Mahindra & Mahindra and Kinetic Motors finally have reached into joint venture. The joint venture has come after arduous talks continued for quite some time. Earlier, M&M had wanted to buy out Kinetic but things did turn out in its favor. In new JV, M&M and Kinetic Motors will have 80:20 shares respectively.

 

Till now, M&M has been involved in tractor and jeep manufacturing, lately it has shown interest to entering into two-wheeler production, and with this new deal the path is clear for it. However, what would be the business scenario has yet to be seen, as market of two-wheeler production is already full of many players.

 

The deal for Kinetic will bring good fortune as it has been running on loses for quite sometime, and badly needed finances to get over loses. The company suffered net loss of Rs 18 crore in the fourth quarter ended March 31, 2008. However, Kinetic will offer the JV its expertise over two-wheeler production.