Driven to success

"Business is growing by leaps and bounds” as new ventures are attracted to the investor friendly state of Gujarat, states Oorvaksh Me­dora, proprietor of the car rental firm Medora Travel Service(MTS). "We’re more into business with corporates… Companies are not buying cars. Drivers (not) coming on time,” maintenance and other problems make owning cars "a big headache. (Hence) there is an increase in the demand for (hired) vehicles…I could increase the number of cars in our fleet from 40 to 100” but constraints of manpower deter him.

(Above) Oorvaksh and Delnaz Medora;

Most of Medora’s chauffeurs come from the neighboring state of Rajasthan, he notes. "There are a lot of Rajasthanis in Ahmedabad due to the close proximity.” With their traditional refined behavior and disposition towards the hospitality industry, they make the customer feel at ease. Rajasthan’s economy is driven by tourism. But as the prosperity in that northwestern state burgeons, so do employment opportunities. The incentive to migrate to another state in search of jobs lessens. This causes "a shortage of new drivers,” observes the automobile engineer turned businessman.
"The drivers are our main strength. We spend a lot on their training throughout” their tenure, says Medora. They are coached in driving, safety, behavior, hygiene and attitude. Most of the drivers have worked for private parties for a few years "first and then they join us.” Contacts are made "through our existing drivers.”
MTS has opened branches in Baroda and Surat with three cars each. "That’s also growing,” observes Medora. The firm also represents 40 car rental companies across India. "If you require, we can provide cars (anywhere).We also represent quite a few multinational car companies” such as Leaseplan, a subsidiary of Volkswagen, Sixt based in the Netherlands, Orix in Japan and Avis in the USA… Leaseplan uses our offices in India where they don’t have their own office.” The rental from global clients "is a significant part of our business.”

Oorvaksh Medora with drivers "our main strength” and vehicles

The key to profitability "is keeping track of fuel and maintenance,” notes Medora. Fuel consumption is fed into a computerized program on a daily basis. A mileage card is maintained for each vehicle. Diesel may be filled from any pump. All the cars are equipped with a vehicle tracking system (VTS) but the company only calls the driver once the car is stationary for some time so as not to distract the driver while he is driving. One also has to be vigilant that customers are not lured away by freelance drivers promising to offer lower rates.
The all-diesel fleet is bought "with a preference for Japanese cars” though the company has several Tata Indigos and Indicas. If the cars are regularly maintained "then no major repairs” are required, opines Medora. Once the car is three to four years old and has clocked around 3,00,000 kilometers, the vehicle is sold, garnering around 20 percent of its cost price.
Toyotas are the car of choice "for our business,” he notes. While a Mahindra Xylo retails for around Rs 8,50,000 to Rs 10,50,000 and a Toyota Innova for Rs 10,50,000 to Rs 15,00,000, "both rent for the same price,” says Medora. Yet MTS opts for the more expensive vehicle as Medora finds the Toyota cars "better built,” more reliable and with "lower maintenance costs.”

Trying different businesses
MTS had its antecedents in 1986 when Oorvaksh’s late father Rashid retired from United India Insurance Company as a branch manager in 1981 to "try different businesses to keep himself occupied.”
Rashid’s friend, Rustom Ginwalla, who ran Mercury Service Station told him: "I am buying a car (for renting). Do you want to buy one too?” Two Ambassador cars were bought in 1986. Rashid looked after operations, "Mummy (Meher) looked after accounting and bill making,” recalls Oorvaksh.

