The ₹3,127-crore Landmark Vehicles, the one listed automobile dealership chain in India, is trying to broaden its enterprise by means of acquisitions and by leveraging new partnerships with corporations resembling MG Motor India and Mahindra & Mahindra (M&M).
The acquisition route will not be new for Landmark. 1 / 4 of its 117 retailers consists of dealerships it has purchased out from earlier house owners. “There are lots of family-run dealership teams in India which have succession points, monetary stress, or they might wish to migrate to a different enterprise,” Sanjay Thakker, promoter & chairman, Landmark Group, stated. “We’re ready to pay them a good market worth.”
Other than acquisitions, Landmark is hopeful of upper enterprise from its seller retailers for MG Motor and M&M, which function within the excessive average-selling-price passenger car market.
In keeping with a Crisil report, automotive sellers will see their revenues speed up 8-10% this fiscal, pushed by 5-7% improve in gross sales volumes, premiumization and worth hikes of 2-5% by authentic gear producers (OEMs).
Landmark additionally expects extra automotive dealership teams in India to consolidate and a few to ultimately checklist on inventory exchanges. “I’m positive there shall be many, many teams that can consolidate and look to checklist,” stated Thakker.
“The consolidation of seller networks is anticipated within the coming years as carmakers have began preferring working with restricted sellers. This method additionally reinforces belief and model fairness amongst automobile patrons,” Gaurav Vangaal, affiliate director, S&P World Mobility stated.
Landmark listed its enterprise on the Indian bourses final December, when its concern of ₹552 crore was subscribed over thrice. Since itemizing, the inventory has risen about 65%, closing at ₹755.4 on the BSE on Thursday.
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Up to date: 24 Nov 2023, 12:02 AM IST
Supply: Live Mint