Mahindra & Mahindra eyes stake in Vayugrid’s Indian operations

In line with its inorganic growth plans, auto major Mahindra & Mahindra is eyeing a majority stake in the Indian business of Michigan, US-based Vayugrid, a business news channel reported on Tuesday.

While people in the know said Vayugrid’s core area of business is contract farming, it also has a presence in alternative energy. The company’s other business interests, if any, could not be ascertained. Nor could it be reached for a comment.

Sanjeev Goyle, senior vice-president (marketing), farm equipment sector, M&M, however, confirmed to DNA that the company is interested in picking up a stake in Vayugrid and that the deal would dovetail with M&M’s FES division.

“It will help us lease our farm equipment to the customer base of Vayugrid,” Goyle noted, but did not divulge any other detail of the deal.

Under FES, M&M sells tractors, diesel generator sets and engines. The company is also engaged in contract farming through the Mahindra Shubhlabh initiative and is an exporter of grapes, pomegranates and seed potatoes.

The news comes days after M&M emerged as the preferred bidder for distressed South Korean automaker Ssangyong Motor Company. M&M is reported to be coughing up about $450 million for the acquisition.

The company is also said to be in the race to acquire a controlling stake in government-owned Scooters India.