May 16th 2024.
In an exciting development, Indian automaker Mahindra & Mahindra has announced a whopping investment of Rs 12,000 crore in its electric vehicle unit over the next three years. This significant move was reported in a stock exchange filing made by the company on Thursday. The investment aims to support the company's EV journey and propel it towards a more sustainable and eco-friendly future.
The filing further revealed that the investment will be directed towards Mahindra Electric Automobile Limited, a subsidiary of M&M, which has been at the forefront of the company's electric vehicle initiatives. The company also shared that it plans to generate sufficient operating cash to cover all its capital investment needs and will not be seeking additional capital.
In addition to this exciting news, M&M also announced an extended partnership with British International Investments (BII). The two companies have agreed to extend the timeframe for the final tranche of BII's planned investment of Rs 725 crore. So far, BII has invested Rs 1,200 crore, while another Singapore-based investment firm, Temasek, has contributed Rs 300 crore to MEAL. As per the stock filing, Temasek has agreed to invest the remaining Rs 900 crore as per the agreed timelines.
For those unaware, Mahindra Electric Automobile Limited was incorporated on October 25, 2022, and has been making steady progress in the electric vehicle industry. As per the company's financial report, MEAL's total income for the year ended March 31, 2024, was Rs 56.96 crore, while its net worth stood at an impressive Rs 3,207.14 crore. However, the company also informed that its revenue from operations for the same period was nil.
This major investment and extended partnership highlight Mahindra & Mahindra's commitment towards promoting and developing sustainable transportation solutions. With these efforts, the company hopes to pave the way for a greener and more environmentally conscious future in the automotive industry.
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