MFC Ser­vices for­ays into two-wheeler spare parts busi­ness, plans ser­vice

Auto components India - - SPECIAL REPORT - Story by: Ramya Srini­vasan

Mahin­dra First Choice Ser­vices (MFC Ser­vices), In­dia’s multi-brand car ser­vice work­shops, has for­ayed into branded generic two-wheeler spare parts busi­ness. It will now ex­pand its ex­ist­ing port­fo­lio of four-wheeler spares to in­clude a com­pre­hen­sive list of fast­mov­ing two-wheeler parts like fil­ters, horns, oil and elec­tri­cal re­lays, among oth­ers, with its branded spare parts la­bel – MFC Spares. MFC Ser­vices also plan to be­gin ser­vice of two-wheel­ers shortly.

YVS Vi­jay Ku­mar, CEO, MFC Ser­vices told Au­toCom­po­nentsIn­dia, “The rea­son to en­ter the two-wheeler spare parts seg­ment is cus­tomer de­mand. To build trust, we pro­vide our cus­tomers branded generic spare parts of two-wheel­ers. Cur­rently we han­dle only four-wheeler spares, but we are for­ay­ing into the two-wheeler seg­ment. We will sup­ply all brands of spares but not of high-end mo­tor­cy­cles. We are cre­at­ing a strong base for the cus­tomers in this seg­ment be­fore leap­ing into two-wheeler ser­vice.”

With this new prod­uct-line, MFC Ser­vices plans to in­crease its foot­print to 200 dis­trib­u­tors by 2020. Com­ment­ing on the spare parts ware­houses, Ku­mar said, “We have 35 ware­houses and will pro­vide as­sis­tance to the cus­tomers in the twowheeler seg­ment with the same. We are fo­cused on max­imis­ing profit and out­put of all in the value chain, MFC Ser­vices op­er­ates on a unique sales and sup­ply chain model – M-PRO.”

The com­pany has 340 multi-brand car work­shops in more than 250 towns across 24 states. It has been of­fer­ing branded generic auto spares, sourced from qual­ity sup­pli­ers, at com­pet­i­tive rates, through its coun­try-wide net­work of 60 dis­trib­u­tors

in 25 states. It is cur­rently en­gaged with 3000 re­tail­ers and 8000 me­chan­ics across the coun­try, and plans to es­tab­lish a coun­try-wide net­work of over 1000 work­shops.

“MFC Spares was set up to ad­dress the chal­lenge of avail­abil­ity of high-qual­ity auto-spares at com­pet­i­tive prices and with faster de­liv­ery time­lines. These parts are very pop­u­lar in our 340-work­shop strong four-wheeler fran­chisee ser­vice net­work, as well as with our bazaar dis­tri­bu­tion chan­nel. Our foray into the two-wheeler spares seg­ment was a nat­u­ral pro­gres­sion, on the back of the suc­cess of the four-wheeler spares busi­ness over the last 3 years. This new foray marks yet an­other step that will take us closer to our vi­sion of cre­at­ing a trans­par­ent and trust-wor­thy eco-sys­tem for the ve­hi­cle af­ter­mar­ket in In­dia,” he added.

MFC Spares will of­fer spare parts of lead­ing two-wheeler brands like Yamaha, Hero, Honda, Ba­jaj, Suzuki, Royal En­field, TVS, among oth­ers. Spare parts will be avail­able for scoot­ers (non-geared) as well as geared two-wheel­ers.

“Cur­rently, we are look­ing at tier-2 and tier-3 re­gions where the re­quire­ments are more from the cus­tomers. We will pro­vide the parts taken from our near­est ware­houses with in 4 to 5 hours. We aim at cus­tomer sat­is­fac­tion and build their trust in Mahin­dra First Choice ser­vices. As pro­vid­ing dig­i­tal as­sis­tance to our cus­tomers in car seg­ment, we will also launch dig­i­tal ini­tia­tives for the two-wheeler ser­vice. The over­all mar­ket size of the af­ter­mar­ket spares busi­ness is Rs 50,000 crore of which four-wheel­ers com­prise 25%, three-wheel­ers 25% and the ma­jor­ity 50% comes from twowheel­ers,” he said. The com­pany fo­cuses on nat­u­ral de­mand gen­er­a­tion and pull rather than the push method, which is the tra­di­tional model. It en­sures very high RoI for its dis­trib­u­tors and re­tail­ers by keep­ing low in­ven­to­ries but in­creased avail­abil­ity so that the ma­te­rial turns around much faster. The MFC Spares brand stands for smart re­place­ment and is tar­geted at cus­tomers who want qual­ity and value for money spares for their cars. MFC Ser­vices en­tered the busi­ness of pri­vate la­bel spare parts for all brands of cars un­der the ‘MFC’ brand name.

MFC Ser­vices has also launched a unique dig­i­tal ini­tia­tive, Car­workz, an in­no­va­tive car ser­vic­ing work­shop ag­gre­ga­tor. Tar­geted at all car own­ers, this mo­bile and web­based plat­form, en­ables them to find the best and near­est work­shops for ser­vic­ing their car. They can get ser­vice es­ti­mates through the in­no­va­tive ser­vice es­ti­ma­tor.

MFC Ser­vices sup­ports its fran­chisees na­tion-wide with a ro­bust sup­ply chain for spare parts through its clus­ter ware­house net­work. Each clus­ter ware­house sup­plies parts as per the daily re­quire­ments of the fran­chisee­owned and op­er­ated work­shops, thus re­duc­ing the need to main­tain huge in­ven­to­ries.

Mahin­dra First Choice Spares has seen its busi­ness grow 100% year-on-year for 5 years in a row. It is mak­ing in­roads into the In­dian car ser­vice mar­ket, which has been shared by OEM deal­ers and in­de­pen­dent garages.

YVS Vi­jay Ku­mar, CEO, Mahin­dra First Choice Ser­vices

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