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M&M plans to expand business portfolio

Our Bureau

MUMBAI, July 11

AT its upcoming AGM of July 31, Mahindra & Mahindra Ltd (M&M) proposes to seek shareholders' approval for expanding its business portfolio to include initiatives under biotechnology and a range of transport-related services.

Currently, M&M is best-known as the country's leading producer of tractors and utility vehicles (UVs), businesses which give it a significant exposure to agriculture and rural markets. It also has interests in other business segments such as real estate, trading and infotech.

In its explanatory statement (part of the notice for the AGM) for amending the company's memorandum of association to enable fresh business forays -- planned mainly in biotechnology and transport-related services -- M&M says:

``The company proposes to undertake or support adaptive agricultural research to evolve and develop appropriate farm technology through application of biotechnology by evaluation of the suitability of crops, vegetables, spices and medicinal plants develo ped for saline and arid land and support and develop salt tolerant and drought resistant varieties of the same.

``The company also proposes to undertake activities relating to transportation, i.e., warehouse management, fleet management, vehicle servicing and maintenance and other activities related to supply chain management.''

When contacted, M&M's spokesman said that while the company has some existing interests in biotechnology, the new portfolio of business indicated under transport-related services is meant to grow further the company's nascent Transport Solutions Group (T SG).

In 2000-2001, TSG through its operations, fetched M&M an income of around Rs 100 crore. At present, these earnings are part of the automotive division's income.

TSG's growth rate could merit the business group being made into a separate division at a later stage, the spokesman said.