M&M plans to merge arms

new delhi: mahindra and mahindra seems all set to hit a homerun. as part of its massive restructuring exercise, m&m is now planning to amalgamate with itself some of its subsidiaries and also restructure its reserves. the m&m board will meet on tuesday to consider the amalgamation proposal, sources said. the board will review the entire list of m&m's subsidiaries and finalise the ones that have to be merged with the parent company, the sources said.while they pointed out that in the initial phase, m&m would be looking at amalgamating only the automotive subsidiaries, company officials, when contacted, refused to comment saying, the matter is under consideration. the utility vehicle maker, with brands like armada and bolero, has four separate automotive subsidiaries—mahindra auto specialities ltd, automart india, mahindra alternative technologies ltd (matl) and mahindra eco mobiles ltd. in addition, the group also has presence in farm equipment, trade and financial services, infrastructure development, it and auto component sectors through several other ventures and subsidiaries. the group is trying to streamline its activities and emerge leaner. this is on the lines of its recent efforts to cut costs and even rationalise workforce, the sources added. m&m had recorded a 54.2 per cent crash in bottomline during the 2000-01 fiscal and slipped into the red in the first half of this year to end with a net loss of rs 21.79 crore. m&m had forayed into the automotive business in 1954 through an agreement with willys overland corporation (now part of the daimlerchrysler group) to import and assemble the willys jeep for the indian market. over the years, the company diversified into producing farm equipments and even light commercial vehicles. it had set up the mahindra auto specialities subsidiary to launch the group's ambitious 'designercars' venture. under this venture, the firm is engaged in redesigning vehicles aimed at matching the customer's individual style and preference. automartindia, a business-to-consumer portal, was launched as a joint venture company to offer a wide range of new vehicles and a virtual marketplace to buy or sell used automobiles. matl was set up as an umbrella company to drive the group's initiatives in emerging sectors such as alternative energy sources and related technologies.