Thursday, July 31, 2008

M&M Enters Two-Wheeler Market, Forms JV With Kinetic - July 31 , 2008

Mahindra & Mahindra said on July 30 that the company has formed a joint venture with Kinetic Motors for its foray into two-wheeler market. M&M will hold an 80 per cent stake in the JV for Rs 110 crore. The deal will help in capturing share in Indian and global two-wheeler market. Mahindra seemed particularly upbeat about the two-wheeler industry and said that it is the right time to enter two-wheeler business. Anoop Mathur would be the CEO of the joint venture and it would buy-out all Kinetic Motor assets and patents.

1 comment:

Abhishek said...

According to an article on UTVi, the management said that it acquired KM so as to "leverage different skills set". But will the ongoing losses by Kinetic affect M&M? What will be the effect on the 4-wheeler company of M&M? (source:http://utvi.myrecourl.com)