M&M eyes stake in electric car maker Reva?
26 May 2010
Mahindra and Mahindra (M&M) is reported to be planning to acquire the Indian promoters' stake in the world largest electric car maker, Reva Electric Car Company Pvt. Ltd, say media reports citing sources familiar with the development.
Reva, hailed as the pioneer in providing alternate fuel vehicle options, is a joint venture between India's Maini Group and California-based AEV LLC.
According to business television channel NDTV Profit, M&M would buy a 47-per cent stake owned by Indian investors in Reva.
Reva's valuation is pegged at about $100 million.
According to reports, Pawan Goenka, president of M&M's automotive and farm equipment sector, will hold a news conference to make an ''important strategic announcement'' today.
Currently, Reva is focussed on technology licensing tie-up, which they have with General Motors. It is also funded by Global Environment Fund and Draper Fisher Jurvetson. It is possible that the two foreign investors would exit in favour of M&M.
Reva has sold 3,500 cars since production began in 2001. The company expects Bangalore plant capacity to increase to 30,000 units.