[TusharK]

Mahindra First Choice Services (MFC) has acquired Carnation Auto India Pvt. Ltd. for an undisclosed amount.



MFC will control key assets of Carnation's car-servicing business, the 'Carnation' trademark, its website, software licenses and workshop network. With this deal, MFC will add about 100 new outlets and service stations to its roster.

Mahindra First Choice plans to have 1,000-1,200 outlets in the next 3-4 years. The company is also looking to raise Rs. 120 crore and aims to achieve a turnover of Rs. 500 crore in the next 5 years. Currently, MFC services about 4.8 lakh cars annually, which is reported to rise to 6 lakh cars. The acquisition of Carnation will also allow MFC to expand its footprint into cities like Delhi-NCR and Mumbai.

Carnation was founded in 2008 by Jagdish Khattar, ex-MD of Maruti Suzuki.

Source: Economic Times

Link to Team-BHP News

[Dry Ice]

Originally Posted by TusharK

Mahindra First Choice Services (MFC) has acquired Carnation Auto India Pvt. Ltd. for an undisclosed amount.

On a weird tangent - I got a call from carnation today morning about some "offers" running on car servicing this month. I have never used carnation earlier so don't think they should have my number. OTOH, I regularly used to get such calls from Mahindra.

Is Mahindra sharing its customer data to Carnation to increase its user base? With almost non-existant data protection laws in our country who can say - maybe, maybe not!

[GTO]

Related Thread (Carnation bankrupt - Punjab National Bank files insolvency plea)

Carnation is a damaged brand that stands for nothing. I don't think Mahindra should use it & neither do I think they have any intentions to. Mahindra might have just included it as part of the deal so that no one else uses the brand. Considering they bought it from the liquidator, this would have been a fire sale (read = throwaway pricing).

I think what Mahindra got out of this were the Carnation franchises.

Here's an interesting paragraph from the press release:

This 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.

A good article on Carnation's troubles - link.

[Futurestan]

I remember the Carnation branch near our place shutting down a few years ago. We had a few service coupons that we got from them and before shutting down they called us to come and collect the amount that we had paid earlier. They had good infrastructure to handle various types of services.

[Saanil]

Originally Posted by GTO

Related Thread (Carnation bankrupt - Punjab National Bank files insolvency plea)

Here's an interesting paragraph from the press release:


A good article on Carnation's troubles - link.

I do not understand this part - how can one acquire the assets of the company without taking over its debt and liabilities?

[GTO]

Originally Posted by Saanil

I do not understand this part - how can one acquire the assets of the company without taking over its debt and liabilities?

Because they didn't 'acquire' the entire company. Mahindra First Choice merely picked up what it wanted from the liquidator.

Basically, all those who have given loans to Carnation are trying to get back whatever they can from its assets as Carnation is unable to repay its debts.

[Sebring]

Having burnt my hand I will not even turn in the direction of Carnation, forget going there. No matter who purchased it. Mahindra having bought this is a big mistake as in Bangalore, people just hate this brand. Carnation was so incompetent that even a corner shop mechanic could deliver a better job at 1/10th the cost. I was seriously disappointed after they wrecked one of our cars in the past both mechanically as well as aesthetically. On top of that, they refused to release the car till payment was done. Big mistake, as we then used our clout to get the car out!