So is it all a tale of making the most of the first mover advantage terminology? Perhaps not. For till date, there have been quite a few that have taken a plunge in this ‘seeming’ blue-ocean. MyTVS from the TVS Group’s stable, Mahindra FirstChoice (a joint venture between ICICI Bank and Mahindra & Mahindra) and Mukesh Ambani’s Reliance AutoZone are names that represent similar formats that were launched much earlier. So what is so unique about Khattar’s model? One word - scale! All the other aforementioned names missed out on achieving nationwide presence and were therefore just restricted to a particular geographical region. For example MyTVS operates in about 5 southern states while Reliance AutoZone operates in just three metros. So, what comes first for Khattar – offering diversified services or increasing reach? Khattar is targeting more states before he provides varied services through Carnation.
When it comes to generating a decent initial response, the company has been involved in quite a number of Below-The-Line activities, than opt for high-priced media vehicles like TVCs or print campaigns, as Khattar explains, “Being a start-up, we chose mediums that were suitable for the needs of the business rather than making expensive choices...” Talking about diversifying its service offerings, Carnation also recently announced the launch of its first used car sales facility at Mumbai, which was in the pilot stage for the past two months. So there you are – three businesses already; how many more on Khattar’s mind, remains the question.
Carnation has of late also ventured into the insurance business, and its operation includes renewal of expiring insurance policies. “We have just started with the insurance business and as the number of locations increase, the vertical will gradually build up,” added Khattar. Apart from this, the company also has plans of starting an in-house accessory and spare parts brand. When asked about the revenue targets, Deepak Singhal, Group CFO, Carnation avers, “We are targeting revenues of Rs.75 crore for FY2010...” He also revealed that Carnation “expects to break even by Q3, FY2010-11.” However Khattar is not very optimistic about the break-even coming soon as he opines, “When you expand at such a speed, being a start-up, the break even point automatically gets stretched.” Yes, he is no oblivious to competitive threats [“You will see a lot more players entering this arena going forward,” he remarks], but looks like the company which has already raised Rs.108 crore from investors like Azim Premji (Rs.70 crore) and IFCI Ventures (Rs.28 crore), and is planning to raise an additional Rs.170 crore primarily by way of debt funding from banks is in for a big surprise to competitors. Well, if investment plans are anything to go by, Khattar surely has his hands on the wheel. Yes, risk there is, but can you name a successful entrepreneur who never treads the double-edged path of risk and return? Khattar is no novice, and his Carnation is set to re-write the rules of the auto-service industry!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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When it comes to generating a decent initial response, the company has been involved in quite a number of Below-The-Line activities, than opt for high-priced media vehicles like TVCs or print campaigns, as Khattar explains, “Being a start-up, we chose mediums that were suitable for the needs of the business rather than making expensive choices...” Talking about diversifying its service offerings, Carnation also recently announced the launch of its first used car sales facility at Mumbai, which was in the pilot stage for the past two months. So there you are – three businesses already; how many more on Khattar’s mind, remains the question.
Carnation has of late also ventured into the insurance business, and its operation includes renewal of expiring insurance policies. “We have just started with the insurance business and as the number of locations increase, the vertical will gradually build up,” added Khattar. Apart from this, the company also has plans of starting an in-house accessory and spare parts brand. When asked about the revenue targets, Deepak Singhal, Group CFO, Carnation avers, “We are targeting revenues of Rs.75 crore for FY2010...” He also revealed that Carnation “expects to break even by Q3, FY2010-11.” However Khattar is not very optimistic about the break-even coming soon as he opines, “When you expand at such a speed, being a start-up, the break even point automatically gets stretched.” Yes, he is no oblivious to competitive threats [“You will see a lot more players entering this arena going forward,” he remarks], but looks like the company which has already raised Rs.108 crore from investors like Azim Premji (Rs.70 crore) and IFCI Ventures (Rs.28 crore), and is planning to raise an additional Rs.170 crore primarily by way of debt funding from banks is in for a big surprise to competitors. Well, if investment plans are anything to go by, Khattar surely has his hands on the wheel. Yes, risk there is, but can you name a successful entrepreneur who never treads the double-edged path of risk and return? Khattar is no novice, and his Carnation is set to re-write the rules of the auto-service industry!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...For Exclusive Footage by Sunday Indian Click Here
Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)
B-schools expect higher rate of campus placements this year
IIPM B School : King Khan, Bollywood Badshah and Quiz Wiz — that’s Shah Rukh Khan for you
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