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Journalism of Courage
Utility vehicle and tractor maker Mahindra & Mahindra is entering the turf of Ashok Leyland and Tata Motors. The company is now planning to produce heavy trucks and buses for Indian and export markets.
The board of directors of M&M has recommended a bonus issue to the equity shareholders in the ratio of 1:1, ie, one bonus share for every one ordinary share held.
Mahindra will enter into a joint venture with International Truck and Engine Corporation (ITEC), the US-based producer of mid-range diesel engines, medium and heavy trucks.
The project cost of the new venture, Mahindra International Pvt Ltd, is pegged at Rs 400 crore. In the JV, Mahindra will have 51 per cent stake and ITEC will hold 49 per cent stake.
M&M Vice-Chairman and MD Anand Mahindra said the JV would have the capacity of 50,000 vehicles by 2008 from 15,000 capacity now.
