India’s leading automaker Mahindra and Mahindra Limited (M&M) announced setting up of a Joint Venture (JV) with Sri Lanka-based Ideal Motors Private Limited (Ideal) for assembling its vehicles in the neighboring island country.
M&M will subscribe up to 35% equity stake in the JV with remaining stake held by Ideal and its affiliates. The acquisition is expected to be completed by April 2018. M&M’s investment in the JV would amount to Sri Lankan Rupee LKR25cr (Rs10.41cr, assuming the rate of Rs0.42/LKR). M&M already has a presence in Sri Lanka for nearly a decade. Since November 2009, Ideal Motors has been the sole authorized distributor for Mahindra Motor Vehicles and Motor Cycles. It has sold more than 50,000 M&M vehicles in Sri Lanka till date.
The JV will further establish M&M’s position as a leading automaker in the island nation. M&M already enjoys 50% market share in the “above-1 ton” category and 35% market share in the “below-1 ton” category.
(indiainfoline)
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