Auto major Mahindra & Mahindra (M&M) is readying the launch of three new automobile platforms - the first of which would hit the roads next fiscal.
MUMBAI: Auto major Mahindra & Mahindra (M&M) is readying the launch of three new automobile platforms - the first of which would hit the roads next fiscal.
The company would invest about Rs 600 crore each in developing the platforms, Pawan Goenka, president, automotive sector, Mahindra & Mahindra, said on Monday.
“Our Ingenio platform is on track, which would be rolled out of our Nashik facility. Besides that, we are also working on a new upmarket sport-utility vehicle, and are already more than half-way through for a mass-market platform for a passenger as well as a cargo carrier,” Goenka said.
The last two products would be rolled out from M&M’s greenfield facilities in Pune and Chennai. At Chennai, the company, in partnership with Nissan and Renault, is building a facility with an investment of Rs 4,000 crore. Turn to Page 22 M&M gears up to roll out three new vehicles
In Pune, the M&M-International Trucks joint venture is setting up a commercial vehicle plant with an investment of Rs 2,500 crore. These investments are planned over the next three-four years. Besides, M&M’s farm equipment division is planning to invest Rs 350 crore in product development and capacity addition this year.
Meanwhile, M&M on Monday announced its January-March results. On a standalone basis, it reported a net income of Rs 2,747 crore, up 20% from the year-ago period. Net profit, however, fell 26% to Rs 236 crore.
“Fourth quarter net profit appears to be lower because last year we had some income from exceptional items like a stake sale in Mahindra Finance etc. On a like-to-like basis, the net profit is up 36%,” vice-chairman and managing director Anand Mahindra said.
Owing to the robust performance from subsidiaries, consolidated revenue grew 41% to Rs 5,882 crore for the quarter. Consolidated profit, net of exceptional items, prior-period adjustment and tax and minority interests, was Rs 166.2 crore against Rs 599 crore in the corresponding quarter last year.
For the year, the company’s topline crossed the $4.5-billion mark. Operating profit margin rose 81 basis points to 12.57%. This fiscal, another company subsidiary, Mahindra Holidays, would go public.
Meanwhile, M&M is taking the first step in integrating its $800 million auto component businesses, housed under Systech division. Under a broad objective to have one forging company (against several now), one engineering services, one castings and one steel and stamping company, the Mahindra Forging board would meet on June 5 to consider bringing all forging companies under itself.
Systech president Hemant Luthra said the company is homing in on engineering services companies in North America and Germany for possible acquisition. “We are looking at companies in the $20-25 million revenue range,” he said.
Luthra said Systech is toying with the idea of entering the Chinese forging market through the contract manufacturing route against an acquisition. “There are many forging units in China which have capacity but no marketing set-up. We can sell the products through our marketing offices in Europe and US.
At $500 million, Systech is India’s second-largest forger; stamping is about $175 million, casting $60 million, and engineering services $35 million. The division is under a $139 million capex plan, which would see it double its forging and casting capacity.
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