Mahindra rules out demerge of auto and tractor businesses

New Delhi: DHNS: The country’s leading farm equipment and SUV manufacturer Mahindra Group on Thursday ruled out any plans of demerging its auto and tractor businesses saying the company sees “much greater value from synergies by keeping” them together.

It was reported in a section of the media that Mahindra Group was evaluating major restructuring of its businesses by separating passenger vehicles, tractors and trucks into separate independent entities.

“In view of the above speculation, the Company on its own considers it necessary to clarify to the Stock Exchanges that there is no plan for a demerger of the Auto and Tractor businesses,” Mahindra & Mahindra said in a regulatory filing to the stock exchanges.

“The Company has clarified this in the past and maintains that it sees much greater value from synergies by keeping these businesses within the M&M entity,” it said.

Mahindra Group is the world’s largest producer of tractors by volume. Recently, Mahindra & Mahindra overtook Hyundai to become the second largest car manufacturer in the country. The company enjoys a leadership position in the sports utility vehicle (SUV) category.