Japan’s Sumitomo Group has acquired the car lease division of Carzonrent India Pvt. Ltd. Carzonrent group also owns Easycabs and MYLES, which are not part of the transaction.
Financial details of the deal were not revealed. The main (original) company will continue to use the Carzonrent brand.
In a statement, Carzonrent said it “has realized the value of its operating lease business in a deal with Sumitomo Group Japan.”
“Under the deal, Sumitomo Group have set up SMAS Auto Leasing India which will gain rights to car lease division of Carzonrent with a fleet of about 2000 cars and about 135 marquee corporate clients spread across India giving it strategic strengths to build this high potential business in India.”
Carzonrent, with a market share of approximately 18 % in the organized car rental sector in India, will now be aggressively focusing on further expanding its leadership position in the market, the company said.
Carzonrent now plans to invest approximately Rs. 2000 crore (Rs 20 bln) in the next 3-4 years to grow its network from 39 to 100 cities within India, increase the current fleet size of 7,500 cars to 30,000 cars in the car with driver and self-drive services and also foray into markets outside India, it said in a statement.
“Post our agreement with Sumitomo Corporation, our strategic focus will be on expanding our cabs business under “Easy Cabs” brand and self-drive business under the” MYLES” brand,” said Mr. Rajiv Vij, Managing Director, Carzonrent.
“It’s a win-win situation for both the companies, the employees, all stakeholders and the consumers. Sumitomo Corporation’s diversified business pedigree and its affiliated funds have made significant investments in growing companies for more than a decade. Their investment reflects Carzonrent’s leadership position in the car lease business in India.”
A pioneer in shaping the personal ground transportation industry in India, Carzonrent with its fleet size of 7500 cars with comprehensive range– from Maruti Dzire to Toyota Fortuner, Camry and Mercedes offers a complete bouquet of travelling solutions to its customers.
The company had recently introduced MYLES, a self-drive service, offering consumers, freedom to drive combined with world class service and smart pricing. Carzonrent recently had also ordered the single largest luxury car order from Mercedes Benz India and would be investing Rs. 100 crores in the year 2014-15 to further strengthen its luxury car fleet.