Auto parts distributor targets Rs 1,400 crore revenue in four years. Plans include market expansion, new partnerships, and openness to strategic investments.
03 Aug 2024 | 5277 Views | By T E Narasimhan
Chennai-based Popular Group, a leading automotive parts distributor, plans to double its revenue from Rs 700 crore to Rs 1,400 crore over the next four years. This ambitious goal will be supported by the company's expansion beyond Tamil Nadu into new markets and segments.
The Group, open to strategic ...
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Chennai-based Popular Group, a leading automotive parts distributor, plans to double its revenue from Rs 700 crore to Rs 1,400 crore over the next four years. This ambitious goal will be supported by the company's expansion beyond Tamil Nadu into new markets and segments.
The Group, open to strategic or private equity investments to fuel its growth, was founded in 1978 by Deepak Singh Kohli. It has since become a frontrunner in automotive parts distribution, supporting a network of over 4,200 retailers for two-wheelers, three-wheelers, and passenger vehicles.
With a strong distribution network and more than 400 employees, Popular Group serves a wide and diverse clientele, according to Deepak. He notes that while the company has primarily focused on Tamil Nadu until now, it plans to expand into other southern states over the next four years.
The company has already taken its first step into Andhra Pradesh, recently opening a distribution network in Nellore for TVS brand's two-wheeler parts and Bajaj three-wheeler parts. "Our market and segment expansion will help us achieve our vision to double revenue in the next four years," Deepak stated. The company has also recently ventured into car parts distribution for Toyota.
Popular Group has formed strategic partnerships with leading Original Equipment Manufacturers (OEMs) and is a partner of major brands including Honda, TVS, Royal Enfield, Yamaha, Toyota, Piaggio, and Bajaj. It also distributes for other prominent brands such as Shell, Motul, CEAT, Rolon, Suprajit, and FIEM.
With an average year-on-year growth of 25%, the company continues to strengthen its market presence in the competitive automotive parts distribution industry. Deepak emphasised the company's openness to strategic and private equity investors to support its capital-intensive business expansion.
He highlighted the company's key differentiator: its extensive infrastructure. Spread across nearly 2,00,000 square feet in Chennai, Madurai, Salem, and Nellore, the company stocks close to 50,000 line items. This presence ensures streamlined operations, effective distribution, and timely deliveries across all channels. Popular Group is also embracing digital transformation, implementing systems for seamless communication and transactions with clients and creating a paperless warehouse. This initiative underscores the company's commitment to sustainability and modernisation.
Looking ahead, Popular Group is exploring potential partnerships with other major automotive brands and considering collaborations with leading electric vehicle manufacturers for the distribution of spares and batteries. These strategic moves are part of the company's comprehensive growth strategy for the future.
This feature was first published in Autocar Professional's July 15, 2024 issue.