Shriram Automall India Ltd. (SAMIL), the largest asset financing NBFC in India, is sharpening its focus on the pre-owned bus segment in the country. The wholly-owned subsidiary of Shriram Transport Finance Company (STFC), which is a market leader in the organised pre-owned truck segment in India, SAMIL is now chalking out strategic plans to enhance its presence in the small, medium and large bus segments. The commercial vehicle segment is counted as the company’s main bet, accounting for a major share of its total business, while tractors, construction equipment, passenger cars and two-wheelers contribute to the remainder of its sales.
In a one-on-one interaction with MOTORINDIA, Mr. Sameer Malhotra, CEO, SAMIL, revealed: “Although we have been involved in the buying and selling of pre-owned buses for the last three years, we have zeroed in on this segment from this year only. Very recently, we created a separate vertical for buses and have appointed its National Head. From this year onwards, we have started separately focussing on buses. Until now, buses were a part and parcel of commercial vehicles. But now they are another emerging segment for us. There is a separate ballgame and strategies required for selling buses. This segment has different applications – usability, aspirations, buying patterns, tax implications, etc. So everything is different from a standard commercial vehicle. We now realise that the time has come to start focussing differently than a normal commercial vehicle.”
It is to be mentioned that SAMIL is an exclusive enterprise undertaken by the Shriram Group which aims to bring better transparency and value-added services in the commercial vehicles & equipment trading industry in India. This initiative was started in February 2011 to put an end to the unreliable and traditional practices prevalent in commercial vehicle transactions and organise vehicle-trading mechanism. SAMIL facilitates acquisition and disposal of pre-owned vehicles which are as new as unused and also those that are even over 20 years old. It has been associated with various brands of vehicles, and banks/NBFCs, including Tata Motors, Ashok Leyland, AMW, John Deere, SBI and General Motors, which builds up a huge customer base for its business.
Talking about its growth projections, Mr. Malhotra observed: “We are growing by 50 per cent on a YOY basis. During 2012-13, we did about Rs. 850 crores worth of transactions and during 2013-14 we did about Rs. 1,500 crores and this financial year we should be clocking a turnover over Rs. 2,000 crores. Likewise, the number of vehicles sold this year would be higher vis-à-vis last year. We expect to execute 100,000 transactions this year, up from 80,000 transactions last year.”
As regards its distribution count, SAMIL is looking to have a count of 100 automalls by 2016-17. Currently, it has a count of over 40 outlets which will be ramped up to 60 in an year’s time. Equipped with secured stockyards, these automalls are strategically located near highways or on the outskirts and are spread across one to 20 acres of land. We are opening outlets at Durgapur, Guwahati and Ramgarh and Thrissur in the near future. We have lined up some expansion plans in the West, North and South India. This financial year, we should be running 50 outlets, and by 2015-end it will cross the 60-mark. Eventually, we might get into the franchisee business by involving local partners. By 2016, we will have 100 outlets which will include franchised automalls too”, he added.
SAMIL is an ideal platform for trading of pre-owned commercial vehicles and construction and agricultural equipments in an organized and transparent manner. It is a one-stop destination that offers a complete range of fleet management services such as finance, insurance, documentation, valuation, parking facility, refurbishment and repairs. “Our long-term plans include foraying into the SAARC nations”, concluded Mr. Malhotra.