Genpact to take over procurement at Indian auto firm Carnation

26 May 2010

26 May 2010 | Nick Martindale

Indian car sales and service firm Carnation Auto has outsourced its procurement and supply chain management function to Indian company Genpact as part of a five-year business process outsourcing deal.

Under the agreement Genpact will also manage other core processes for Carnation, including finance and accounting, customer relationship management and human resources.

Jagdish Khattar, chairman and managing director of Carnation, said the decision was prompted by a desire to gain from economies of scale and focus on the company’s core business of providing drivers in India with a one-stop shop for all their car requirements.

He said: “We are a dynamic, fast-growing company and it is critical for us to work with the best in the industry. We will leverage Genpact’s global expertise and enhanced process understanding to achieve scale in a cost-effective and efficient way.

“Through this relationship, Carnation will transfer non-core support function activities to Genpact so as to have 100 per cent focus on our core business of helping customers maximise their car ownership experience.”

Carnation was set up in July 2009 and offers sales and services for almost all brands of car, including mechanical and body repairs, insurance and accessories, in what is still a relatively new concept for the Indian market.

Monthly car sales in India hit 150,000 for the first time in February 2010, according to the Society of Indian Automobile Manufacturers. This was a 33 per cent year-on-year jump from 2009, suggesting the market is starting to recover.

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