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SAMIL plans to open more Automalls

Last Updated 26 November 2015, 18:21 IST

Shriram Automall India (SAMIL), the unique wholly-owned subsidiary of the Shriram Transport Finance Company, providing organised bidding platforms for the acquisition and disposal of pre-owned vehicles, plans to extend its business further in the country by opening more Automalls (physical vehicle sales and auction yards) over the next one year.

The company currently has 55 Automalls throughout India, and will take that number to 60 by this year-end. Over the next year, it plans to open 10 additional Automalls in places such as Cuddapah, Vijayapura, Ratnagiri, Nagpur, Indore, Dharwad, and Agra, among others.

“These (open air) facilities, which are built on an area of 3-17 acres along the highway, are established on the basis of long leases that last for a period of 9-12 years,” SAMIL Chief Executive Officer Sameer Malhotra told Deccan Herald, on the sidelines of EXCON 2015 on Thursday. He was at EXCON to hold business discussions with construction equipment manufacturers, who may push their old stock equipement for auction through SAMIL’s platform.

“We help manufacturers get a faster trade-in at our facility, and then ensure that liquidation happens soon after. After a project’s completion, most often, it’s seen that the equipment used is no longer needed, and owners would like to sell the same. Also, many finance companies that have a lot of repossessed stock are able to park it with us, and have it liquidated,” Malhotra said.

Multi-faceted mix

SAMIL’s business spread stretches over a vast inventory including pre-owned two-wheelers, cars, commercial vehicles, construction and industrial equipment, tractors, agricultural equipment, and three-wheelers, which are sold through the company’s platforms that include physical bidding, online bidding, one-stop kiosks and private treaties.

“We are a one-of-a-kind concept in the country whose business encompasses not only pre-owned cars, but also used construction equipment. We have a full-fledged technical team and also the means to refurbish the old vehicles, before we put them through the bidding process,” Malhotra said.

Th overall annual transactions for used vehicles and equipment in India is to the tune of Rs 1 lakh crore, 90 per cent of which happens through the unorganised route, due to which, Shriram Automall (being a major organised player) claims to offer its services in a transparent way.

Malhotra said that the company’s earnings are sought through fees charged from buyers (one per cent) and sellers (three per cent), on each transaction. The company conducts around 400 auctions a month, selling around 10,000 vehicles and equipment during the period. SAMIL clocked revenues of Rs 70.41 per cent in FY15.

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(Published 26 November 2015, 18:05 IST)

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