Mumbai, Oct 9
Mahindra & Mahindra (M&M) on Thursday dismissed media reports claiming that the company is considering a demerger of its automotive and tractor businesses.
In a filing to stock exchanges, the automaker clarified that there are "no plans for a demerger of the Auto and Tractor businesses", adding that it continues to derive "much greater value from synergies by keeping these businesses within the M&M entity".
"In view of the above speculation, the Company on its own considers it necessary to clarify to the Stock Exchanges that there is no plan for a demerger of the Auto and Tractor businesses," the automaker said in the exchange filing.
Speculation about a potential restructuring has surfaced multiple times in recent years, with market watchers suggesting that a spin-off could allow sharper focus on growth businesses such as electric mobility.
But the company maintains that the integrated structure offers stronger operational and financial synergies.