Indian automaker Mahindra and Mahindra has agreed to set up a production plant in Sri Lanka which would cater to the markets in Sri Lanka, Pakistan and Bangladesh if its Sri Lankan partner and authorized dealer, Ideal Motors (Pvt) Ltd achieves a target of 24,000 vehicle sales per annum.
This assurance was given by Anand Mahindra, Vice Chairman and Managing Director of the group to Ideal Group Chairman Nalin Welgama.
The latter told Business Times that the company is now selling 1000 units per month and it would surpass 12,000 vehicle sales this year. He expressed the hope that Ideal Motors can achieve the target set by Mahindra and Mahindra next year.
Mahindra and Mahindra already operates two production plants outside the Indian borders, in Brazil and Egypt. The company recently invested US$ 800 million in another new plant in Chaka, India. Mr Welgama disclosed that his group profit was expected to surpass Rs. 12 billion this year, recording a phenomenal growth.
A new set of vehicles from Mahindra and Mahindra to Sri Lanka is expected to be launched by the end of the year. The company also plans to import 2-wheelers and heavy duty trucks this year.
Outlining the company’s expansion plans, Mr.Welgama said that they have already purchased a 50 perch block of land at Union Place Colombo where the former McCallum Breweries (Ceylon) Ltd head office was located at a cost of Rs. 275 million to build their headquarters and an ultra modern show room for Mahindra vehicles. Another show room will be opened at Wellawatte, he said. With the country’s economy booming vehicles sales are increased and the demand for new Mahindra vehicles is rising, he added.
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