Why 5K Car Care Business Shines Bright

Preeti Shishodiya
Preeti Shishodiya Jan 13 2021 - 5 min read
Why 5K Car Care Business Shines Bright
5K Car Care is now looking for investors to expand over 150 branches in four states in India, including Tamil Nadu, Karnataka, Kerala and Andhra Pradesh.

The car care business has seen good growth in the last few months. With people shifting from public to personal vehicles, the number of cars used has increased and therefore the requirement of car services.

5K Car Care Pvt Ltd is one of the leading car care companies that serve its customers with what is needed according to the trend in the market. The company was started in Coimbatore in 2012 and opened up to franchising in the year 2018. It has about 50 operational outlets and had 178 bookings in the year 2020 in Karnataka and Tamil Nadu.

The vision of 5K Car Care is to ensure that two out of three cars should be serviced at its outlet.

Why Invest in 5K Car Care?

5K Car Care is a 9-year-old organization with good experience in the field.  With 12,00,000 happy customers and 700+ employees, it aims at future development.

5K Car Care is providing trained manpower and separate technical training by an experienced team. It is going to take care of all the marketing requirements of the franchises. There are training and development for both the company-operated and franchised-owned units.

In the case of FOFO franchises, the brand takes care of regional marketing, and local marketing is done by the franchisee. The content and idea for local marketing can be given by the brand.

There are frequent sales competition held by the company between franchisees for them to learn new ways and things.

The materials will be provided to the franchises from a separate hub. The company has a logistics partner in place with a proper app where the franchisee needs to feed the requirements. The material will then be dispatched to him. About 80% of the products are manufactured by the company and the rest is outsourced.

Lastly, the company has a transparent relationship with its partners. It is of the thought that there is learning at both ends and the franchisees do not need dictatorship. They learn with experience and follow the company. The most important factor is that the aim of the partners should be the same.

Innovation during COVID Times

In the current pandemic scenario, the company has also evolved to match customer needs. The need is for hygiene and sterilization of cars. The company developed discharge technology where the sterilization of the car is done and a COVID-free car is presented. It has earned huge revenue.

This ozone therapy is government certified. And because of this, the cab services like Ola and Uber are also coming to 5K Car Care. It has a strong R&D department that improves with the current trends.

The automobile industry will be the next greatest industry and 5K Car Care is keeping up to date with its future projects also.

Franchise Requirements

5K Car Care is looking for investors who can franchise either with the FOCO model or FOFO model.

The company is operating in 4 franchise models, including Individual Store, Mall Outlet, Fuel Station, and Apartment Model. Requirements for them differ according to the kind of model.

The basic need would be:

1. Land:  800 to 4000 sq ft of land is required to set up the 5K Car Care unit. The company has tied-up with banks and would help investors wherever needed. The area needed for malls and apartments would be lesser since they have the parking facility and do not need one for the unit whereas, the individual unit would need a larger area where it can have an admin room or child play area. The company also helps the franchisee in the selection of location. It has a separate team to handle the real estate and has linked to magic bricks that help in negotiations, rents, and more.

2. Water and sewage facilities: Proper water and sewage facilities should be available for car care. In cities like Mumbai and Bangalore where there can be a water shortage, it is also giving a waterless washing service.

3. Investment: An investment of Rs 5-50 lakhs is needed depending on the type of model. Equipment will cost about Rs 15 lakhs, a brand fee for FOFO models will be Rs 5-8 lakhs and the balance amount will be the cost of setting up advances and interiors. In the case of the mall unit, it will be about Rs 30-40 lakhs; an apartment unit will cost around Rs 20-25 lakhs, and for the individual store, it will come up to Rs 40-50 lakhs.

Profit and ROI

To achieve profits, a particular franchise will need to get 5 cars per day. One of these five cars would get AMC done, three others would get additional services from the plethora of the services provided by the company. The company expects Rs 15,000 per day which leads to a turnover of Rs 4.5 lakhs per month. The expenses come around Rs 2 lakhs.

For the FOCO model, the profits would be 15 to 20 % on turnover but not on profits. For the FOFO model, there is only a monthly royalty fee of Rs 10,000-20,000, depending on the city.

Future Plans

5K Car Care is now looking for investors to expand over 150 branches in four states in India, including Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh.  The company also aims at expanding internationally and is already in talks with countries like Qatar, France, and Sri Lanka.

By 2021, the brand is planning to set up electrical charging point units at its outlets that will charge the vehicles in 5 minutes. 5K Car Care will mark a presence in the stock exchange by 2022.

One should not miss a brand that is well prepared for future development keeping in mind the future trends.


Edited By: Vaishnavi Gupta

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