The Hindu Business Line : M&M scouts for distributor in Central Africa

Exploring markets
M&M, through its alliance with Renault, France has the possibility of exploring overseas markets, especially those markets where Renault has a strong presence. The ex-colonies of France are some of the markets where the French company has a large market share.

Mumbai , Nov 20

Mahindra & Mahindra (M&M) is scouting for a utility vehicle distributor in Central Africa.

The company, which has presence in South Africa, Kenya and Egypt, now intends to cover the whole African continent by appointing a distributor in Central Africa, said Dr Pawan Goenka, President (Auto Sector), M&M.

The company has a hub-and-spoke arrangement with respect to its foreseeable presence in the continent.

Its 100 per cent subsidiary in South Africa (Mahindra South Africa) is established to meet the market requirements of the country and neighbouring countries such as Namibia, Botswana, Zimbabwe and Mozambique.

In Egypt, the company has tied up with Bavarian Auto Trading Company, an Egyptian automobile manufacturer and trader, for setting up a completely knocked down assembly unit.

The facility would roll out 2,000 units in the first year of its operations.

This operation would also cover other North African countries such as Sudan, Chad, Libya and Niger.

In order to cover the eastern part of Africa, M&M recently announced a tie-up with Oriel Ltd to cover the Kenyan market and neighbouring Tanzania, Somalia, Ethiopia and Uganda.

The expected distributor in Central Africa is most likely to cover Cameroon, Central African Republic, Gabon, Democratic Republic of Congo, Angola and Zambia.

M&M, through its alliance with Renault, France has the possibility of exploring overseas markets, especially those markets where Renault has a strong presence.

The ex-colonies of France are some of the markets where the French company has a large market share.

The Indian partner could venture into these markets with Renault's local expertise in market knowhow and retail chain; however, it has decided to venture on its own through its own chain of distributors in the continent.

Nevertheless, it has the right to exercise this possibility in various other markets.

The company's scrip closed at Rs 818.70, up 0.84 per cent, on the BSE on Monday.

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