Mahindra & Mahindra (M&M) has announced a restructuring in terms of which the trucks and buses operations will be demerged from Mahindra Trucks and Buses Ltd. (erstwhile Mahindra Navistar Automotive Ltd.) and merged into M&M.
Alongside, the company will invest Rs.200 crore to strengthen the existing product line-up in the trucks and buses business and Rs.300 crore to develop new product lines.
A statement from M&M said that the demerger from Mahindra Trucks and Buses Ltd. (MTBL) to M&M was to derive greater synergies.
Post the demerger, MTBL will run the spares business for the company. The legal process is likely to be completed in the next 6-8 months. “We are fully committed to our commercial vehicles business and intend to focus on running the light commercial vehicle (LCV), truck and bus business as a separate division post the proposed demerger, with the objective of growing our presence in the Indian commercial vehicle industry,” Pawan Goenka, President, Automotive & Farm Equipment sectors, M&M, said in a statement.
“We plan to invest significant resources over the next few years which will help us strengthen our existing product range and refurbish the current LCV range. Exploratory work has also begun for the introduction of new products that will help address the ICV and MCV segments in the 7.5-16 tonne GVW [gross vehicle weight] category”.
MTBL also announced new branding for its heavy commercial vehicle range. The multi-axle trucks will now be called Mahindra Truxo 25 and Truxo 31, Tractor trailers will be called Mahindra Traco 35 and Traco 40 and the tippers will be called Mahindra Torro 25 and Torro 31.