M&M to demerge trucks, buses operations
14 August 2013
Mahindra & Mahindra (M&M) has demerged its trucks and buses operations, formerly Mahindra Navistar Automotive Ltd, from the company. The demerger, which is subject to regulatory approvals, is expected to bring in greater ''synergies''.
The erstwhile Mahindra Navistar Automotive Ltd, now MTBL is a wholly-owned subsidiary of the Mahindra Group.
The country's biggest utility vehicle manufacturer would invest about Rs 200 crore to strengthen its existing product line, and an additional Rs 300 crore for products.
''We are fully committed to our commercial vehicles business and intend to focus on running the LCV, truck and bus business as a separate division, post the proposed demerger, with the objective of growing our presence in the Indian commercial vehicle industry,'' said Pawan Goenka-President Automotive & Farm Equipment Sectors at Mahindra and Mahindra.
''We plan to invest significant resources over the next few years, which will help us strengthen our existing product range and refurbish the current LCV range. Exploratory work has also begun for the introduction of new products that will help address the ICV and MCV segments in the 7.5 to 16 ton GVW category,'' he added.
MBTL also announced a new branding for its heavy commercial vehicle range. It has named multi-axle trucks Mahindra Truxo 25 and Truxo 31, and tractor trailers Mahindra TRACO 35 and Traco 40, and tippers Mahindra Torro 25 and Torro 31.
''The new nomenclature and rebranding demonstrates our long-term commitment to the commercial vehicle business which has the full support of the Mahindra Group. While our name has changed, what remains unchanged is our determination to deliver on our customer's evolving needs,'' said Nalin Mehta, managing director and CEO, Mahindra Trucks and Buses Limited.
''With a powerful range of products including HCVs, LCVs and buses, and a continued focus on breakthrough innovations we will continue to deliver market-leading performance and enhanced products and services for the Indian transport industry,'' Mehta added.