CarZ to take on Carnation Auto

Co-promoted by two ex-automotive industry professionals, CarZ started operations in February 2010 and currently operates out of four service locations in Hyderabad only. Venu Donepudi, co-founder, CarZ, says: “The plan is to have 20 operational outlets in 24 months from now, primarily focused in South Indian states.” A recent investment of $ 5 million by private equity player IndoUS Venture will be utilised for the expansion. “We plan to expand to 300 locations across India by 2015,” adds Donepudi.

The business model for CarZ is similar to that of other players like Carnation and Mahindra First Choice. The company operates in a franchisee model with options for the franchisee to choose. CarZ Grande is a one-stop shop for all car services with a modern workshop equipped to handle all electrical and mechanical repairs, accident repairs, car wash, accessories fitment and tyre services. CarZ Express is an advanced yet compact workshop equipped to handle all common electrical and mechanical repairs including general maintenance services.

CarZ works with and has strategic partnerships with some technology and automotive component suppliers in India and overseas. “Some reputed companies we work with are Wurth, BASF, IndianOil Corporation and Amaron including several in the garage equipment and spare parts areas. CarZ also procures high quality aftermarket parts from reputed part manufacturers like Bosch, AC Delco, Rane, TVS, Mahle, and LuK to name a few,” says Donepudi.

As an allied business, CarZ has also tied up with partners to retail pre-owned cars, though it doesn’t have any plan to enter the used-car business directly. Entrants like CarZ to the multi-brand servicing business will help expand this growing industry and make it more organised.