After buy up of the business assets of ailing Kinetic Motors in July, the M&M wants to list  the new venture in stock markets to raise funds, and unlock shareholders’ money. Earlier, M&M paid Rs 110 crore for an 80% stake in the unlisted venture, while Kinetic retained the rest.

 

According to Anoop Mathur, President, Mahindra Kinetic Motorcycles & Scooters (MKMS) there are fresh investments for a new two-wheeler factory from M&M side to expand beyond Kinetic's current 500,000 annual capacity. On listing issue he said the funds would be used for growth plans.

 

Further he said that the company could be looking at logistical advantages through a new location or it could also be to help them service some markets better. He stressed that M&M is going to evaluate its plan next year, and the company will certainly go for listing when it is profitable.

 

On expansion plan Mr Mathur said the company would start with the existing capacity of the Kinetic. As of now, Kinetic Motor has a plant at Pithampur in Madhya Pradesh and produces 500,000 two-wheelers annually. However, he said that he has to take a decision on new factory and volume.