In 1980, Mr.Sanat Mehta joined Standard Automobiles of Ahmedabad as a mechanic. In appreciation of his excellent work, he was soon promoted to the post of chief mechanic. Mr. Mehta’s professional ability, his pleasing manners and sense of responsibility endeared him to the customers of Standard Automobiles to such an extent that some of them persuaded him to commence his own automobile repair workshop. One of them persuaded him to commence his own automobile repair workshop. One customer, Mr. Nitin Shah offered to rent a part of his godown situated in a busy street of Ahmedabad city. Another customer, Mr.Mohan Kapoor, the local manager of a large bank mentioned that a loan of up to Rs. 100,000 could be made available to him under the scheme for financing small business. After some discussion with members of his family, Mr. Mehta decided to commence an automobile service and repairs workshop under the name of Mehta Automobiles. For this purpose, he invested Rs. 50,000 from his past savings and accepted Mr. Shah’s and Mr. Kapoor’s offers. A part of the amount was deposited in the bank in the name of Mehta Automobiles.
The enterprise had a good start, thanks to the patronage of some old customers of Standard Automobiles. Mr. Mehta publicized his operations by displaying cinema slides in selected local cinemas and soon his workshop became well known in that area. In the beginning, Mr. Mehta did all the work of the mechanic, helped by two assistants recruited at the time of the commencement of the business. Soon he added a spare parts selling section to his business as this was quite a profitable associated activity. In this, he was helped by his son Mr. Rajendra Mehta who also assisted him in collection of cash from debtors.
During his service at Standard Automobiles, Mr. Mehta had come to know very well some wholesalers of service materials, such as tools, stores and spare parts. This helped him in buying such material on credit....
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