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Old 24th May 2010, 18:27   #1
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Default Carnation ties up with GenPact

Didn't I tell you they are serious; Jagdish Khattar is a formidable leader. He's now investing in an end-to-end ERP / CRM system.

Link to a recent Carnation Thread (CARNATION Multibrand Car Service - Initial review)

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Genpact Signs 5-Year Contract with Carnation Auto

Genpact to design and implement business processes for India's first independent multi-brand auto sales and service venture


NEW Delhi May 24, 2010 – Genpact Limited (NYSE: G), a global leader in business process and technology management, and Carnation Auto, India's first independent multi-brand auto sales and service venture, today announced the signing of a five-year contract for Carnation Auto’s operations. Genpact will provide Carnation Auto with a unique end-to-end service model that will enable the company to focus on its core business of offering customers in India with a one-stop-shop for all of their car needs.

Under this engagement, Genpact will design and manage Carnation Auto’s core processes, including finance & accounting, customer relationship management, procurement & supply chain management and human resources. These key processes will be supported by Genpact’s analytics and reengineering capabilities to enhance their overall management and delivery.

Launched in July 2009, Carnation Auto offers a state-of-the-art network of integrated multi-brand auto sales, services and related solutions for car owners across the country. Carnation provides complete solutions for almost all brands of cars, starting from quick servicing, mechanical repairs, body repairs, accessories, insurance, pre-owned cars, car customization solutions with DC Design and even doorstep service through a chain of workshops on wheels. Carnation Auto already has 18 Auto Solution Hubs operational across India.

“We are delighted to be working with Carnation Auto as they grow to become India’s first and largest independent multi-brand auto sales and services company,” said Harpreet Duggal, SVP and Business Leader, Genpact. “Genpact has been providing integrated services and solutions to the global automobile industry for over five years and is well positioned to devise and implement processes for Carnation Auto’s unique business model and enable them to effectively scale their operations in India,” he added.

Jagdish Khattar, Chairman & Managing Director, Carnation Auto, said, “We are a dynamic, fast growing company and it is critical for us to work with the best in the industry. We will leverage Genpact’s global expertise and enhanced process understanding to achieve scale in a cost effective and efficient way. Through this relationship, Carnation will transfer non-core support function activities to Genpact so as to have 100 percent focus on our core business of helping customers maximize their car ownership experience.”

According to the Society of Indian Automobile Manufacturers, monthly car sales crossed 150 thousand for the first time in February 2010 with a 33 percent year-on-year jump, signaling a revival in sales on the back of the slowdown witnessed by the industry last year. This presents a huge opportunity for the multi-brand concept, which is relatively new in India.

About Genpact:

Genpact is a global leader in business process and technology management, offering a broad portfolio of enterprise and industry-specific services. The company manages over 3,000 processes for more than 400 clients worldwide. Putting process in the forefront, Genpact couples its deep process knowledge and insights with focused IT capabilities, targeted analytics and pragmatic reengineering to deliver comprehensive solutions for clients. Lean and Six Sigma are an integral part of Genpact’s culture and Genpact views the management of business processes as a science. Genpact has developed Smart Enterprise Processes (SEPSM), a groundbreaking, rigorously scientific methodology for managing business processes, which focuses on optimizing process effectiveness in addition to efficiency to deliver superior business outcomes. Services are seamlessly delivered from a global network of centers to meet a client’s business objectives, cultural and language needs and cost reduction goals. Learn more at Welcome to Genpact - A Global Leader in Business Process Management.

About Carnation Auto:

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 multi-brand auto sales, services and related 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, cars exchange, car customization solutions with DC Design and even doorstep service through a chain of workshop on wheels. The Company has recently tied up 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 already has 18 Auto Solution Hubs operational across India; one each in Amritsar, Gurgaon, Bangalore, Karnal, Jalandhar, Kochi and Surat; two each in Chennai, Noida, three in Mumbai and four in Hyderabad.

Carnation Auto had raised its first round of funding of Rs108 crore from marquee investors Premji Invest and IFCI Ventures. Recently, it received debt funding of Rs170 crore from Punjab National Bank for executing the nation-wide rollout of its multi-brand auto solution hubs. It has many strategic international business partners like 3M, GardX, Akzo Noble, Castrol and Bridgestone. For further information, please visit Carnation.
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Old 24th May 2010, 19:18   #2
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but hows canation doing financially ? i mean havent heard about their business anywhere as wether they are doing good or else .
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Old 24th May 2010, 19:33   #3
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Originally Posted by quattroa4 View Post
but hows canation doing financially ? i mean havent heard about their business anywhere as wether they are doing good or else .
Looking at Jagdish Khattar's reputation and his knowledge, he would never be interested in short term financial gains,

He is projecting for around 5-10 years down the line where it seems Carnation Auto might be helping more customers than some of the own car A.S.S.