Oorvaksh Medora with portrait of his late father Rashid

To drum up business Rashid "went around from company to company meeting people.” At that time Oorvaksh was studying automobile engineering at Bangalore’s P. E. S. Institute of Technology. He then joined Aderbad Sethna’s Apex Motor Works and his son-in-law Jamshed Contractor’s Mohanish Auto Setrite in Poona which specialized in high end cars, specially Jaguars. "Ratan Tata’s and Vijay Mallya’s vehicles would come from Bombay” for repairs. After a year-and-a-half in 1994 Oorvaksh started his own workshop in Poona, Medora Auto Care. By that time his father had grown his business from two to five cars. As newer, better made cars were introduced in the Indian market, the requirement for repairs dropped and Oorvaksh joined his father’s business in 1998. "We had quite a few secondhand cars. But they were not very profitable because of the repair costs. Like typical bawas he didn’t want to compromise on the quality of the cars or service. All the cars ran on petrol at that time. We then introduced diesel cars.”
The business suffered a setback from 1998 till 2004 "as Gujarat faced political unrest, earthquake and riots. The business also faced tough competition.” In 2004 Oorvaksh managed a petrol pump for the Indian Oil Corporation for a year under a COCO (company owned, company operated) arrangement. "It was a very good experience. It taught me to deal with manpower” and management. Around that time his wife Delnaz (née Anklesaria), an IATA (International Air Transport Association) certificate holder who worked in a travel agency for four years "started helping dad here. She also started ticketing and hotel booking… Dad always wanted a full fledged travel agency… From 2004 there was no looking back,” recalls Oorvaksh. "Delnaz and I concentrated on car rental” and travel related services "100 percent.”
Oorvaksh’s great-grandfather Dhunjee Jamshedjee Medora started the family’s insurance business with Oriental Insurance, a British company. At its peak they were agents for Bombay state, the Deccan and Calcutta, or as Oorvaksh notes, "half of India at that time.” But before his dad could join the family business the agency had ceased. Rashid joined South British Insurance Corporation, a New Zealand based company which after nationalization in 1973 (Life Insurance was nationalized in 1956) became United India Insurance.
Rashid had a keen interest in the history of the Ahmedabad Parsis, sparked off by people inquiring "kaun kaun naa sagaa (who was whose relatives)?” His "being one of the oldest families in Ahmedabad he knew quite a bit.” At the age of 80 he learnt how to operate a computer and "researched the roots of our family.” Several of his findings he shared with Parsiana readers as a regular contributor to the magazine’s column. Finally he compiled the history of the Ahmedabad Parsis which is to be published by the family shortly. The first Parsi to come to Ahmedabad was Dosabhai Kothawala who arrived on February 13, 1780 with the British army and left behind distinguished descendants. Oorvaksh’s great-grandfather came from Billimora in the late 1800s.
Rashid was a trustee of the Ahmedabad Parsi Panchayat and Oorvaksh says he may consider trusteeship "in the future when I have free time.” He has a daughter Tia, aged six and a son Kayan, aged four, and two sisters, Nishmin Rustom Marshall, a psychologist, and Vahishtai Jamshed Daboo, who has done her masters in audio therapy. Oorvaksh, like his father, has a liberal outlook on community matters. Meher, who is "full fledged into social work,” however is conservative, but not orthodox, he notes. When Delnaz who sits next to Oorvaksh in their well lit and airy Badakdev ground floor office and was busy with a customer was asked if she was liberal, she replied, "Absolutely.”
Would he recommend the car rental business to young Parsi entrepreneurs? "It’s a good business,” he replies. "It does not require formal training. You should have a good knowledge of cars and should be able to manage the drivers. You should start with one car as that does not require risking a lot of money. Then slowly increase business. Banks give loans from 75 percent to 95 percent of the cost of the car, at a 12 to 15 percent rate of interest.” For a first-time car buyer Oorvaksh recommends the Maruti Alto, and if the budget permits, the Swift diesel or Dzire.
"I find the Swift diesel very peppy with good air conditioning and great mileage. The Nano is a very well designed car. Unfortunately it did not meet Ratan Tata’s expectations.” Tata had hoped that people who owned two wheelers would switch to the Nano. "The one lakh rupee price has gone up considerably to around Rs 1,30,000. That section (of society) is the hardest hit in times of financial crisis. He terms the car "too small for our business. It could do well as a radio cab, (taxis one can phone and call for).” He finds the Tata vehicles "have minor nagging problems. In the long run it becomes an irritant… European cars don’t have good resale value but some people are not bothered with resale.” He doesn’t recommend SUVs (sports utility vehicles) as they are "fuel guzzlers. I never suggest an SUV unless some specific requirement is there.
"There is a huge choice in the market. What do you want? Power? Mileage?… you can almost get a customized car” depending on your funds. And also if you hire one from MTS.