SK C&C diversifying biz portfolio

By Kim Yoo-chul

SK C&C, the information technology (IT) solutions affiliate of the SK Group, is enhancing its non-IT business as the group seeks to reduce reliance on the current volatile logistics-focused business.

The Bundang, Gyeonggi Province-based outfit is putting more focus on non-IT business areas by diversifying its business models. The recent acquisition of C&C’s used car-affiliate ― SK EnCar ― reflects C&C’s ambition to match that initiative, the company said in a statement.

``We will use EnCar’s network as a core asset to bolster our presence in non-IT businesses and to cut heavy dependence on the local market,’’ the statement read.

The company said it plans to foster its EnCar business with the aim of creating 1 trillion won ($891 million) in revenue and generating 100 billion won in operating profit, annually, by 2017.

EnCar offers a variety of services including the purchase, sales, export and distribution of vehicles as well as car parts in the used car market. More than 86,000 vehicles are traded annually on its website, meaning its online business size is about two-thirds of the used car market.

In February, 2012, SK C&C completed the acquisition of all shares of EnCar from SK Energy in order to reinforce its growth momentum. Since then, the firm has been fine tuning EnCar’s network and realigning its structures.

``When you see such fact sheets, EnCar has already proven its prowess in network management. SK C&C will add our online business platforms. We are aiming to develop EnCar’s existing online business as both online and mobile marketplace platform-based businesses,’’ said an SK C&C spokesman.

He added more investment will be made for business expansion, such as ``dealer management solutions.’’

C&C also plans to establish joint ventures with overseas partners to pursue localized business strategies according to their markets, though the company spokesman declined to give details, citing the sensitivity of the issue.

Referring to a growing appetite for used cars via online sites, the C&C spokesman stressed the acquisition of EnCar will help C&C significantly boost its brand awareness outside the Korean Peninsula and accelerate its efforts to develop untapped businesses.

``We want to model after the Carsales.com case. It was listed in 2009 and now its total assets exceed 2 trillion won, which is very impressive. We won’t hesitate but we will be aggressive to utilize our in-house resources to create a successful business model in the shortest time,’’ the spokesman said.

With more than 40 branches and agencies in Korea, the EnCar network also offers international buyers a specialized and responsible export service, which is based on its strong reputation in the domestic market.