The Hindu Business Line : International Truck to use Mahindra joint venture for exports

Mr Keshub Mahindra, Chairman, Mahindra & Mahindra Ltd, and Mr Daniel C. Ustian, Chairman, President & CEO, Navistar International Corporation, after signing the joint venture agreement in Mumbai on Thursday. — Paul Noronha

Mumbai , Nov. 17

INTERNATIONAL Truck & Engine Corporation of the US, the world's largest manufacturer of medium duty diesel engines, would look at Mahindra International for cost-effective export to markets close to India and if it made economic sense, to other markets as well.

The company has production facilities in the US, Mexico, Canada and South America.

"At this point, we are not looking at other ways to enter China. We have set China aside for some other opportunity, but perhaps we can do it with this joint venture itself," Mr Daniel Ustian, Chairman, President & CEO, Navistar International Corporation, the parent company of International Truck, said.

China, he said, was a huge market. But International had chosen to go ahead with M&M in India because there was a cultural match; the partners knew each other (M&M's foray into farm equipment was originally in tie-up with International Harvester) and it was possible to get to the market quicker here.

Besides truck manufacturing, the two partners were also engaged in sourcing components for International from India. This business should be worth $30 million in the current year, $75-80 million by the next and $100 million by 2007, officials said.

International had exited the farm equipment business some 20 years ago.Over the last decade or so, M&M on the other hand, had systematically carved out a strong market presence for its tractors in the US.

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