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CURIOUS 2019
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.
Spearheading the spare part brand MFC at Mahindra First Choice
Services Ltd
Yogesh Deshpande, (Area Business Head, Rest of Maharashtra, Mahindra First Choice
Services)1, was driving from Mumbai to Pune, after the annual planning meet in December
2018, when he got some problem in the brake-pad of his car. This was the breakthrough
moment for him to think about the2 potential growth prospects for Mahindra First Choice
(MFC) spare part brand, for the multi-brand Car service business of Mahindra First Choice
Services Ltd (MFCSL). With this experience on Express highway, Yogesh recalled his old
service experience problems of spare parts, when MFCSL had to source these from the parent
companies of customer cars. Yogesh was satisfied with the prompt availability of the required
spare part, probably due to the recently started BAZAAR3channel for the distribution of MFC
brand spare parts in the open market.
Management mandated him to have a business plan of MFC brand spare parts. The MFC
spare parts brand, which was primarily launched to support the needs of MFCSL outlets,
needed to be marketed aggressively across the auto spare part market with the BAZAAR
distribution channel. The launch of the two-wheeler service vertical created an additional
opportunity for him to grow. He decided to have a business plan by Feb 2019. It was crucial
for him to leverage the opportunities coming from both the verticals i.e. four wheeler and two
wheeler services. He knew that MFC spare part brand was a great marketing tool for him to
grow service store network, hence started building the blocks of his business plan.
The multi brand car service market4:
The automotive aftermarket industry in car services is pegged at Rs 20,000 Crores currently
and is expected to touch Rs 30,000 Crores by year 2020. The market share of OEM service
players is 46% of the industry. Unorganized independent garages have 53% share and multi-
brand organized workshops have 1% market share. The multi-brand service players are
expected to grow up to 8 % market share by the year 2020. With over 230 million motor
vehicles in India, multi-brand auto servicing business has a promising future indeed.
Major Competitors:
My TVS5is a part of TASPL founded in 2011 having 100 plus outlets in India with partners
like Bosch, Warranty Inc., Myers and TVS AA. My TVS has its own brand car accessories.
1
Yogesh, Ex Head –Business Operations- West Zone- MFCS, was instrumental in building franchisee network
and training across the network
2
In this business, cars of all the brands are serviced at one service centre of the service company.
3
MFCSL distribution network for selling MFC spare parts in open market
4
http://www.business-standard.com/article/companies/multi-brand-car-servicing-to-grow-
116012100723_1.html accessed on 15.03.2018
5
www.mytvs.in
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.
Bosch Car Care services6 has over 500 Bosch Car centres,250 Express car care centres along
with 150 Express bike service centres in India.
Carz7 , founded in 2008 has over 10 car service centres in southern India.
6
https://in.bosch-
automotive.com/en_GB/repairs_and_services/bosch_car_service/bosch_car_service_1accessed on 15-12-
2018
7
www.carz.in
8
http://www.mahindra.com/news-room/press-release/mahindra-first-choice-services-crosses-the-1-million-
car-services-mark accessed on 15.03.2018
9
COCO- (Company Owned Company Operated), is a type of retail store format
10
Indian Automotive Aftermarket ACMA report (2016-17)
11
https://www.mahindra.com/news-room/press-release/mahindra-first-choice-services-forays-into-branded-
generic-2-wheeler-spare-parts accessed on 04.02.2019
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.
Strong Market Presence: By Dec. 2018, MFCSL had crossed 350 plus strong store network
across 22 states with a milestone of having served over 1.3 million cars. In a strategic move,
MFCSL acquired its multi-brand car service rival, Carnation (Venture of Ex Maruti Suzuki
MD- Mr.JagdishKhattar) further enhancing its strength in the industry, with an increased
network of 50 workshops.
Services Products
Multibrand four
MFC brand car
wheeler services
spare parts
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.
Exhibit 2-MFCSL competitive advantage:
Source: MFCSL
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.
Exhibit 3 Mahindra First Choice Spare Part Range
Wiper Blade Oil Filter
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.
Exhibit 4 After sales automotive spare part competitors
Spare Part Segment Growth Rate Competitors
Oil Filter 10% MAHLE, Fleet Guard, Filter On
Air Filter 10% Lucas TVS, Filter On
Fuel Filter 10% MAHLE, Fleet Guard
Wiper blade 7.2 % Robert Bosch, Camoflex
Suspension & Steering Product 11.5% Kalyani Forge, T.G.Q.
Bush & Engine Mounting 11.5% Hyco, Ace International
Brake Pad 11 % Fricmart, Ranbro
Relay 6% Leon Relays, OEN relays
Coolant 6.9% Fuchs, Chemtex
Lubricant 4.64% Castrol, Shell, Fuchs
Source: Developed by Author based on various automobile industry resources
Source: MFCSL
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.
Exhibit 7 Automotive after-market facts:
Source:http://www.business-standard.com/article/companies/multi-brand-car-servicing-to-
grow-116012100723_1.html accessed on 15.03.2018
Source: MFCSL
This case is written by Prof. Dipanjay Bhalerao, Indira Institute of Management, Pune.