New Delhi: Mahindra & Mahindra (M&M) on Saturday has approved the demerger of Mahindra Two Wheelers Ltd's two-wheeler undertaking announced company's board. The undertaking manufactures and sells two wheelers.
In its regulatory filing company said, "The company's board approved a scheme of arrangement...Which envisages demerger of the two wheeler undertaking of MTWL and transfer and vesting thereof as a going concern into the company.”
"The proposed demerger in line with the strategy of focusing on niche premium two-wheeler segment would enable the two-wheeler undertaking to benefit from the company's design and development and sourcing capabilities," it added.
The decision of demerger has been taken to focus on the spare business, the company said.
With PTI Inputs