“The shares of the Anand Mahindra led, Mumbai headquartered Mahindra & Mahindra Ltd (M&M) surged more than 2% to hit an all-time high, thus steering the automaker to join the club of Rs 1 lakh crore market capitalisation on the Bombay Stock Exchange.
“Sri Lanka can only but benefit as M & M will soon be setting up their automotive assembly plant as a result of the joint venture entered into with Ideal Motors Ltd., a fully owned subsidiary of the Ideal Group, to assemble automotive vehicles in Sri Lanka”, said Founder Chairman of the Ideal Group, Nalin Welgama.
Welgama reiterated the fact that the spin off benefits as a result of M & M’s achievement in India will greatly benefit Sri Lanka, providing an impetus to the local automotive industry as well as serving to position Sri Lanka as a venue for many more automotive giants to open plants in the country.
Interestingly, Mahindra & Mahindra Ltd is now bigger than the Tata group’s carmaker Tata Motors, in terms of market capitalisation. The heavyweight shares of Mahindra & Mahindra Ltd were among the top six gainers on BSE Sensex and the fifth-largest contributor in uplifting the benchmark index on Tuesday.
Shares of Mahindra & Mahindra Ltd rose as high as 2.23% to a lifetime peak of Rs 819.1 on Tuesday.
With the breaching of the Rs 1 lakh crore mark in the market capitalisation, Mahindra & Mahindra Ltd went above Tata Motors in market capitalisation. Notably, Mahindra & Mahindra Ltd became India’s second-largest automaker in terms of market capitalisation on Tuesday and was only behind Maruti Suzuki, as far as the automakers are concerned.
“Mahindra will hold a 35% stake in the JV, while Ideal Motors will have a 65% stake. Ideal Motors has been a trusted Mahindra distributor for the last 9 years, and with this joint venture Mahindra will strengthen its presence in the country. The plant will be developed over the next one year under the expertise of the Mahindra team, and will incorporate global technologies”, said Welgama. Sri Lanka is one of Mahindra’s top three export markets, and the new facility will not only contribute to human capital development, but will also enable collective development of local automotive components manufacturers to international standards under the global expertise of Mahindra. “This is a leap forward for the Industry, adding value to the meaning of ‘Made in Sri Lanka’ and opening broader opportunities for national growth”.
M & M’s phenomenal achievement represents a quantum leap for both our companies, building the foundation for newer opportunities for both of us and setting the sky as our only limit”, said Welgama.
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