Mahindra & Mahindra Ltd., India's leading auto brands, has entered into a joint venture agreement with its existing partner, TMI Pacific, a local Australian importer and distributor of vehicles.
The Mumbai-based company said the agreement would pave way for the formation of a new company by name Mahindra Automotive Australia this week. The new facility will continue to concentrate on marketing, promotion and retail of Mahindra vehicles in Australia. In the new joint venture, Mahindra will hold 80%majority stake, while TMI Pacific will hold the rest.
Under the new structure, Michael Tynan will become a Director and bring his rich experience of the Australian Auto industry to the new venture. The Chief Operations Officer, Claire Tynan, has been elevated as Chief Executive Officer, while the current team of head office staff and network of dealers around the country will remain unchanged. As before, their mandate will be to continue the growth and distribution of the Mahindra brand of vehicles throughout Australia.
The company said that it would reveal further plans for the new company along with future models for the market in an upcoming event for stakeholders, which will be hosted in Australia next year.
Mahindra continues to grow strongly, in spite of many automotive manufacturers feeling the economic crunch globally with job losses, factory closures, considerable cut back in production and workweeks for some. For the quarter ended September 30, 2008, the company's net profit, excluding exchange loss and other exceptional and special items, grew by 9% and that of revenues by 14%.
The Vice President, Automotive Sector of Mahindra & Mahindra, Pawan Goenka, said, "we are delighted to extend our relationship with TMI Pacific, which has contributed in large measure to the success of the Mahindra brand in Australia. As we merge to form a new entity, our collective dedication will ensure that the Mahindra brand will become further ingrained in the Australian market."
The Chairman of TMI Pacific and the Tynan Motor Group of companies, Michael Tynan, said, "Over the past 18 months TMI Pacific has successfully laid the foundation and carved a niche in the Australian landscape for the Mahindra range of utility vehicles. We believe that the stake that Mahindra is putting in Australian soil and the commitment they are showing to becoming even more strongly involved in our market is a testament to their belief in it."
At the BSE, Mahindra & Mahindra shares are presently trading at Rs.360.45, down by Rs.18.75 or 4.94% on volume of around 69K shares.
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