Carnauba Autospa expects revenue to hit RM10m by 2010 - New Straits Times 08.02.2007

By Zuraimi Abdullah

Carnauba Autospa Sdn Bhd, operator of a spa facility for vehicles, expects revenue to more than triple to RM10 million by 2010, helped by a new service for automotive logistic companies.

The expected revenue will also be driven by allowing third parties to run Carnauba Autospa car wash outlets under a franchise programme, managing director Kumar Prabakaran said.

Carnauba Autospa is expected to record its maiden profit next year since starting operations in April 2004, he added.

"We are beginning to recover our investment of about RM3 million in two outlets. Our current revenue have more than doubled than what we had made in the first year. We should be making about RM3 million in revenue in 2008 from RM2.4 million expected this year."

"This should increase to RM10 million in two years with the help of new businesses to automotive logistic service providers and car wash franchises," Kumar told Business Times in an interview.

Firm deals with the logistic service providers are expected in third quarter of 2007, he said.

"Carnauba Autospa is looking at providing minimum vehicle maintenance services such as dewaxing, washing, polishing and waxing for these companies' fleet of vehicles" Kumar said.

The company has identified a 2.835ha land in the Klang Valley to site the operation.

Carnauba Autospa is talking with several parties on its car wash franchises. About six to seven franchise outlets are expected to be set up in the Klang Valley from June.

"These car wash outlets should cost RM100,000 to RM200,000 each (to open), depending on the location. Each will have a waiting lounge with a Wifi connectivity," Kumar said.

Carnauba Autospa offers detailing and waxing services for vehicles and is the first of its kind in the country. It has two outlets, one each in Shah Alam and Kuala Lumpur. Its first, at the Temasya Industrial Estate in Shah Alam, was opened in March 2004.

Carnauba Autospa also distributes car-care products.