khattar, the erstwhile Managing Director of Maruti
Udyog Ltd (now Maruti Suzuki). The company aimed to develop India's largest
independent multi-brand automobile sales and service network. Carnation Auto
raised its first round of funding of Rs 108 crore from Premji Invest and IFCI
Ventures. It also received a loan of Rs 170 crore from Punjab National Bank for
executing the nation-wide rollout of its multi-brand auto solution hubs.
despite the best of Khattar and his son Kunal Khattar, the company failed to
turn around and slipped into massive losses. Khattar and his team were then left
with no option but to liquidate his company.
Dubey, Group President (HR & Corporate Services) CEO (After-Market Sector)
said, “This strategic acquisition will strengthen Mahindra First Choice
Services’ business and its leadership position in the Indian automotive
aftermarket industry. 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.”
are pleased to welcome Carnation’s franchisees into the MFC Services family.
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 YVS Vijay Kumar, CEO, and Mahindra First Choice Services.
asset acquisition does not include the liabilities and past dues of CAPL which
is currently under liquidation. MFC Services will now increase its penetration
in metro cities, especially in Delhi, the NCR and Mumbai, which are strategic
to its business growth plans.