Company Overview
The company is an Indian family-owned and managed car dealership founded in 1996 with over two decades of experience and 32 outlets spread across the Delhi-NCR region for the sale of new and used cars, after-sales services, maintenance, and accessories. It also provides car financing and vehicle insurance services as separate business verticals.
- The company is extremely well-known, with a customer base of 500k+, a large used-car inventory, a strong position in the market, and selling over 1200 cars each month along with servicing over 26,000.
- At present, the group owns dealerships for Hyundai (Hans), Toyota (Galaxy), and Ford (Harpreet), with plans to expand and form tie-ups with OEMs.
- It plans to grow its used-car business due to the new trend of consumers preferring used and smaller cars post-pandemic in an attempt to cut down on discretionary spending, with BS-6 vehicles expected to increase costs.
- The Toyota-Maruti partnership provides a new avenue to explore in the small-car segment and exploit the price-sensitive nature of consumers to help capture the market.
- As of FY19, the group had an EDITDA of USD 10.66 million and borrowing of USD 42 million.
- The group interest coverage, debt to equity, and current ratios are 1.63, 2.11 and 1.23 respectively.
- Current credit rating by Brickwork Ratings (BWR) is BBB which suggests that it possesses a moderate degree of safety regarding timely servicing of financial obligations, and carries moderate risk.
Product or Technology Overview
The following information about the three dealerships is available:
Galaxy Toyota
- Showrooms and workshops: 12
- Total area (sq. ft.): 238,978
- Employees: 927
Harpreet Ford
- Showrooms and workshops: 10
- Total area (sq. ft.): 178,850
- Employees: 542
Hans Hyundai
- Showrooms and workshops: 5
- Total area (sq. ft.): 84,403
- Employees: 354
What the Company is looking for?
Target Country:
Opportunity:
The business is looking to raise funds in exchange for the divestment of a minority stake to the right strategic partner/fund. The funds will be utilised for:
- Collaborating with OEMs and venturing into the EV space
- Restructuring debt (currently USD 40-45 million) to reduce interest expenses and increase profitability
- Expanding the business by opening new showrooms and scaling the used car segment
SHOW INTEREST
