Indian automobile manufacturer Mahidra and Mahindra is looking at the possibilities of opening up a production plant in Sri Lanka which would cater to the markets in Sri Lanka, Pakistan and Bangladesh.
The Company’s Sri Lanka agent has estimated that sales in the country would reach 10,000 units this year, a phenomenal 700 percent growth from the previous year.
Mahindra and Mahindra Vice Chairman Anand Mahindra said that Sri Lanka is the largest market for the company outside India and would surpass 10,000 vehicle sales this year achieving a 700 percent growth rate.
He said that the country terrorized by the civil conflict which ended in May 2009 has preformed “substantially beyond expectations”.
The authorized dealer for Sri Lanka Ideal Group of companies has recorded aggressive growth with more than 10,000 Mahindra vehicles sold.
Ideal Group Chairman Nalin Welgama told The Island Financial Review that the group profit was expected to surpass Rs. 12 billion this year, recording a phenomenal growth.
According to him the Mahindra Group has shown keen interest in opening a new plant in Sri Lanka to cater the domestic market as well as the Pakistani and Bangladesh market with it.
Ideal Group expects to record a sale of 12,500 vehicles for the 2011/2012 fiscal year which would open the doors for Mahindra to open its plant in Sri Lanka, he said.
Welgama said Ideal is approaching a 20,000 vehicle sale goal within the next few years and according to the Mahindra Group, if the country performs to that level it would open a manufacturing plant in Sri Lank.
Mahindra and Mahindra already operates two plats outside the boarders of India located in Brazil and Egypt. It also recently invested US$ 800 million for a plant in Chaka, India for a fully fledged manufacturing plant.
Acording to Welgama, the Sri Lankan Market has responded very well for Mahindra and Mahindra vehicles ranging from Small commercial vehicles to utility vehicles.
New vehicles for Lanka…
A new set of vehicles from Mahindra and Mahindra to Sri Lanka is expected to be launched starting end this year.
Ideal Motors Chairman Nalin Welgama told the Island Financial Review that the group was planning to import the 2 wheelers and heavy duty trucks to Sri Lanka starting from the end this year.
According to him the range of two wheelers would be launched end this year while the heavy duty trucks are expected to be launched in the beginning of next year.
He said the Sri Lankan market has performed well since the introduction of the Mahindra and Mahindra range of vehicles creating a positive image.
“The people’s confidence in Mahindra has been improving for the ruggedness of the vehicle as well as the value for money.”
Mahindra being the only manufacturing company to produce a range of products spanning from two wheelers to heavy duty trucks has much scope in Sri Lanka.
With the country’s economy booming the vehicles sales have increased and the request for new Mahindra products are increasing.
Already Ideal Group has formed its two wheeler unit under the name of Ideal 2 Wheelers.
Welgama said that the two wheel market in Sri Lanka has much potential for Mahindra group while it has space for another competitive player.
Mahindra and Mahindra Vice Chairman Anand Mahindra said that the company is focusing to enter new markets and to exploit the existing markets further.
The company is focusing to become a world renowned brand name whole pointing out the potential in Sri Lanka was enormous for the company as a single country.
Courtesy: The Island