Media reports indicate M&M’s interest in aquiring General Motor plant near PuneM&M - 1696 Change: -6.40 (-0.38 %)
News: As per media sources, M&M may look at aquiring General Motots' automobile manufacturing plant near Pune, which was ealier said to be acquired by Great Wall Motors China on a slump sale basis. The said plant has a capacity of ~1.5 lakh units per anuum.
View: If the deal goes through, we believe it will be a positive development for the company as this plant is close to M&M's exisitng manufacturing facility in Chakan (Pune). With minimal moderations and capex spend the company could ramp up production amdi record order backlog. Just for reference, Tata Motors acquired Ford’s Sanand plant for Rs 725 crore for a capacity of 3 lakh units expandable up to 4.2 lakh units per annum.