Indian auto-to-technology conglomerate Mahindra Group has begun a restructuring process to split its automobiles business into three separate units, the Economic Times reported on Friday.
The exercise, which is in the early stages, is aimed at splitting the auto operations into the electric vehicle (EV), tractor, and passenger vehicle businesses via a demerger process, the newspaper reported, citing people familiar with the talks.
Mahindra Group is also seeking funds for the EV unit and will club it with Italian design house Automobili Pininfarina to form a separate company, according to the report.
The farm equipment and tractor division are likely to become another standalone entity. After Mahindra acquired Punjab Tractors in 2007, this division is the largest tractor maker in India with a 43% market share.
It is also the most profitable within Mahindra’s automobile business. The PV business, with brands like Scorpio, the XUV range, and Thar, is likely to become the third standalone firm.
The Economic Times newspaper had reported the Mahindra Group is also seeking funds for the EV unit and will club it with Italian design house Automobili Pininfarina to form a separate company, citing sources familiar with the matter.
“The company …considers it necessary to clarify to the stock exchanges that there are no plans to split the auto business of the company into three units,” the carmaker said in a filing to the exchanges.
Mahindra Response
Automaker Mahindra And Mahindra Ltd (MAHM.NS) said on Friday it had no plans to restructure the company into three verticals, following a media report that said the company was considering splitting up into an electric vehicle (EV), a tractor, and a passenger vehicle business through a demerger process.
The Economic Times newspaper had reported the Mahindra Group is also seeking funds for the EV unit and will club it with Italian design house Automobili Pininfarina to form a separate company, citing sources familiar with the matter.
“The company …considers it necessary to clarify to the stock exchanges that there are no plans to split the auto business of the company into three units,” the carmaker said in a filing to the exchanges.
The Mahindra Group’s automotive business is its flagship that contributes to 55% of the group’s revenue, while its PV sales account for 25% market share, and the tractor business commands a market share of 43%.
Mahindra Scorpio
A user recently asked him about the launch date of the upcoming Scorpio, a popular SUV offered by his Mahindra & Mahindra Group, the veteran industrialist smartly deflected the attention, saying he “will be fired” if he disclosed that information. But, Mr. Mahindra added, that he is as excited about the launch as the Twitter user.
“Sir please tell me on which date the Scorpio is going to launch because we are waiting for it,” said the person. Replying to the tweet, Mr. Mahindra said, “Sshhhh. If I tell you, I’ll be fired… But I can say this much…I’m as excited as you are.”
Sshhhh. If I tell you, I’ll be fired… But I can say this much..I’m as excited as you are… https://t.co/6EnseHYZDE
— anand mahindra (@anandmahindra) May 6, 2022
Some suggested no one could fire Mr. Mahindra from his own company.
Sshhhh. If I tell you, I’ll be fired… But I can say this much..I’m as excited as you are… https://t.co/6EnseHYZDE
— anand mahindra (@anandmahindra) May 6, 2022
Sshhhh. If I tell you, I’ll be fired… But I can say this much..I’m as excited as you are… https://t.co/6EnseHYZDE
— anand mahindra (@anandmahindra) May 6, 2022
