M & M Eyes Facilities In Southeast Asia

The slide in the south-east Asian markets could well prove to be a boon for Indian entrepreneurs with the will and the money to go shopping. Even before the crisis-hit economies can recover, many Indian companies are scouting for worthwhile buys.

The countrys largest tractor and utility vehicle manufacturer Mahindra & Mahindra is one of those. It is considering bidding for ancillary facilities in South Korea, Singapore and other south-east Asian countries, to build a base there and to create a supply base for its domestic facilities.

South Korea is an economy which is bound to swing back. The people there are industrious and the country has a great work culture. Hence it is the best time to establish a base there, now that the prices are reasonably cheap, top industry sources told Business Standard.

 

M&M is working on acquiring a South Korea-based suspension company, sources said. The company is also looking at ancillary manufacturers that can act as suppliers to its line of vehicles. It is also eyeing facilities manufacturing AC systems and suspensions.

The tractor major is also exploring possibilities of acquiring hotels and resorts in Thailand, which has a tremendous tourism potential, sources said. However, the group has not taken any firm decision as yet.

The crucial question is whether the prices have actually bottomed out. Because, if the prices were likely to drop further, one should adopt a wait and watch policy, the sources added.

Besides being the countrys largest tractor manufacturer, the Rs 3,607-crore company is also the leader in the utility vehicles segment.

The company manufactures the variants of its Commander models, besides the Armada.

M&M has recently launched the Voyager, through a three-way technical tie-up with Mitsubishi of Japan and Samcor of South Africa. The company proposes to launch the Armada Grand later this year, and plans a small utility vehicle to be called the Scorpio.

M&M is also a key player in the LCV segment. In the passenger car segment, the company is present through its 50:50 joint venture with Ford Motor Company of the United States.

The group is present in the hospitality industry through a joint venture which owns and manages four star properties under the Guestline Hotels banner.

In the tractors segment, the M&M enjoys a market share of around 26 per cent.