You are here: Home » Economy & Policy » News
Business Standard

New projects needed for investments to flow in India: Anand Mahindra

Says there is some revival in construction equipment demand and in truck demand but ground needs to be broken on new projects

Press Trust of India  |  Seoul 

Anand Mahindra

The Indian economy is beginning to show signs of recovery but for investments to start flowing, new projects will have to be started, according to Mahindra Group Chairman and Managing Director Anand Mahindra.

"I hope it is unfolding and we are confident and it has been... I definitely think that we are seeing green shoots," Mahindra told PTI here when asked where he saw the Indian economy was going at the moment.

Taking the demand for construction equipment and trucks as a barometer, he said when it picks up then one could say investments were happening.

"As you know that we have a construction equipment division also, that's our first sign. The moment we know that construction equipment orders are rising, you know that it's not just intent that is being voiced but it is also real investments happening in the market," Mahindra said.

Asked if investments were happening, he said: "There is some revival in both construction equipment demand and as well as in truck demand but ground needs to be broken on new projects."

Mahindra, who was here for the launch a compact SUV Tivoli by the group's South Korean arm Ssangyong Motor Co (SYMC), lauded the Modi government for the reforms and for pushing manufacturing in India.

"We hope that defence would be revived and emphasis on 'Make in India' should be something which give fillip to the group like us," he said, adding the group could consider forming a consortium, perhaps with erstwhile partner BAE to participate in India's defence projects.

On the future of SYMC, Mahindra said a financial turnaround and brand restoration will only make the journey on comeback trail complete for the South Korean subsidiary.

"We have invested shareholder's money of Mahindra & Mahindra (M&M). So, I cannot claim that happiness is complete without any financial turnaround," he said.

Secondly, the brand has to be restored to where it was, he added.

"Because when you leave behind a legacy as a business person, you leave two things - financial results and brand that was far more enduring and if I was an inheritor, I would rather get a brand than asset. I can do whatever with the brand. Asset is specific and not necessary enduring," Mahindra said.

Highlighting the importance of the two factors, he said: "It's really to ensure the financial turnaround and ensure the brand restoration. Ssangyong used to be very strong brand and known for its quality. It was the highest quality producer here (in South Korea). I think, it has to get back that mandate.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 14 2015. 15:34 IST