Mahindra & Mahindra (M&M) Ltd. has initialled an agreement with Ideal Motors of Sri Lanka to set up a joint venture in the island nation.
The Mumbai-based M&M will pick up 35% equity in the proposed joint venture with Ideal Motors.
The remaining will be held by the Sri Lankan partner.
The joint venture company is being set up to assemble vehicle in Sri Lanka.
The proposed investment in the Sri Lankan joint venture is subject to approval by the Reserve Bank of India.
The joint venture will beef up the presence of M&M in the island nation. Since November 2009, Ideal Motors has been the sole authorised distributor for motor vehicles and motor cycles manufactured by M&M. The JV will further secure M&M’s position as a leading auto-maker in Sri Lanka. M&M is reportedly enjoying 50% market share in the above one tonne category and 35% in the below one tonne category.
