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.
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)
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