Companies

Mahindra Vehicle Manufacturers Ltd to merge with M&M

Our Bureau Mumbai | Updated on November 29, 2019 Published on November 29, 2019

File photo

Mahindra Vehicle Manufacturers Ltd (MVML) will be merged with its parent Mahindra & Mahindra as part of a plan to rationalise the group holding structure by way of reduction in the number of entities

MVML was so far operating as a wholly-owned subsidiary of M&M. 

MVML was set up in 2007, as an automotive manufacturing company and having its plant at Chakan, Pune. It manufacturers passenger vehicles like XUV 500, KUV 100, TUV 300, Alturas and the whole new range of medium and heavy commercial vehicles (Blazo & Furio), and construction equipment (EarthMaster).

In March 2015, MVML opened a branch in Detroit, US for design, engineering & development of Automobile. In addition to captive design & engineering work, said branch is also providing services to M&M. 

“The merger of MVML into M&M will result in operational synergies resulting in cost optimisation. Moreover, this would enable M&M to enhance its focus on the automotive business.,"  M&M said in a stock exchange filing. "The scheme will also achieve rationalisation of costs by simplification of management structure leading to better administration and cost savings.  It is the intention of the M&M management to rationalise the group holding structure by way of reduction in the number of entities,” it added. 

“The proposed merger will also simplify the financial reporting to all stakeholders & help evaluate financial results of the Company more meaningfully.  In addition, the proposed merger will result in significant reduction in the multiplicity of legal and regulatory compliances required at present to be carried out by MVML,” it added.

Published on November 29, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.