Carzonrent to invest Rs 1,400 cr on expansion by FY'17

The company will purchase about 23,000 new cars to add to its current fleet of about 7,000 cars

Car rental firm Carzonrent plans to invest up to Rs 1,400 crore in the next four years to expand its fleet and start operations in 65 new cities.

 

The Delhi-headquartered firm will purchase about 23,000 new cars to add to its current fleet of about 7,000 cars.

 

"We will invest up to Rs 1,400 crore to expand business and add 23,000 new cars by financial year 2017," Carzonrent (India) Managing Director Rajiv K Vij told PTI.

 

The company's current fleet has various types of vehicles, catering to the general public and 600 corporate entities, he said.

 

Asked how the company plans to fund the expansion, Vij said: "It will be through internal accruals and debt from banks."

 

About 75% to 80% of the funding will come from banks and the rest will be through internal accruals, he added.

 

The company will also scale up its presence to a total of 100 cities across India from 35 cities currently, Vij said.

 

"In the next phase, we also intend to expand our customer base and to enhance the online retail business," he added.

 

The company expects to increase its workforce from 600 employees at present to 800 in the next four years.

 

Organised car rental firms such as Carzonrent, Avis, Orix, Travel House and Meru Cabs constitute 15% of the total taxi market, Vij said.

 

Carzonrent operates in three verticals -- car rentals, operating lease and radio taxis.