Popular Vehicles & Services Limited has announced plans to establish a new NEXA workshop in Perumbavoor, Kerala, further expanding its service network and strengthening its partnership with Maruti Suzuki.

Investment and Facility Details

The company has received a Letter of Intent (LOI) for the new workshop, which will be equipped with state-of-the-art facilities:

The new workshop is designed to work in synergy with the existing NEXA Studio in Perumbavoor, aiming to provide a seamless and high-quality service experience for customers.

Strategic Expansion

Mr. Naveen Philip, Promoter and MD of Popular Vehicles & Services Limited, commented on the development: "We are delighted to further expand our NEXA network with this upcoming workshop, underscoring our enduring partnership with Maruti Suzuki. This initiative aligns with our focus on continuously elevating our service standards and reinforcing our leadership in the Maruti service ecosystem."

The expansion is part of the company's broader strategy to:

1. Increase the share of service revenues
2. Improve overall profitability
3. Strengthen its position as a leading Maruti service partner across India

Company Overview

Popular Vehicles & Services Limited, part of the diversified Kuttukaran Group, has been operating multi-brand automobile dealerships for 70 years. The company has a significant presence across the automotive retail value chain, including:

• Sale of new passenger, commercial, and electric two/three-wheeler vehicles
• Services and repairs
• Spare parts distribution
• Sale of pre-owned passenger vehicles
• Facilitation of third-party financial and insurance products

With operations in Kerala, Tamil Nadu, Karnataka, and recently expanded into Maharashtra, the company boasts an extensive network of 64 showrooms, 137 sales outlets and booking offices, 32 pre-owned vehicle showrooms, 154 authorized service centers, 48 retail outlets, and 24 warehouses across 46 districts in these states.

This expansion move by Popular Vehicles & Services Limited demonstrates the company's commitment to enhancing its service capabilities and strengthening its market position in the automotive dealership sector.

Popular Vehicles & Services Limited, a prominent player in the automotive retail sector, has recently provided a corporate guarantee of Rs 2.36 crore to South Indian Bank Limited. This guarantee is in support of a term loan sanctioned to its wholly owned subsidiary, Kuttukaran Cars Private Limited.

Key Details of the Corporate Guarantee

Transaction Insights

The company has emphasized that this transaction was conducted on an arm's length basis, ensuring fairness and transparency. Popular Vehicles & Services Limited has also clarified that no promoters, promoter group members, or directors have any interest in this transaction, underlining the company's commitment to corporate governance.

Financial Implications

According to the company's statement, the provision of this corporate guarantee is not expected to have any significant impact on Popular Vehicles & Services Limited, apart from the necessary disclosure requirements in its financial statements. This suggests that the company views this guarantee as a routine financial transaction in support of its subsidiary's operations.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Popular Vehicles & Services Limited has duly informed the stock exchanges about this corporate guarantee. This timely disclosure aligns with the company's obligations as a listed entity and demonstrates its commitment to keeping shareholders and the market informed about material financial decisions.

The provision of this corporate guarantee highlights the ongoing financial support that Popular Vehicles & Services Limited extends to its subsidiaries, potentially indicating a strategic move to strengthen the group's overall financial position and operational capabilities in the competitive automotive retail sector.