Mahindra snaps up Kinetic
Mahindra and Mahindra, famous for its utility vehicles and tractors, has fuelled up for the two-wheeler market. Confirming speculation about its planned foray into the two-wheeler space, the diversified business house announced its new plans as it bought the business assets of the struggling Pune-based Kinetic Motor (KMCL). Analysts, however, refused to buy the company’s bullishness and said it would be tough going for Mahindra in the fiercely competitive two-wheeler business.Mahindra, which reported a 16.6% drop in its Q1 net profits, said it would own 80% of a firm that would buy the assets of KMCL for Rs 110 crore while Kinetic would hold the rest. “The acquisition of business assets of KMCL will make us a fullrange player with a presence in almost every segment of the automobile industry,’’ said Anand Mahindra, vice-chairman and MD of Mahindra.