The Mumbai-based firm Car Maunfacturer Mahindra and Mahindra will get 35% stake in the proposed joint venture. The remaining will be held by the Sri Lankan Partner.
Mahindra and Mahindra (M&M) Ltd. has initialed a concurrence with Ideal Motors of Sri Lanka to set up a joint venture in Sri Lanka.
The joint venture organization is being set up to manufacture and assemble vehicles in Sri Lanka.
The proposed interest in the Sri Lankan joint venture is liable to still get approval by the Reserve Bank of India.
The joint venture will reinforce the nearness of M&M in the island country. Since November 2009, Ideal Motors has been the sole authorised distributor for motor vehicles and motor cycles manufactured by M&M. The JV will additionally secure M&M’s situation as a main automobile producer in Sri Lanka. M&M is allegedly getting a charge out of half piece of the pie in the over one ton classification and 35% in the underneath one ton classification.
Mahindra and Mahindra today said it will frame a joint wander with Sri Lanka’s Ideal Motors to assemble and distribute vehicles in the island country.
The organization will hold 35 for each penny of the offer capital in the joint venture(JV), with the rest of the proposed to be held by Ideal or any of its subsidiaries, M&M said in an press release.
The new organization will be framed with the end goal of gathering of vehicles in Sri Lanka and M&M’s speculation won’t be in excess of 25 crore Sri Lankan rupees however subject to essential RBI approval, it included.
The organization, in any case, did not detailed what kind of vehicles would be amassed through the new joint wander.
The homegrown auto major has a scope of utility vehicles and SUV other than being a noteworthy player in tractor segment in India.