India’s Mahindra Finance a part of the USD 17.8 billion Mahindra Group is looking at tying up with Ideal Finance Ltd, a part of Ideal Motors.
Chairman, Ideal Motors Ltd, Nalin Welgama told ‘Daily News Business’ that the main aim is to strengthen Ideal Insurance and provide a even better service to Sri Lankans. “We will also be able to make use of the large financial base of Mahindra Finance and offer it to Sri Lankans,” he said.
A registered finance company and having started in 2012 the company has an asset base of 2.3 billion rupees with 9 branches island-wide.With over 1,000 branches across India, Mahindra Finance is ranked fifth in Financial Services Sector in India.
He said that the two companies have also planned to commence the manufacture of Sri Lanka’s first ‘Made in Sri Lanka Car’ (Mahindra KUV 100 spots utility vehicle) in Sri Lanka by then end of this year. “Some of the funding for this project too would come from this tie up. We hope to commence operations by August this year and hope to roll out the first car by 2018 end.”
Welgama said that they will initially invest around US$ 20 million for logistics and a further US$ 40 million for components.
“We will also offer attractive leasing packages for this new ‘Made in Sri Lanka Car’ through Ideal Finance,” he said.
Welgama recalled that since Sri Lanka is one of the top three overseas markets from 90 countries for Mahindra group its chairman Anand Mahindra is keen to assist Sri Lankan operations.
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