The board of Mahindra & Mahindra (M&M) on Friday granted an in-principle approval for consolidation of Mahindra Electric Mobility Ltd, a step-down subsidiary, into the company.
The consolidation would categorise the company's electric vehicle (EV) operations in two focused verticals -- Last Mile Mobility (LMM) and Electric Vehicle Tech Centre, M&M said in a release.
"With the electric vehicles business at an inflection point and poised to grow exponentially, this realignment will help in providing the requisite resources as well as the direction to realizing targeted growth," the company said.
M&M said simplifying the structure will drive improvements through innovation, execution excellence, efficiencies and economies of scale. Besides, it will also unlock shareholder value.
While the realignment will provide the LMM vertical with complete ownership of value chain for last mile mobility solutions to drive growth and execution, it will provide the EV Tech Centre with the depth of resources and synergy with M&M's larger ecosystem of product development capability whilst exploring partnerships and alliances, it said.
"Electric vehicles will be the future of automotive business. To be future ready, we believe that the EVs should be part of the core and mainstream business. This intent to consolidate is a part of our EV strategy which aims to electrify various segments that will popularise e-mobility," M&M Executive Director Rajesh Jejurikar said.