He already launched it big with 18 centres across India and now comes this whammer, Pretty soon, all post warranty cars would be seen rushing to these centres.
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Old 24th May 2010, 19:38   #4
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Well just half an back, saw a carnation sticker on a vehicle's rear glass. Was wondering what it was about. Now I know. (sorry, missed on mention of the brand name else where).
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Old 24th May 2010, 19:40   #5
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Thanks GTO !

Was just thinking about Carnation & going through TBHP members not so good experiences there. After reading the unsatisfactory experiences, i decided to get my Swift panels repainted at the MASS.

No one doubts Jagdish Khattar & his abilities. The fact that he is getting his funding shows the faith that investors are ready to show in his venture. Judging by the reviews, Carnation has a long way to go in the very basics of gaining a customer's trust & ensuring that customers get the very same if not better experience that they do at Maruti.

Wish Mr. Khattar would streamline things on the ground. All the world's best ERP isnt going to help Carnation where it truly matters - in the human touch points that a customer experiences, quality of work done, availability of spare parts, etc.
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Old 24th May 2010, 22:30   #6
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Originally Posted by nirmaljusdoit View Post
Thanks GTO !

Wish Mr. Khattar would streamline things on the ground. All the world's best ERP isnt going to help Carnation where it truly matters - in the human touch points that a customer experiences, quality of work done, availability of spare parts, etc.
This is in fact what this association will focus on - "Genpact will design and manage Carnation Auto’s core processes, including finance & accounting, customer relationship management, procurement & supply chain management and human resources". Genpact employees will actually manage this for Carnation assuring better service, more efficiency - and its performance linked. It's more than just an ERP implementation.
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Old 25th May 2010, 14:41   #7
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He already launched it big with 18 centres across India and now comes this whammer, Pretty soon, all post warranty cars would be seen rushing to these centres.
this might be a great idea, but still, as quite a few pointed out, managing customers in face to face dealings will be crucial.

Sent my dads Wagon R for service in carnation. after getting the car back the reaction was " i think all they did was put thier sticker in front and back of car. car hardly feels serviced well" . this is what they need to sort out to survive long term.
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Old 25th May 2010, 14:58   #8
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At the moment all things boil down to the monkey on the ground!
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Old 25th May 2010, 15:27   #9
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I think this is a seriously good model.
Carnation's next step will be to partner/franchise all the well doing garages in the cities.

I honestly believe the company in the long run will only be second to Maruti.*
but for that, they need o get customers in big time!!

*Terms and conditions apply.
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Old 25th May 2010, 16:10   #10
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When i had visted Carnation, i noticed they were using SAP as their ERP systems.

For all the money they invest in the processes, i wasnt too impressed with the way they went about helping me procure a spare part i required for my Ikon. After initially pestering me to place the order with them, the service advisor later stopped attending to my calls once i asked to go ahead with the order. As a customer, my expectations are in binary : Can you or Can't you?

If the latter was their answer, they should have been open about it.. not hide behind the cover of caller-ID. Members have also mentioned that Carnation is apparently not servicing or attending to Ford cars. So much for an independent service outlet!
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Old 25th May 2010, 16:19   #11
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Have a strong feeling, the likes of Carnation would be very strong in the times tocome.

But such a time is surely some 20 years away, dont think India is still ready for a set up like the Carnation.
There are still lots of people who think the dealership of Maruti are actually owned by Maruti same for the Tata dealership. They seldom realize its a different business entity. That being the case for them to digest a set up similar to carnation is some decades away.

Talking about the topic, not sure how much synergy the company like Genpact could bring in, them being in consumer durables background.
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Old 25th May 2010, 16:32   #12
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If you are not satisfied with Maruti dealership, you can complain to Maruti. What about Carnation?
Again, the parts availability and timeline of repairs is something customers of Maruti (or Hyundai) might not like.
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Old 25th May 2010, 17:39   #13
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JK will have to face stiff resistance from influential car makers to reach an acceptable level for servicing and procuring OEM spare parts. For auto makers/dealers, A.S.S. and spare sales are annuity business and the biggest money spinners than selling cars. Why do you think Trident Hyundai is very keen on keeping your car "well serviced" even when it is 10 years old and run 100,000 kms?
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Old 25th May 2010, 18:21   #14
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Well... it would be better if they concentrate more on customer satisfaction. I visited them last year in July and wasn't happy. A colleague of mine visited them last month and regretted it (got very bad service).
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Old 31st May 2010, 20:28   #15
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I don't think he is a formidable leader, GTO. Else, there will not be consistently poor reviews, and that too, initially, when a new broom is supposed to sweep well.
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