India’s homegrown auto major Mahindra & Mahindra on Tuesday announced that it will soon begin assembling vehicles in Sri Lanka, though it did not disclose the type of vehicles to be assembled or the scale of the operation.
According to a filing with the stock markets, the company stated that it will build and operate the facility through a joint venture with Sri Lanka’s Ideal Motors, where it will hold a 35 per cent share capital with the remaining proposed to be held by Ideal or any of its affiliates.
“The new company will be formed for the purpose of assembly of vehicles in Sri Lanka and will be subject to RBI approvals,” the company stated. Mahindra & Mahindra’s investment in the JV will not be more than 25 crore Sri Lankan rupees (Rs 10.4 crore).
The past year has seen Mahindra & Mahindra ramp up their overseas businesses.In September 2017, the firm had acquired Erkunt Traktor Sanayii AS, a Turkish tractor maker and its foundry business for Rs 800 crore through Mahindra Overseas Investment Co.(Mauritius) Ltd.
The beginning of the current financial year had also seen Mahindra’s top officials talk about the need for Mahindra to have a base outside India.
Source: Express News Service
-Agencies
