Mahindra enters pact with Chinese firm

Mahindra enters pact with Chinese firm

Tuesday, 09 November 2004, 08:00 Hrs
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MUMBAI: India's top utility vehicles and tractor maker Mahindra and Mahindra (M&M) Tuesday announced a joint venture pact with China's Jiangling Motors Corporation to acquire an 80 percent stake in the company's tractor unit.

M&M will acquire the stake in Jiangling Tractor Company for $10 million and invest another $8 million in the tractor-manufacturing firm, the company informed the Bombay Stock Exchange.

"Jiangling Tractor Co will provide the joint venture with a strong manufacturing base, an existing distribution network in China and a complimentary product range," M&M said in the disclosure.

Shares of M&M rose 1.3 percent to the day's high of 457.15 on the Mumbai bourse on news of the joint venture, but dropped subsequently to 449.30 in line with the general market trend.

Source: IANS
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