OBJECTIVE

Our objective is to build the largest organized and

most trusted quality pre-owned car sales franchise
system in India.
Group Overview
• The US$ 6.3 billion Mahindra Group is among the top 10 industrial houses in India.

• Mahindra & Mahindra is the only Indian company among the top three tractor
manufacturers in the world.

• Mahindra is the market leader in multi-utility vehicles in India. It made a milestone entry
into the passenger car segment with Logan.

• The Group has a leading presence in key sectors of the Indian economy, including the
financial services, trade and logistics, automotive components, information technology,
infrastructure development and After-Market.

• With over 62 years of manufacturing experience, the Mahindra Group has built a strong
base in technology, engineering, marketing and distribution which are key to its evolution
as a customer-centric organization.

• The Group employs over 75,000 people and has several state-of-the-art facilities in India
and overseas. The Mahindra Group has ambitious global aspirations and has a presence
on five continents.

• It has made strategic acquisitions across the globe including Stokes Forgings (UK), Jeco
Holding AG (Germany) and Schoneweiss & Co GmbH (Germany).

• Forbes has ranked the Mahindra Group in its Top 200 list of the World's Most Reputable
Companies and in the Top 10 list of Most Reputable Indian companies.
The group at a Glance
Automotive Financial Services Sector
Domestic Operartions Mahindra & Mahindra Financial Services Ltd
International Operations Mahindra Insurance Brokers Ltd.
Mahindra Renault Private Limited (MRPL) Mahindra Rural Housing Finance Ltd (MRHFL)
Mahindra Navistar Automotives Limited (MNAL)
Mahindra Navistar Engines Private Limited (MNEPL) Infrastructure Development Sector
Mahindra Holidays & Resorts
After-Market Sector Mahindra Lifespaces Developers Limited
Mahindra Spares Business Mahindra World City
Mahindra First Choice Mahindra Infrastructure Developers
Mahindra First Choice Wheels Ltd. Acres Consulting Engineers

Farm Equipment Sector

Domestic Operartions Information Technology Sector
International Operations Tech Mahindra
Mahindra Gujarat Tractor Bristlecone
Mahindra Agribusiness
Mahindra Powerol Mahindra 2 Wheelers
Mahindra USA
Mahindra Australia
Mahindra China Tractors Mahindra Partners
Mahindra Intertrade
Mahindra Systech Mahindra Odyssea
Forgings Mahindra Steel Service Center
•Mahindra Forgings Limited - India Mahindra MiddleEast Electrical Steel Service Centre (MMESSC)
•Mahindra Forgings – Ag Mahindra Logistics Ltd.
Engineering Services Mahindra Retail

•Mahindra Engineering
•Engines Engineering Italy
•Mahindra Aerospace
Stampings
Steel
Ferrites
Contract Sourcing
 The future lies in Organised Retail

• The sector is set for an exponential growth in the years to come

• Thanks to rising incomes, shrinking time, and value for money offered.
Wants to upgrade and starts demanding.
• Consumers increasingly prefer organized retail, looking into convenience,
peace of mind, one stop shop and are ready to pay a premium
• Larger presence of established global brands
• Organised retail promises better quality and service back-up.
• He looks for innovative product and professional shopping experience.

25
organised retail ($ bn) 23

20

15

10
7.5

0
2007 2011
Drive to the future faster : Organised Pre-owned Car Retail

Projections for the future:

With the value based propositions and increasing trend of
branded retail outlets, organized pre-owned market is tend to
move from a current volume of 1 lac car to 5.3 lac by FY2011.
Pre-owned car business opportunity…

The pre-owned car market size will grow more than the
new car market size by FY 11

The new car will be see a

10% growth YOY basis The projected passenger car industry
whereas the pre-owned 2.50
segment will see a 20% rise.
2.00

The pre-owned car volume 1.50

will see a rise from a current

1.00
volume of 1.30 million to
2.60 million by FY 14. 0.50

0.00
FY09 FY 10 FY 11 FY 12 FY 13 FY 14
The organized sector will Exit
see a growth with the
PASSENGER CARS UNORGANISED CAR VOL
unorganized shrinking YOY ORGANISED CAR VOL MFC
basis.. MTV
The organized pre-owned market in USA.

USA sells 44 million pre-owned

cars every year and 17 million new
cars. i.e. Pre-Owned Car sales are
2.5 times the new car sales.

We are on a fast track towards a

similar market for pre-owned
cars
Mission
To create an ecosystem for pre-owned cars
.
that is similar to the one prevailing for new cars
A small introduction..
Mahindra First Choice Wheels Ltd.

Our Identity..

• Pioneered the concept and is now India’s premier multi brand pre-owned car retailer.

We stand for..
• Trust
• Transparency
• Expertise in pre-owned segment
• Customer experience

And the way we differentiate ourselves..

