Rise in business keeps auto shop running
6/6/2008
Five years after opening his first automotive repair shop in San Antonio, Raj Mulwani is opening his fourth store with another on the way.
Mulwani's Car-X Auto Service shops have experienced double-digit growth every year since entering the San Antonio market.
Mulwani is the first person to bring the Car-X franchise to Texas and he says the reception has been fantastic. His first store, located at 8780 Huebner Road, had sales in excess of $1 million in 2007 and ranked No. 14 overall out of the 168 Car-X franchise stores nationwide.
Based in Schaumburg, Ill., outside of Chicago, Car-X was founded in 1971 by former executives of Midas Inc. But the chain never had ventured into Texas before Mulwani decided to open his first shop in 2003.
"When we opened our first San Antonio store, people had never heard of Car-X but they were nice enough to give us a try and that's all we needed," Mulwani says.
The business started off slowly at first, with customers coming in for flat tire repairs and bulb replacements and eventually moving up to oil changes, tire rotations and minor maintenance jobs. But after five years of building up trust and receiving AAA certification, the stores handle any and all kinds of major engine repairs and transmission work on all makes and models of vehicles, foreign and domestic.
"We employ the top technicians in San Antonio and all of our shops have state-of-the-art diagnostic, alignment, air conditioning and tire equipment," Mulwani says.
The newest Car-X store is in a prime spot along the Interstate-10 West corridor in Leon Springs just northwest of San Antonio. Originally Leon Springs Automotive, Mulwani purchased the buildings from the previous owner and oversaw a makeover and transition while keeping the store open for business the whole time.
"We are finding that a lot of people are happy we are here," Mulwani says. "This is the only (auto repair) store in eight or 10 miles in a fast-growing area."
Because it sits atop the Edwards Aquifer recharge zone, competitors are restricted from building new stores in the area and the only way for Mulwani to enter the market was by buying an existing store that had been grandfathered in.
The new store is also one of the largest in the Car-X franchise with room for up to 20 bays, notes Rich Brayer, vice president of marketing for Car-X.
"Raj is one of our finest franchisees, successfully opening three profitable stores in the last five years," he says. "Raj truly understands the marketplace and how to satisfy his customers."
Mulwani says the previous store had a lot of old and outdated equipment and had been turning away lots of customers because they were unable to do the necessary repair work.
The fluctuating economy and rising fuel prices are causing many customers to demand better maintenance for their current vehicles, Mulwani says. Rather than trading in an old car for a new one, many people now choose to have major repair work done to keep their current car running longer.
The boom in business has encouraged Mulwani to expand his reach into the Austin market. He plans to open up his fifth store this fall near Round Rock at the intersection of Highway 620 and Anderson Mill Road.
Mulwani's parents were originally from India. He was born in England and raised in Canada before his family moved to the United States when Mulwani was in high school. He attended a vocational high school in New Jersey that specialized in automotive repair and then earned a mechanical engineering degree from Rutgers University in 1995. His first job out of school was with the U.S. Gypsum Co. in California, and he eventually ended up in Sweetwater, Texas. He met his wife, Alma, in San Antonio and decided to settle down and start a business here.
Mulwani's stores had $2.7 million in revenues in 2007 and he expects that to grow with the opening of the new Leon Springs store and the Round Rock store later this year. He currently employs 25 people.
One of those employees is Doug Stine, manager of the Leon Springs location. Stine has 30 years of experience in the auto repair business, including 12 years running his own independent shop.
"It is hard getting started as an independent today," Stine notes. "Having the support of a national franchise is a huge advantage."
Stine says he is very impressed with how Mulwani has grown his business in such a short time. The San Antonio stores, which have been open less than five years, are competitive with other Car-X stores in the chain which have been open for 20 years and longer, he says.
One of the keys to success today is keeping up with the latest technology, Stine says. Automobiles today are more complicated with some having as many as 20 onboard computers operating everything from climate control to the transmission.
"People have to rely on service technicians more and more to do things they used to be able to do themselves," he notes.
Online: sanantonio.bizjournals.com
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