### **Company Overview** Popular Vehicles & Services Limited (PVSL), part of the 80+ year-old Kuttukaran Group, is one of India’s leading integrated automotive retail players. Established in 1983 and headquartered in Kochi, Kerala, the company commenced operations as one of the first Maruti Suzuki dealers in the country in 1984. Today, PVSL operates a diversified, multi-brand dealership network spanning passenger vehicles (PV), commercial vehicles (CV), electric vehicles (EV), and pre-owned vehicles across **Kerala, Tamil Nadu, Karnataka, Maharashtra, and soon Punjab and Telangana**. Listed on the NSE and BSE since March 2024, PVSL leverages over 75 years of collective industry experience to deliver end-to-end vehicle ownership solutions under an integrated business model. --- ### **Business Model & Value Chain Integration** PVSL follows a **fully integrated, high-margin business model** that spans the entire post-manufacturing automotive value chain: 1. **New & Pre-Owned Vehicle Sales** - Sales through brand-specific outlets (Maruti Arena/Nexa, JLR, Tata, Bharat Benz) and multi-brand pre-owned vehicle retail via **Kartrenz** and **Kuttukaran Green**. 2. **Services & Repairs** - Includes warranty and out-of-warranty repairs, periodic maintenance, AC/electrical, collision repairs, detailing, and tire/battery services. - **Service-to-sales ratio of 26:1** in FY24 (industry average: 11–12), reflecting deep customer retention and aftermarket engagement. 3. **Spare Parts Distribution** - Operated by **Popular Auto Dealers Ltd (PADL)** with 50+ retail outlets and 25 warehouses, serving ~3,200 B2B customers including workshops and dealers. 4. **Third-Party Financial & Insurance Products** - Major revenue contributor (73% of FY25 revenue = ₹67 crores) via low-overhead cross-selling. 5. **Driving Schools** - Operates 10 driving schools in Kerala and Telangana, with the first established in 2006. This integrated approach ensures **recurrent revenue streams, enhanced customer loyalty, and margin resilience**, reducing dependence on volatile new vehicle sales. --- ### **Key Operational Highlights (As of Nov 2025)** #### **Network & Scale** - **450+ customer touchpoints** across 6 Indian states. - **159 service centers** (90 for Maruti Suzuki, 28 each for Tata CV & Bharat Benz, 10 for Ather). - **56 brand-specific showrooms** (Maruti Suzuki, JLR, Tata, Bharat Benz, Ather). - **33 showroom/sales outlets** including: - 31 Maruti Suzuki (Arena/Nexa) - 2 Kartrenz pre-owned multi-brand outlets - **75 spare parts touchpoints**: 50 retail outlets and 25 warehouses - **Employing over 10,500 people** #### **OEM Partnerships & Brand Ranking** PVSL holds long-term, high-performing relationships with marquee OEMs: - **Maruti Suzuki (41 years)**: Rank #9 in sales, **#1 in service** with 241 touchpoints. - **Tata Motors (27 years)**: Rank #4 in CV sales, #1 in service. - **Bharat Benz (28 years)**: Rank #2 in sales, #1 in service (Tamil Nadu/Maharashtra). - **JLR (15 years)**: Rank #2 in sales with 5 touchpoints. - **Ather Energy (3 years)**: Rank #5 in 2W EV sales, 22 touchpoints. The company also previously partnered with Piaggio (3W EV) and Honda (exit in progress) and operates under dedicated sub-brands: - *Marqland* (JLR), *Vision* (Honda), *Prabal Trucking* (Bharat Benz), *ECOMARQ* (EVs) --- ### **Strategic Developments (2024–2025)** #### **Geographic Expansion** - **Karnataka Entry (May 2025)**: Launched a ₹9 crore Maruti Suzuki 3S (sales, service, spare parts) facility in **Avalahalli, Bangalore**. - **Telangana Entry (Aug 2025)**: Acquired 19 Maruti Suzuki outlets (27 touchpoints) in a co-branded 36-month agreement, covering Arena, Nexa, True Value, and driving schools. - **Maharashtra Expansion**: - Multiple Bharat Benz 3S facilities. - JLR 3S facility in Nagpur (H2 FY26). - **Punjab Expansion (Jun 2025)**: Signed LOIs for 8 exclusive Bharat Benz 3S centers across Punjab – entry into Northern India. - **Target**: Reduce Kerala’s revenue contribution to **<50% by FY26**. #### **Electric Mobility & Premiumization** - **Ather EV Network Expansion**: - New 3S facilities in **Tamil Nadu, Maharashtra (Chandrapur, Nagpur, Chhatrapati Sambhaji Nagar), Kerala (Thiruvananthapuram – India’s 1st Gold Category Ather Service Center), and 2 in Bangalore.** - Ather now contributes to 22 touchpoints nationwide. - **Piaggio 3W EV Divestment (Feb 2025)**: Exited business due to low EV adoption vs CNG; resources redirected to core growth areas. - **Luxury Vehicle Push**: - LOI secured for **JLR 3S in Nagpur** via subsidiary Popular Autoworks Pvt Ltd. - Evaluating addition of a **new luxury brand** with proposed step-down subsidiary. --- ### **Digital Transformation & New Ventures** #### **ZPAREX Digisolutions Pvt Ltd (Nov 2025)** - **E-commerce platform** for spare parts & accessories launched under wholly-owned **Popular Mega Motors (India) Pvt Ltd**. - Targets high-margin digital sales from Maruti Suzuki, Tata, Bharat Benz, and Ather. - Aims to create **stable, recurring revenue**, less cyclic than vehicle sales. - Will scale across OEMs to serve retail and institutional customers. #### **Technology & Operations** - Fully integrated cloud-based ERP, CRM, HRMS, and BI systems. - Proprietary customer app and 10+ digital platforms. - 100% online booking for 60+ bodyshops. - ~340 digital campaigns annually; omnichannel customer engagement via social media, video conferencing, and lead generation. --- ### **Financial & Strategic Performance** #### **Revenue Streams (FY25 Highlights)** - **Third-party finance & insurance**: ₹67 crores (**73% of total revenue**) - **Spare parts**: ₹264 crore (5% turnover, 8% EBITDA), stable margins - **Passenger vehicle sales**: ₹3,314 crore from 30,116 units (up from ₹2,070 crore in FY21) - **Service & Repairs**: High-margin, volume-driven; contributes >50% of EBITDA despite ~15% revenue share #### **Profitability & Operational Efficiency** - **Service-to-sales ratio**: 26:1 (significantly above industry average) - **EBITDA margin**: Improved to **19% in FY24** (from 12–13% earlier) - **1 million+ service transactions completed in FY24** --- ### **Restructuring & Capital Allocation** - **Exited underperforming businesses**: - Piaggio 3W EV (divested in Feb 2025) - Honda passenger vehicles (17-year partnership, being divested; Roy Thomas evaluating acquisition) - **Capital reallocated to**: - Premium/luxury vehicles (Nexa, JLR) - EV expansion (Ather) - Geographic diversification (Telangana, Punjab, Karnataka) --- ### **Corporate Structure** - **Holding Structure**: PVSL owns **100% of 8 subsidiaries** including: - Popular Mega Motors (India) Pvt Ltd - Kuttukaran Cars Pvt Ltd - Popular Auto Works Pvt Ltd - Kuttukaran Green Pvt Ltd (formerly Pre-Owned Cars) - Ensures **unified control, strategic synergy, and focused execution** by brand/segment. - Subsidiaries are regionally and functionally aligned for regulatory compliance and agility.