Sameer Malhotra, Director & CEO, Shriram Automall India Limited

IIFL | Mumbai | October 19, 2015 16:47 IST

"We are planning to inaugurate another 8 Automalls in different locations (like Nagpur, Aligarh & Madurai etc.) to have total 60 Automalls by the end of 2015-16."

Sameer Malhotra, Director & CEO, Shriram Automall India Limited graduated from Delhi University and completed postgraduate studies in financial management from the Sardar Patel College of Communication And Management. Shriram Automall India Limited (SAMIL), a unique initiative undertaken by Shriram Group, aims to bring greater transparency and value-added services in the Commercial Vehicles & Equipment trading industry in India. SAMIL is a wholly-owned subsidiary of Shriram Transport Finance Company Limited (STFC). This initiative was started in February 2011 to put an end to the unreliable and conservative practices prevalent in commercial vehicle transactions and to setup an organized vehicle-trading mechanism. 
Shriram Automall India Limited   is a wholly owned subsidiary of Shriram Transport Finance Company (STFC). It is India's first-ever service provider that offers various well organised and transparent bidding platforms, including physical, online, one stop classified and negotiated deals, for acquisition & disposal of pre-owned commercial vehicles, construction & industrial equipment, tractors & agricultural equipment, passenger vehicles, three wheelers and two wheelers.
Speaking with Yash Ved of IIFL, Sameer Malhotra, says "We are planning to inaugurate another 8 Automalls in different locations (like Nagpur, Aligarh & Madurai etc.) to have total 60 Automalls by the end of 2015-16."
Brief us about the number of Automalls you have and what are your expansion plans?
Shriram Automall India Limited (SAMIL) came into existence with an aim to remove every layer of opaque system dedicated to the used automobile industry. It began its voyage by inaugurating the first Automall in Chennai on February 26, 2011. To strengthen its footprints across the country, the company inaugurated 52nd Automall in Patancheru, Telangana in July this year.  The company conducts bidding events at over 150 bidding locations including all those Automalls across India. Acting as a symbol of trust, the company has secured lakhs of customers & helped them ride their dreams. We are planning to inaugurate another 8 Automalls in different locations (like Nagpur, Aligarh & Madurai etc.) to have total 60 Automalls by the end of 2015-16.
What growth are you seeing in the retail business?
Initially, the company was focusing on leading Banks & NBFCs, OEMs and dealers to source its exhaustive inventory. However, over a period of time, it has extended its business towards retail segment as well. Retail business has become very successful for the company. It recorded a mammoth 111% growth in 2014-15 when compared to 2013-14, which accounts transactions worth around Rs. 600 cr. 
What growth do you expect in FY16?
India's automotive industry is facing testing times, surrounded by uncertainty on when sustainable growth and profitability will return. With the overall slowdown, people are not very keen on investing in new vehicles, which is why there is growth happening in the used-vehicle industry. 
Over the last couple of years, Shriram Automall has grown by 20-30 percent year-on-year; we intend to continue with the same momentum in FY 2015-16 too, with major focus on used commercial vehicle sales, followed by the passenger car segment & construction equipment.
Brief us about your financials?
Shriram Automall made around 1 lakh transactions in FY 2014-15. Thus, the company made the transaction amount over Rs. 1,700 cr. This in turn generated a handsome amount of revenue of over Rs. 70 cr. for us. 
What is your market share?
Since its inception in 2011, Shriram Automall has been playing a pivotal role to organize the largely unorganized pre-owned vehicle & equipment industry. Shriram Automall is undisputed market leader in physical bidding platform. It holds around 85% market share for the same.  
Over the time, Shriram Automall has also witnessed tremendous growth in its online bidding platform. The company has gained over 20% market share in case of vehicle listing for online bidding in 2014-15 compared to 7% in FY 2013-14. In the same line, the company holds around 10% market share in used commercial vehicle space.
What is your revenue mix?
The commercial vehicle segment holds the largest share in the revenue generation. Last fiscal, we had over 50% of the total business coming from commercial vehicle segment. The second largest contributor is the passenger vehicle segment, which contributes around 18%, then comes construction equipment with over 10% contribution. Tractor & buses contribute around 5% business. Three-wheeler & two-wheeler are comparatively slow but we are sure they will definitely pick up in the near future.



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