Mahindra and Mahindra creates subsidiary in Dubai

Mahindra and Mahindra (M&M) informed the exchanges on Wednesday that Mahindra Susten, the renewable business arm of M&M has formed a wholly owned subsidiary MSPL International DMCC.

The company in a press release stated that "MSPL International DMCC" has been incorporated in Dubai Multi Commodities Centre ("DMCC"), Dubai, United Arab Emirates ("UAE") with effect from 8th October, 2019 as a wholly owned subsidiary ("WOS") of Mahindra Susten Private Limited, which is a WOS of Mahindra Holdings Limited, which in turn is a WOS of Mahindra & Mahindra Ltd.

M&M further added that the new company will be mainly engaged in trading related to Solar Energy Systems and Components and providing Services related to Renewable Energy.

Meanwhile, there are reports that M&M will be forming a joint venture (JV) with US auto manufacturer Ford Motor Co. Ford will transfer its entire business in India, except an engine plant in Sanand, Gujarat, and its Chennai-based Global Business Services unit, to a new joint venture company controlled by M&M. The Indian automaker will own 51 per cent in the new entity while the remainder will be held by Ford. M&M will invest Rs. 657 crore in the JV, which has a likely equity value of Rs. 1,289 crore. The transaction is expected to be completed by mid-2020, after which the JV will become operational.

On Wednesday, shares of Mahindra & Mahindra closed in BSE at Rs. 576.10 as compared to the previous close of Rs. 552.60. The stock hit an intraday high of Rs. 578.80 and intraday low of 551.95.