Mahindra First Choice Services (MFCS), a wholly-owned subsidiary of Mahindra and Mahindra, said on Monday it plans to take the numebr of its service outlets to 400 this financial year at an investment of about Rs 350 crore.
"In the begining of the year we had around 100 service outlets and by the end of the FY17, we target to have 400 outlets across the country including north-east. The market is worth Rs 20,000 crore," MFCS CEO YVS Vijaykumar told Press Trust of India here on Monday.
"The total investment would be Rs 300 crore for the outlets which will come from franchisees, while we would be spending Rs 40-50 crore in IT infrastructure and related expenditures during the year," he said.
The multi-brand car service company would ramp up the number of workshops to 500 by the end of FY18. As for its warehouses, it already has 25 of them and 18 more are being added up during the year, he said.
The company in recent times are opening service outlets in the eastern states and unveiled their first outlet in Kolkata on Monday.
Vijaykumar said majority of the new servcie stations are coming up at tier II and III cities due to multiple advantages.
"Our service cost is 15 to 40% lower than the single brand service stations which accounts for 50% of the passenger car service market," Vijaykumar claimed.