M/s SHIVAM MOTORS PRIVATE LIMITED

Corporate

Shivam Motors Pvt. Ltd. in Bilaspur-chhattisgarh is one of the leading businesses in the Commercial Vehicle Dealers-Tata. Also known for Commercial Vehicle Dealers-Tata, Truck Dealers-Tata, Truck Repair & Services, Commercial Vehicle Dealers-Tata (Authorised), Commercial Vehicle Dealers, Mini Truck Repair & Services-Tata Ace, Truck Dealers, Truck Dealers-Tata (Authorised)

Established in the year 1983, Shivam Motors Pvt. Ltd. in Sirgitti, Bilaspur-chhattisgarh is a top player in the category Commercial Vehicle Dealers-Tata in the Bilaspur-chhattisgarh. Over the course of its journey, this business has established a firm foothold in it’s industry.

SMPL is the sole dealership of TML’s commercial vehicles and spare parts in ten districts of Chhattisgarh. In the districts under its territory, SMPL operates six 3S (Sales-Service-Spares) and eight 1S showrooms. In addition to sale of vehicles and spare parts, the company provides a broad portfolio of value added services including hire-purchase, insurance, registration, refinance, annual maintenance contracts and reconditioned engines. The company is also engaged in the manufacturing of tip trailers at its manufacturing facility in Bilaspur. SMPL, part of the JN Group, was incorporated in 1983 by Mr. Kailash Gupta as its Chairman and other close family members as the directors. The flagship company of the group is Commercial Automobiles Private Limited (rated [ICRA]BB-(Stable)/[ICRA]A4) which is a dealership of TML’s commercial vehicles and passenger vehicles in Madhya Pradesh. Another major group company of SMPL is Commercial Engineers and Body Building Company (rated [ICRA]D, suspended in June 2015) which is engaged in the manufacturing of bodies for commercial vehicles and components for railways wagons.

Despite the healthy revenue growth witnessed in FY2016, SMPL continues to have thin profit margins as inherent in the automotive dealership business. Additionally, the company’s capital structure remains leveraged with muted coverage indicators. The ratings also remain constrained by the company’s susceptibility to downturn in sales due to inherent cyclicality in the automobile industry. Going forward, a healthy demand outlook for M&HCVs in view of the ongoing coal mining activities in the region coupled with continued traction in the infrastructure sector is expected to support the revenue growth of the company. Additionally, the ability of the company to increase revenues from higher margin segments like service income and spare parts thereby improving its profitability and manage its working capital requirements will remain the key rating sensitivities.