Mumbai: Automobile major Mahindra & Mahindra on Tuesday said that it will form a joint venture company in Sri Lanka with Ideal Motors.
According to the company, its proposed investment is subject to the RBI’s approvals.
“The company today has agreed to enter into a joint venture agreement with Ideal Motors (Sri Lanka) (“Ideal”) to form a joint venture company in Sri Lanka (“NewCo”) and subscribe or acquire up to 35 per cent of the share capital of NewCo with the remaining proposed to be held by Ideal or any of its affiliates,” M&M said in a regulatory filing to the BSE.
“The proposed investment is subject to the requisite RBI approvals.”
The filing said that M&M’s investment in the new company will not be more than 25 crore Sri Lankan rupees. The JVC will be formed for the purpose of assembly of vehicles in Sri Lanka.