Automobile major, Mahindra & Mahindra (M&M) is planning a foray in infotech (IT) and advanced Research & Development (R&D). The company plans to launch two fresh ventures to execute these businesses.
M&M is the leader in the utility vehicle segment (61% market share in October 1999) and the tractor segment (30% market share). It is also engaged in the manufacture of light commercial vehicles (LCVs). In addition to the automobile segment, the M&M group also has interests in information technology (IT) and realty.
The first joint venture - Avigna Netroit Ltd. (ANL) is a tie-up with Avigna Technologies, an Internet content provider for web content development of M&M's tractor and other automotive businesses. M&M will pick up 49% equity stake in this venture.
The second venture with Jaya Automotives Private Ltd. is christened - Jayem Automotives Ltd. for increased R&D and for undertaking independent projects for the M&M group. M&M will invest in this venture through Mahindra Auto Specialities. Ltd., which will hold 55% equity stake. This was reported by a leading financial newspaper.
From Anand Mahindra's (company managing director) comments the company is not looking at these ventures to boost revenues, rather such ventures have become critical for the company's survival.
Both these ventures are likely to add a fair amount of value to the company's operations. While the web development foray will enhance the company's presence on the Internet, the research venture will strengthen the company's R&D facilities.
Mahindra & Mahindra has announced its financial results for the second quarter of the financial year 2016-17 (2QFY17). During the quarter, revenues grew by 15.6% YoY and adjusted net profits grew by 18.5%.
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