M&M board gives in-principle approval to consolidation of step-down subsidiary with itself

Mahindra & Mahindra on Friday said its board has given in-principle approval to consolidation of its step-down arm Mahindra Electric Mobility Ltd with itself, to provide requisite resources and direction to the electric vehicles (EV) business. The consolidation would categorise EV operations into two focussed verticals — last-mile mobility (LMM) and electric vehicle tech centre, the company said in a regulatory filing.

”Simplifying the structure will drive improvements through innovation, execution excellence, efficiencies and economies of scale. Additionally, it will unlock shareholder value,” it said. Under the plan, LMM will be provided complete ownership of the value chain for last-mile mobility solutions to drive growth and execution, it added.

Through the consolidation, the company aims to provide EV tech centre with depth of resources and synergy with M&M’s larger ecosystem of product development capacity in MRV (Mahindra Research Valley), North America and Europe while exploring partnerships and alliances. M&M 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.” He further said this intent to consolidate is part of the company’s strategy which aims to electrify various segments that will popularise e-mobility.

M&M said that with the EV business ”at an inflection point and poised to grow exponentially, this realignment will help in providing the requisite resources as well as the direction to realising targeted growth”. M&M said growth in the Indian EV sector has picked up pace in the recent past and is only going to accelerate further.

The company is focussed on the entire EV ecosystem, including last-mile connectivity, fleet mobility, personal mobility and R&D which will fuel growth through technology and innovation, it added.