Welcome Guest

Businessex.Com

Strict Standards: Only variables should be passed by reference in /home/franchis/public_html/entrepreneur/entrepreneur/templates/InterviewDetail_tpl.php on line 7
Home Interviews Start Up  Non Techpreneur  Looking for original luxury sedan parts? SparesHub.com ends your search

Looking for original luxury sedan parts? SparesHub.com ends your search

Currently, SparesHub.com has a team in Pune, Mumbai and Nagpur, which will soon expand to top 15 cities in India.

Tags: automobile spare parts, indian automobile industry, spareshub.com, Automotive Component Manufacturers Association, Tata Motors, eCommerce, Mercedes Benz, BMW, Audi

BY Aparajita Choudhury | March 11, 2015 | COMMENTS ( 0 ) |

Looking for original luxury sedan parts? SparesHub.com ends your search
Tapas Gupta Co-founder, SparesHub.com

The automobile spare parts replacement market in India is very large, complex and unorganised. The current size of the components business in the Indian auto replacement market is over Rs 30,000 crore, growing at 7 per cent to 9 per cent annually. The combined value is projected to rise to Rs 40,000 crore by 2015 and to Rs 60,000 crore by 2020.

Surprisingly, according to a study conducted by Automotive Component Manufacturers Association of India (ACMA), almost 36 per cent of the auto parts in the replacement market are fake, which is a matter of concern for the industry. Moreover, the unavailability of automobile spare parts acts as one of the biggest hurdles for car and garage owners across India.

Even tier-2 and tier-3 cities have premium luxury cars like Mercedes, BMW and Audi, but they do not have authorised service centres within a radius of 200 KM. Therefore, to address this geographical asymmetry, car enthusiasts Tapas Gupta (who has worked at Mercedes Benz), Arijit Chakraborty (who has earlier worked with Tata Motors) and Diptanu Bhadra (an ex employer of Honda Motors) conceptualised the idea of SparesHub.com in December 2013.

SparesHub.com is an automobile spare parts eCommerce startup launched in Pune, which is known as the country's major automobile manufacturing hub. The eCommerce portal provides spare parts from more than 50 reputed after market companies and offers about 15,000 plus part numbers through its website. Currently, SparesHub.com has a team in Pune, Mumbai and Nagpur, which will soon expand to cover top 15 cities in India as their supplier base expands across India.

"We received our first order on second day of our website launch for a petrol tank flap cover for a hatchback car, without any marketing. Ever since then we have been growing. We wanted to solve the problem of unavailability of spare parts in India using eCommerce," says Tapas Gupta, Co-founder, SparesHub.com.

During the initial days, the trio faced many challenges such as convincing, teaching and winning customers' trust that even car spare parts can be bought online, convincing sellers about the market potential and bringing them on marketplace.

Thrust for Entrepreneurship

When Gupta was a teenager, he used to read a lot about famous entrepreneurs like Dhirubhai Ambani, Bill Gates, Ratan Tata, Richard Branson etc. Their success stories inspired him to start his own startup. Hailing from a family business background, Gupta's family played a supportive role in helping him start his venture.

Gupta pooled all his savings from his previous job to start SparesHub.com. Currently, the venture is planning to raise angel funding, which would be used to explore new marketplace and build new technology solutions for the automobile service industry. Eventually, SparesHub.com also got selected into the acceleration programme of Delhi-based 91Springboard.

"The thrill of chasing ones dreams and the adventurous journey of a startup is very exciting. Thankfully, the startup support ecosystem in India is growing very fast and that helped us a lot. I regularly visit startup conferences and events, which inspires me to go on with my journey," shares Gupta.

Market Overview

Out of the total replacement auto parts market in India, about 26 per cent is passenger vehicle parts, 24 per cent is commercial vehicle parts, 48 per cent are two wheeler parts and 2 per cent is three wheeler parts.

"For passenger vehicles, we expect about 2 per cent of this market to shift from offline to online within the next three years. Thus, the online market size for car spare parts is about over Rs 150 crore. In developed markets like US, Europe and others about 5 per cent to 7 per cent of the retail market has already shifted online. This shift will happen in India as well," asserts Gupta.

One of the crucial challenges of this industry is counterfeit products. This is where, SparesHub's sourcing from authorised distributors and reputed suppliers come into play. "We are able to offer 100 per cent genuine spare parts to the customers. We have tie-ups with companies like Monroe (US-based brand for suspension parts) and Tata Auto Components to make their entire part range available on SparesHub.com. We have access to their dealer network and warehouses across India, so that the availability of spare parts is not a problem. Thus, by using eCommerce, a varied supplier base and automobile know-how, we are able to solve the problem of automobile spare parts across India," emphasises Gupta.

