About Company

• Polular Vehicles and Services Limited (“PVSL”) was incorporated on July 5, 1983. The Kuttukaran Group company, PVSL is a leading diversified automobile dealership in India in terms of revenue as of Fiscal 2023, having a fully integrated business model. PVSL caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of preowned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products.

• PVSL categorises their automobile dealership business into 3 key segments, namely, (a) Passenger Vehicles including luxury vehicles, (b) Commercial Vehicles and (c) Electric 2-wheeler and 3-wheeler Vehicles.

• PVSL operates passenger vehicle dealerships of Maruti Suzuki, Honda and JLR. The company operates commercial vehicle dealerships of Tata Motors (Commercial) and BharatBenz.

• The company entered the electric 2-wheeler and 3-wheeler vehicles segment in 2021 and they operate their electric 2-wheeler and 3-wheeler vehicle dealerships of Ather and Piaggio, respectively.

• Company’s services, repairs and maintenance under each of their dealerships include work undertaken during warranty period, outside warranty period paid by the customer, running repair and collision repair services.

• They also deal in the exchange, acquisition and sale of pre-owned passenger vehicles across their vehicle dealerships.

• As of December 31, 2023, PVSL operated through their network of 61 showrooms, 133 sales outlets and booking offices, 32 pre-owned vehicle showrooms and outlets, 139 authorised service centres, 43 retail outlets, and 24 warehouses located across 14 districts of Kerala, 8 districts in Karnataka, 12 districts in Tamil Nadu and 9 districts in Maharashtra.

• During the 6 months ended September 30, 2023, they sold an aggregate of 16,476 new passenger vehicles, 5,350 new commercial vehicles and 2,167 new electric 2-wheeler and 3-wheeler vehicles.

• The revenue from servicing of passenger vehicles and commercial vehicles has seen a significant increase, from ?365.16 crore and ?67.51 crore in Fiscal 2021 to ?571.61 crore and ?141.87 crore in Fiscal 2023, respectively.

• In Fiscal 2023, they were ranked ‘All India Highest in the Bodyshop Load’ for Maruti Suzuki. Further, the number of electric 2-wheeler and 3-wheeler vehicles sold by them has also increased from 252 in Fiscal 2022 to 3,381 in Fiscal 2023.

Strengths

Competitive Strength 

• Long standing presence in the automobile industry and well-established relationships with leading OEMs;
• Penetration in markets complemented by innovative marketing strategies;
• Fully integrated business model leading to business stability and higher margin;
• Proven ability to identify and capture inorganic as well as organic growth opportunities;
• Consistent track record of profitable financial performance and increasing growth;
• Experienced promoters and management team.

 Business Strategies 

• Sustained growth of the higher margin services and repair business, sale of pre-owned passenger vehicles and facilitation of sale of third-party financial products;
• Continue to increase sales at the existing dealerships;
• Expansion of the network and diversification of the product portfolio;
• Grow through strategic acquisitions;
• Invest in technology and increase the digital presence.

Company Promoters

Company Financials

Popular Vehicles & Services Limited's revenue increased by 40.42% and profit after tax (PAT) rose by 90.31% between the financial year ending with March 31, 2023 and March 31, 2022.

Objects of the Issue

1. passenger vehicles including luxury vehicles,
2. commercial vehicles and
3. electric two-wheeler and three-wheeler vehicles