• We deal in all makes and offer wider choice
• Completely refurbished cars to the exacting standards
• Cars are CERTIFIED over 118 check points
• Sales is backed up by warranty
• One stop shop on finance, insurance, accessories etc.
• Trained and qualified staff
Mahindra First Choice Business Plan…

WE WILL RANK

6 th
(ALL INDIA
MANUFACTURERS
)
FY13

180 Cities
FY12
FY11 430 Stores
140 Cities
FY10 100 Cities 100000 Cars
331 Stores
60 Cities 220 Stores 74000 Cars
120 Stores 44000 Cars

18000 Cars
Mahindra First Choice plans to exploit this huge potential
by setting up

1. COCO Superstore

Showroom
Infrastructure

COCO
Parking
Manpower SUPERSTORE Space

OUR BRAND PILLARS

We will have 11 of these Superstores
Working
in keyCapital
cities by FY12
2. Franchisee Super Stores

Model: Profit sharing 35:65

Location: Top 25 car park market
Space: 30000 – 40000 Sq. ft.
Volume: FY – 900 Cars, SY – 1200 cars, TY – 1500 cars

Working Procurement
Capital Team

MAHINDRA FIRST CHOICE

Showroom
Training
FRANCHISEE

Infrastructure
FRANCHISEE
SUPER STORE
Customer
Manpower
Footfall

Parking We will have 20 of these storesCertification

Space in by FY12 Warranty
3. Royalty Stores

Model: Per car basis

Location: A & B class cities
Space: Upwards of 2000 Sq. ft.
Volume: FY – 200 Cars, SY – 300 cars, TY – 400 cars

Working Procurement
Capital Support

MAHINDRA FIRST CHOICE

Showroom
Training
FRANCHISEE

Infrastructure
ROYALTY
STORE
Customer
Manpower
Footfall

Parking We currently have 80 of these stores,

Certification
Space will have 300 by FY12 Warranty
Brand building…
MFCWL BRAND BUILDING
HYBRID MODEL

ONLINE OFFLINE

PRICING INDEX RETAIL STORES

ONLINE DISPLAY INVENTORY DISPLAY

INVENTORY POOL FINANCE, INSURANCE NATIONAL

PRINT NET
TV HOARDINGS RADIO
ATL MEDIA MARKETING
CAMPAIGN
NET, TEL, SMS ENQUIRY WALK-IN ENQ

BUY BUY

SELL SELL
LOW COST HOUSING PARKING CORPORATE MEGA BUS LOCAL
TAGGING
LEAFLETS DEMO LOT ACTIVITY PROMOS MELAS SHELTER PRINT MEDIA

BTL

SMS LEADS NET LEADS TEL LEADS

CRM

WALK-INS
Nationwide strategic alliances…

Auto Finance Auto Insurance Auto sector

HDFC
HDFC Ergo
Mahindra X-Mart

Tata Capital

Reliance

Magma

Sundaram Fin

Family Credit

Mahindra Finance

IDBI

SBI
What is in for the CAR BUYER?
TRUST
• The brand – Mahindra & Mahindra
• Quality of service & Transparency in dealing.

PEACE OF MIND
ONE STOP
SHOP • Cars certified over 118 check points.
• A extensive history check on documents and smooth transfer of ownership.
A
FAMILY • Warranty of various tenures (Silver, Gold & Platinum Warranty)
DESTINATION • Value for money

CONVENIENCE
• Widest choice amongst brand & segments
• Easy Finance and instant insurance
• Wide range of accessories to choose from and vehicle detailing.

AFTER SALES
• After sales free services
• Buy back facility
What is it in for the Franchisee?

With a moderate investment we assure you

• Fastest scalability
• Significant revenue growth
• Superior financial returns
MARKET INTELLIGENCE

First Choice
Expertise PROCESS & TRAINING

PROCUREMENT

INVENTORY MANAGEMENT

REFURBISHMENT

Superior
SALES Financial
Returns
AFTER SALES
We shall share with you our expertise….

MARKET INTELLIGENCE PROCESS & TRAINING PROCUREMENT

Demographic Staffing Pricing index

Demand Business Development Product Mix
Segment Profitability Technical valuation
Consumer Behavior Cost Control Refurb estimation
Competition Motivation Channel development
Web utilization
INVENTORY MGMT

Quantity
Segment Mix
Product Mix
AFTER SALES SALES REFURBISHMENT Refurb TAT
Sales TAT
Warranty Selling index Pricing index Web utilization
Free Service BTL activity Product Mix
CSI CRM Technical valuation
Documentation Leakage Analysis Refurb estimation
Web utilization Channel development
Finance Web utilization
Insurance
Return on investment for our Franchisee

• Part of trusted national network.

• Consistent and growing business.
• Image

The bottom line

1st year - Breakeven and profitability in.
2nd year - Upwards of 48% ROI
ROI of 48%

PROFITABILITY

MFCWL
IN THE
TOP 30 BEST ROI of 22%
INVESTMENT
OPPORTUNITIES

Source: Magazine Franchisee Plus 2009

1st YEAR 2ND YEAR
BUSINESS MODEL
•What should Dealer to provide
Showroom Iinfrastructure, Parking Space, Working Capital and Manpower

• Showroom infrastructure
Required showroom area: 1000 sq.ft. to 1500 sq.ft.
(That is, approx. 90 sq-meters to 135 sq-meters)

• Parking space required

Parking space: for 20 to 25 cars

• Manpower to be provided by Dealer

- One Showroom Manager
- Two Procurement Executives
- Two Sales Executives
- One Customer Relationship Executive

• Working Capital Requirement

- Class 'A' Town - Rs. 37 Lacs
- Class 'B' Town - Rs. 27 Lacs
- Class 'C' Town - Rs. 20 Lacs