Addressing Local Consumers

The availability of spare parts is a big problem throughout India, except in the four metro cities. Therefore, SparesHub.com developed deep supplier relations across India, wherein they can source a very large variety of spare parts at best prices and pass on the price benefit to customers. As a part of its marketing strategy, the company recently launched a 'Freedom Sale' from 21st Jan to 31st Jan on its website offering discounts for automobile spare parts.

"Our USP is that we offer a large variety of spare parts online, we introduce ease and comfort of buying them online and we sell only genuine spare parts. Customer buy from us because many times they do not find the spare parts in their local market, and we bring ease and trust into the whole buying experince of the spare parts," tells a proud Gupta.

Managing Logistics

Running an efficient logistic chain is considered as one of the most crucial business aspect for eCommerce players and the logistics aggregators are playing a very supportive role to the entire eCommerce industry. SparesHub.com engages with multiple third party logistics providers for getting the products delivered to its customers' doorstep.

Gupta further mentions that some of its spare parts are very bulky like suspension systems and engine parts, which often poses a big challenge. To overcome such issues, the team is planning to come up with new solutions by working closely with logistics companies.

Government Initiatives

One of the government's key initiatives to boost the automobile spare parts in India is Automotive Mission Plan (AMP) 2006-2016. This initiative is likely to give a fillip to manufacturing of automobiles and their components in India. Gupta states that this initiative would increase the number of sellers on their website.

Moreover, the recent GST initiatives would substantially remove the hurdles in the interstate movement of goods and allow players like SparesHub.com to start a B2B (Business-to-Business) eCommerce portal in the spare parts category.

Revenue Generation

Being a eCommerce marketplace company, SparesHub.com has multiple sellers of automobiles spare parts on its website and offers all kind of eCommerce services to its  sellers like online store, payment services, shipping and handling of the orders, and marketing of their products.

When asked about the revenue model, Gupta explains, "We charge for payment processing to our sellers based on how much sales SparesHub is able to generate for them and this is how we generate revenues. Currently, we have more than 30 sellers offering about over 15,000 products on our platform. We did about 400 plus transactions last month, which is growing consistently."

SparesHub has experienced a significant growth since past six months, both in terms of number of customers as well as number of suppliers. The company aims to reach Rs 10 crore mark in revenue by December 2015 across all automobile categories.

Please add your comment

Rating  
Not readable? Change text.

Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Related Interviews

Lack of speed, execution is a sure shot killer for start-ups: Livspace's CEO Anuj Srivastava

Anuj Srivastava, CEO, Livspace

Bet it an entrepreneur, early-stage investor or a product manager, Anuj Srivastava does not have to do too many different things to play...

Flintobox: A box full of toys to set your kids' imagination soaring

Arunprasad Durairaj, Co- Founder and CEO, Flintobox

Today’s generation has no time to play. They are burden under the bulky textbooks from the beginning of their school life, leaving...

Edutor is more of a tech company than a content company: Co-founder Ramesh Karra

Ramesh Karra, Co-founder, Edutor Technologies

Edutor Technologies, a next gen EdTech solution, has introduced an Android-based solution on a platform called IGNITOR, which offers...

How Hippocampus is making pre-school education affordable for rural India

Umesh Malhotra, founder CEO, Hippocampus Learning Centres

During the 9 years’ stint at Infosys in US, Umesh Malhotra lived in the Bay Area of California with his wife and five year old son....

Hindustan Wellness: A comprehensive solution for all health and wellness needs

Siddharth Sangwan, Founder, Hindustan Wellness

The concept of a 360-degree preventive healthcare model as a viable business idea had been playing in Siddharth Sangwan’s mind for...

Looking for budget travel? YatraGenie serves as a one-stop-shop for travellers

Renil Komitla, founder, YatraGenie

Armed with an inherent knack for keen observation and market intelligence, Renil Komitla ventured into e-commerce via the launch of...

Govt policies for start-ups are stimulant for better growth: Yogesh Agarwal, Applane Solutions

Yogesh Agarwal, CEO, Applane Solutions

Applane Education is a Cloud ERP that helps educational institutions to automate their processes and thus, enables them to focus on...

How Smartican is changing the landscape of social media

Aastha Almast, Co-founder & CMO, Smartican (2nd from Left)

Founded in January 2013, Smartican is a youth oriented Digital Social Media, Game Development and Entertainment Company. Initially...

It's a space age! Startup Dhruva set to privatise India's satellite industry

Sanjay Nekkanti, CEO, Dhruva Space

‘Shoot for the moon. Even if you miss, you will land among the stars.’ – The popular phrase hold true for 25 year old...

