Mumbai (Maharashtra) [India], Mar 27 (ANI): The board of directors at Mahindra & Mahindra Ltd has given in-principle approval for consolidation of Mahindra Electric Mobility in the company.
Mahindra Electricity Mobility is a step-down subsidiary of M&M. The consolidation will categorise EV operations in two focused verticals -- last mile mobility (LMM) and electric vehicle tech centre.
"Simplifying the structure will drive improvements through innovation, execution excellence, efficiencies and economies of scale," M&M said in a statement. "Additionally, it will unlock shareholder value."
The initiative will provide LMM vertical with complete ownership of the value chain for last-mile mobility solutions to drive growth and execution.
It will also provide EV tech centre with the depth of resources and energy with M&M's larger ecosystem of product development capability in Mahindra Research Valley (MRV) at Chennai, North America and Europe while exploring partnership and alliances.
Executive Director Rajesh Jejurikar said electric vehicles will be the future of the automotive business.
"To be future-ready, we believe that EVs should be part of the core and mainstream business. This intent to consolidate is a part of our EV strategy which aims to electrify various segments that will popularise e-mobility," he said.
"We will continue to draw upon our deep understanding of customer needs to bring in exciting new products in the EV space."
Besides, M&M's board has authorised its loan and investment committee to decide on the mode of consolidation of Mahindra Electric Mobility into the M&M including finalising the scheme, valuation and swap ratio.
At present, there are more than 32,000 Mahindra EVs on Indian roads which have covered more than 270 million km.
M&M said it is focused on the entire EV ecosystem including last-mile connectivity, fleet mobility, personal mobility and research & development, which is expected to fuel growth through technology and innovation. (ANI)