Carnation Aims To Increase Footprint To 200 In 2 Years

Indian Express:

Used cars seller Carnation, the company promoted by former Maruti Udyog chief Jagdish Khattar, will expand its reach to 200 outlets from the current 41 in the next two years. “We should increase our network to 200 in the next two years which will include both owned and franchisees,” said Khattar, the chairman and managing director.

Going forward, the company will rely more on franchisee route. Carnation, which has a network of over 41 outlets (24 maintenance hubs and 17 pre-owned car showrooms) across the country, opened its first franchisee in Thane today.

Khattar said the company has invested a “couple of hundred crores” in creating its brick and mortar network from scratch, and will henceforth concentrate more on the asset-light franchisee model to grow.

The used car market will grow at over 20 percent annually till FY15, he said, adding that at present around 30 lakh used cars are sold in the country every year, which is expected to increase to 76 lakh by end of 2014-15.

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