Popular Vehicles and Services Ltd.: The Challenge of Growing a Family Business

Abstract

Based in Kerala, Popular Vehicles and Services Ltd. (PVSL) is a leading automobile dealer of Maruti Suzuki India Ltd (MSIL). PVSL is categorized as a Platinum Plus dealer by MSIL, an honour reserved for top performing dealers. The company’s innovative business practices and Human Resource Management approach have enabled it to achieve growth in a competitive market, and be considered as a role model. Its unique employees’ management approach allowed it to function as a non-union firm, in a geography dominated by trade unions. However, the economic conditions, varying customer preferences, and other changes, have triggered the need for reconsidering its operational and management practices. The owner, (Kuttukaran Group) wants the company to be the No. 1 dealer in India. Though a family firm, PVSL has recruited professionals from the market and gave them sufficient space to operate. In this context, the case discusses about managing and professionalizing family firms, handling financial, sales and other growth issues in a tough market.