After having steered the growth of India's largest selling carmaker Maruti, its former managing director Jagdish Khattar is launching his own venture, a pan-India multi-brand auto sales and service network, Carnation Auto India Ltd,  which will later enter the multi-brand retail market for new and pre-owned vehicles.

These multi-brand sales and service hubs are mostly targetted at new automobile manufacturers, especially those with limited market share and capacity constraints.

Earlier, former Hyundai Motors India president BVR Subbu had announced setting up a joint venture with Japanese giant Gulliver International to provide after-sales service for luxury cars and heavy commercial vehicles, Altius Autoworld, and an automobile contract-manufacturing venture, Argentum Motors.

Among the investors in Khattar's venture is IT entrepreneur and of Wipro Technologies promoter Azim Premji's $1-billion private equity fund, PremjiInvest, which is acquiring a "significant minority stake" in Carnation Auto for Rs80 crore. IFCI Ventures has also committed Rs28 crore for a minority stake.

PremjiInvest had recently acquired a 10-per cent in low-cost retailer Subhiksha for around Rs230 crore.

Khattar, chairman and managing director of Carnation Auto, has planned an investment of Rs1,000 crore in the next five years to launch service and sales network hubs in 100 locations in 65 cities in the next five years.

According to reports Khattar and PremjiInvest hold between 25 per cent and 30 per cent in Carnation Auto, which has been valued at between Rs300 and Rs350 crore.

Khattar says By the end of this financial year, Carnation Auto will launch at least half-a-dozen auto solution hubs in the National Capital Region, Hyderabad and Cochin followed by 25 to 30 more hubs across India the next financial year.

Carnation said in its website new car sales are projected to be 3 million and the car park 19 million by 2015. To meet the needs of these customers, an incremental investment of Rs12,000 to Rs15,000 crore is required in the network in real estate, and a trained manpower pool for which Khattar has planned separate entities.

Between 60 per cent to 70 per cent of car owners go outside of the manufacturers' network after the warranty period. Carnation intends to provide an alternative to these customers as well as families owning multiple brands, fleet owners and corporates- all under one roof.

"Our auto solution hubs will provide everything a car owner would need to maximise his ownership experience," said Khattar. "The multi-brand concept will allow us to provide automobile manufacturers, especially new entrants and those with limited market share, small car park and capacity constraints, a more efficient route-to-market through faster nation wide retail presence, scale efficiencies and servicing support."

Khattar says initially the company will focus on providing service, mechanical repair and body shop solutions across its facilities. The service and parts markets is valued at just under Rs15,000 crores.

Carnation is tying up with leading value added product and service providers for tyres, batteries, car detailing, accessorising, CNG / LPG fitment and windshield replacement among other things. It will will subsequently also develop multi-brand facilities to retail new and pre-owned vehicles.

"Carnation is addressing several changing needs in the manufacturer- to-buyer relationship through a scalable business model," said Prakash Parthasarathy, chief investment officer, PremjiInvest.

"Mr. Khattar is a visionary who can rewrite the auto industry landscape again --- this time in the services chain. We are excited to support the accomplished management team under his leadership and look forward to working together in creating a world class organization." Mr. Prakash Parthasarathy and Mr. Syed Mustafa of PremjiInvest would join the Board of Directors of Carnation Auto.

Talking about the brand Khattar said that the company is named after one of the most popular flowers. "Carnation Auto wants to imbibe its qualities of being warm, friendly and inviting."

The identity too is built around the essence of the flower but turned around into a graphic rendition to give a vibrant and spirited feel to the brand. The logo contains different shades, which represent different promises to their customers. The representation of a "bouquet" represents a total and comprehensive set of services they plan on providing to their customers to give them a unique ownership experience.