QuizWorks' brand PlayDay using gamification to accelerate enterprise growth

Raj Dam, Founder, PlayDay

Do you think playing games at workplace is unproductive? Think again. Nowadays, more businesses are using gamification tools to train...

Agripreneurs in India need long term visibility of fund: Ashutosh K. Sinha, Villfarm

Ashutosh K. Sinha, Co-founder & Director, Villfarm

Agripreneurs in India have the limited ability to invest and scale up their business. Therefore, they need longer term visibility of fund...

Gigstart: Here is your online party organiser

Atit Jain, Co-founder, Gigstart

Gigstart is a marketplace which facilitates quick and transparent connect between entertainers and party planners. It is first of its...

Ecolibrium Energy thrives on more than 100% YoY growth

Chintan Soni, CEO, Ecolibrium Energy

India has perennially been a power starved country with still 400 million of citizens not having access to power. Constant black-outs and...

Why Shrenik Gandhi quit Future Group to start his own venture

Shrenik Gandhi, CEO, White Rivers Digital

White Rivers Digital is India’s one of leading ROI driven digital agency that provides holistic communication strategies to take...

Kapil Agarwal's bootstrapped start-up UrbanHomez looks to clock Rs 5 cr next year

Kapil Agarwal, Founder & CEO, UrbanHomez.com

UrbanHomez is one of India’s largest online portals for Home Renovation, Design and Décor. It makes hassle free connection...

How Rahul Agarwal plans to build Organic Harvest into a Rs 100 cr venture

Rahul Agarwal, CEO, Organic Harvest

The 31-year-old Rahul Agarwal was an integral part of the highflying world of finance until an entrepreneurial bug bit him. Who would...

If you can dream it, you can do it

Saurav Modi, Founder, Just Jute Products

Like many other aspiring students, Saurav Modi, soon after his post graduation from Christ College, Bangalore, chose to pursue his career...

From a Village School Boy to a Serial Entrepreneur

Krishna Srinivasan, Founder & Chairman, Quest Explore Discover (QED)

Being a son of a village school headmaster, Krishna Srinivasan completed his education from a government school in Trichy. He has...

Witnessing 50-60% growth YoY: Saraogi

Vinit Saraogi, Managing Director, TBD Tradelink

The will to run and grow their own business has taken Vinit (Left) and his brother Bipin Saraogi (Right) quite far. From supplying sweets...

A Taxi Network for All India

Anshuman Mihir, Founder & CEO, MyTaxiIndia

Having the largest taxi rental network across India and with presence in more than 100 cities and connectivity with 48...

Toying With Growth

Sharad Venkta, MD & CEO, Toonz Retail India

Sharad Venkta, MD & CEO, Toonz Retail India, shares the growth path, success through franchising model and more in a chat with...

Innovate and Execute to Survive

Rajendra Rao, Founder, U-Wah Solutions & Co-Founder Madea Creative House

In a tete-a-tete with SMEntrepreneur, Rajendra Rao, Founder, U-Wah Solutions and Co-Founder Madea Creative House, shares his story about...

"Current State of This Market is Extremely Promising"

Sanjeev Mahajan, CEO, Enhance Clinics

Tell us about Enhance. What types of services are provided by your clinic?  Enhance is India’s fastest growing chain of...

Including the Financially Excluded

Ashish Ahuja, Vice President, FINO PayTech Ltd

In an interview with SMEntrepreneur, Ashish Ahuja, Vice President, FINO PayTech Ltd, talks about branchless banking services reaching out...

Cashing in on Car-Sharing

Greg Moran, Co-Founder, Zoomcar.in

How this concept of car-sharing rental service came to your mind? We both were big believers in the car-sharing business model that...

Adding Value to Walls

Mihir Mody, Founder and CEO, Adwallz

Wall posts now have a new address. From the over used online space, the brick and mortar counterpart is now an interesting canvas for...

Changing Indian Trading

Rohit Gadia

Rohit Gadia, CEO and Managing Director, CapitalVia Global Research Limited, turned his passion for stock market into his profession. He...

Teaching for understanding

Divesh Bhatija

Imagine being taught by someone who does not have an opinion about how dumb or smart you are. Imagine understanding everything you learn...

Passion is the key to success

Kanwar Singh

What led to the inception of Synergy Motors? Synergy Motors is about providing premium car rental services for customers who want to...

An eye for research

Vishal Oberoi, CEO, Market Xcel

In a chat with us, Vishal Oberoi, CEO, Market Xcel, gives the lowdown on his company that is enagegd in Research so as to give best...

