Carnation, Variety Group enters JV

Hyderabad, Apr 9: Jagdish Khattar, the ex-MD of Maruti Suzuki owned Carnation and K Sathya Reddy's Variety Group entered into a joint venture agreement on Tuesday, Apr 7 to set up India"s first multi brand auto solutions hubs across Andhra Pradesh.

Carnation will have 4 hubs in Hyderabad itself. It has also signed JV agreements with other joint venture partners in UP, West Bengal, Karnataka and Maharashtra. Carnation will hold a majority stake of 51 per cent, meanwhile Variety Group will invest Rs 40 cr in the joint venture. Carnation which is planning to invest about Rs 1,000 cr in 4 years, is expecting to set up around 50 auto auto hubs by March 2010, across India.

“Each centre will be an automobile hub offering everything a car owner wants, from accessories and spares to insurance. We are also getting into the pre-owned car sales business. Eventually we will get into selling brand new cars as well," said Khattar on the occasion.

OneIndia News