M&M To Commission Plant Near Chennai

Mahindra & Mahindra, utility vehicle maker, will be setting up its own plant near the south Indian city. This decision has come just after weeks opting out of a proposed joint venture with Renault and Nissan Motor for a manufacturing facility at Chennai. M&M singled out of the deal earlier this year and subsequently announced it was setting up a greenfield plant at Chakan, near Pune, with an estimated investment of Rs 1,500 crore, to produce 300,000 vehicles.

Commercial production at Chakan may begin in two years, about the same time Renault and Nissan will launch production at the Chennai unit. M&M, Renault and Nissan had in February last year announced plans to set up a plant with an investment of Rs 4,500 crore, to produce 4,00,000 vehicles a year for the three companies.

The plant will make trucks for M&M''s venture with Navistar Inc''s International Truck & Engine unit and will also have a powertrain facility. This will be through the Mahindra Renault JV which makes Logan models at the Nashik plant. Other Renault products on the Logan platform will also be sold through this JV company in the years ahead. M&M plans to unleash a five-seater mass market utility vehicle (UV) next year. It would be priced between Rs 4-5 lakh. The new SUV will be first rolled out from the company''s proposed plant in Chakan, near Pune.

M&M Financial To Raise Rs 414 Cr Through Pref Allotment

Mumbai: Mahindra & Mahindra Financial Services Ltd announced on Saturday that it would be raising Rs 414.2 crore through a preferential allotment of 1.09-crore equity shares to two private equity funds at a price of Rs 380 per share. The price represents a premium of over 20% to today's closing price of Rs 315 per share.

The board of directors, which met on January 18, approved the issue of 70 lakh equity shares to funds managed by TPG Axon Capital (TAC) and 39 lakh equity shares to funds managed by Standard Chartered Private Equity (SCPE) at a price of Rs 380 per share. With this investment, TAC and SCPE will own 7.22% and 4.02%, respectively, of the post issue equity capital of the company.

• Check out our Yearender Special

Kotak Investment Bank was the exclusive financial advisor for the transaction.

M&M To Ask Govt Support For Purchasers

New Delhi: Taking a cue from developed economies such as the US and Japan where consumers are provided income-tax benefits for buying hybrid vehicles, Mahindra & Mahindra has said that it will also ask Government support to unveil its Scorpio hybrid in the country. Like in the case of its environment-friendly three-wheelers which the Government incentivised, they will also ask their support closer to the launch of Scorpio hybrid in the country. M&M''s Scorpio hybrid will be unveiled in the domestic market in the next 15-18 months. Earlier in the case of three-wheelers, the Government waived off Rs 80,000 of the vehicle cost for consumers buying it. In the US, a benefit of around $10,000 is given to consumers on income-tax and similar benefits are being extended in Japan too.