Entrepreneurial touch

Chetan Indap, CEO, Joule Consulting PVt Ltd

Guy Kawasaki, in his book, ‘Rules for Revolutionaries’, had stated that “People who are crazy enough to think that they...

Restaurant for classy marriages

Zuzer Lucknowala, MD, The Wedding Cafe & Lounge

Smitten by the idea of wedding theme based restaurants in the west while globe- trotting, Zuzer Lucknowala decided to introduce his...

Propelling SME Growth

Pooja Kumar, Founder, SME JoinUp

With a strong urge to build something of value for the SME sector, Pooja Kumar created SME JoinUp. We catch up with her to know about her...

Zooming success

Manoj Gursahani , MD< Manoj Gursahani Vamoose.in

The Vamoose.in website is based on an e-commerce platform developed by renowned European technology company 'EL Media Global'. It...

Business of Loyalty and Gift Cards

Nikhi Dhoka, Director, Unit Solutions

If you want a Loyalty Programme and Card System but do not know where to get the technology, Unit Solutions will show you the direction....

Gems of Jewellery Industry

Praveen Goel, CEO, Shree Raj Mahal Jewellers

Praveen Goel, who excelled in gold import and manufacture of loose diamonds, set up his first retail outlet in Karol bagh which in less...

The Forgotten Heros: Vimanika Edutainment Pvt. Ltd.

Karan Vir Arora, Vimanika Comics

Comics are everyone’s favourite but not many think of publishing them. Vimanika Edutainment Pvt Ltd brings out comics about the...

Connecting Farmers to Consumers

Rajiv Kumar Chugh, Founder, 4 Fresh Retail

4 Fresh brings best quality produce directly from the cultivators to the consumers. The company has tied up with around 5000 farmers all...

Transforming Data to Intelligence

Rajesh Varrier, Founder, Activecubes

Activecubes provides analytics services with associated technology solutions, empowering clients to make the best...

Creating Niche Knowledge Solutions

Sumeet Anand, Founder, Kreeo

While Google and Bing rule the world of ‘search’, Kreeo has a further more specialized offering for information...

Stay fit, the Life Mojo way

Namit Nangia, Founder, Life Mojo.

Namit Nangia who was able to reduce his weight successfully thought of sharing the idea with other people, officially. Hence, he came out...

De-Congestion Drive

Abhishek Rajan, Co- Founder, Easy2Commute.com

In their endeavor to de-congest Delhi roads and provide safe carpooling to Delhiites, Abhishek and Ambrish Co-founded Easy2Commute.com a...

Advertising through all possible avenues

Maninder Singh Sethi, Founder, Excelsior Public Relations

Maninder Singh Sethi, the Founder of Excelsior Public Relations always wanted to leverage various mediums to market and advertise a...

Minding others businesses

Hemang Arun Pandeet, MD & CEO of SiddhiVinayak Astrology Services Pvt. Ltd

Astrology as a concept has existed since time immemorial, but professionalism was never a part of it until Hemant Arun Pandeet arrived at...

The Hub of Masterminds

Mr. Sitashwa Srivastava, Co-founder, CreADivity

Jade Magnet (earlier known as CreADivity) is a crowd sourcing platform for creative services. First-of-its-kind in India, it is an...

Free Copies

Harsh Narang, Founder, PhokatCopy

What is the biggest woe of students? A small amount of pocket-money that gets exhausted getting photocopies! Solution? Harsh Narang,...

By Women, For Women

Revathi Roy, Founder, For-She Travels & Logistics

She started her company when she was in greatest pain, suffering from the bereavement of her husband. She was hardly left with any...

Helping relocate

Abhilash BP, CEO MM Group

Abhilash BP, CEO of MM Group, found a business idea from one of the most common problems that existed for a long time. The solution that...

Pioneering New Media

Aditya Basu, founder of Xtreme Television

Aditya Basu, founder of Xtreme Television, would not have succeeded in his venture had he not decided to stick to it come what may. Today...

Scrumptious Ice Creams

Vijay Arora, MD, Gelato Vinto

With a dream of serving Indian food buffs with mesmerising flavour of Italian desserts, Vijay Arora, Managing Director, Gelato Vinto in...

In good health

Sachin Malik, Founder, Diva Fitness

Understanding the different fitness requirements of women and providing them the right solutions of dealing with weight loss, Diva...

The childcare people

Bharat Kapoor, Director, Your Kids R Our Kids

You need not worry about your kids when you are away as Your Kids R Our Kids (YKROK) care centre provides your child the desired quality...

Connecting the Young

Samyak Chakrabarty, Managing Director, Electronic Youth Media

Samyak Chakrabarty might look like any other student when sitting in the mass media class of Jaihind College but his accomplishments...