How a reluctant lawyer developed a roaring Dealer business in Alwar

A reluctant automotive dealer, Nikunj Sanghi the founder and managing director of JS Fourwheel Motors (P) Limited did not enter this business stream by choice. It was by pure accident that he is today among the Top 10 dealers of Mahindra & Mahindra with 5-3S showrooms and one 3S facility of Hero MotoCorp in Rajasthan.

The Rs 250 crore JS Fourwheel Motors is gunning for a topline of Rs 500 crore by 2020 when another 5-3S facilities would be added taking the total number of dealerships to 11. The original goal though was to achieve the Rs 500 crore revenue by 2016 but unfortunately could not be met.

Factors such as the diesel ban on over 10 year old diesel vehicles in the NCR as well as the eight month ban by the Supreme Court on registration of above 2000cc diesel vehicles in the National Capital Region in order to curb pollution affected sales and ate into the company’s revenues. Hence, profits dwindled by 40 percent and the turnover plummeted from Rs 350 crore over the last two years.

But now with the rollback of these Court directives, Sanghi is bullish of JS Fourwheel reaching its goals by 2020 as all the dealerships are currently doing roaring business.

Drawing on his Father’s goodwill
In 1977, Sanghi joined DCM as a management trainee. He completed his LLB from Delhi University and later the company secretary course while working with DCM for 7 years at Delhi.

His father was at the time working as a CEO of a Jaipur-based dealership of Mahindra & Mahindra and Tata Motors both located under a single roof. Being a diabetic, his father unfortunately lost his eyesight while at work.

Sanghi had to rush from Delhi to attend to him and was unable to rejoin his duties at DCM. His father in the meantime was sent to the US for treatment.
Therefore the dealer owners asked him to replace his father as CEO at the showroom.

“This was like a Hobson’s choice and I had no option but to say yes because I was the only son of my parents,” narrates Sanghi. This happened in 1982 and though his father returned after treatment in the US after a year but he had lost his eyesight for good.

Disappointed with the way his career was panning out as he did not like the style of functioning of the Jaipur dealership after having lived a corporate lifestyle, he put in his papers. He had spoken to DCM officials and they were more than willing to take him back at a much more senior position than earlier.

The Mahindra’s got wind of this development and company authorities called him over for an urgent discussion to Mumbai.

A mental tussle
At the back of his mind, Sanghi had the feeling felt that they would probably offer him a job in the company. But instead M&M asked him to take up a company dealership. Refusing outright Sanghi argued that he was not cut out for this job and neither did he have the finance required for this kind of venture.

But M&M was not ready to let him go and reiterated that this offer was not for him but because of their long association with his father who had been at the helm of their dealership for 35-40 years.