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Mahindras eye Punjab Tractors stake

Mahindra and Mahindra is interested in acquiring a stake in Puinjab Tractors Ltd, reports Deepak Joshi.

india Updated: Feb 07, 2007 20:38 IST

Automobile major Mahindra and Mahindra is interested in acquiring a stake in Puinjab Tractors Ltd (PTL). The Burman family that runs the Dabur group holds 14.5 per cent stake in the venture and is keen on divesting its stakes.

Actis, a private equity investor in emerging markets, holds 29 per cent in PTL. Life Insurance Corporation, General Insurance Corporation and IFCI collectively own 30.75 per cent stake in the enterprise.

The Burmans are said to be interested in selling their stake to the buyer of Actis's stake in Punjab Tractors

"We had submitted a non-binding bid on the fifth of February to buy the stakes of the Burmans and Actis in Punjab Tractors," M&M chairman Keshub Mahindra told reporters on the sidelines of a function to flag off Asia's 100 per cent bio-diesel sports utility vehicle Scorpio and the Mahindra tractor.

M&M has spearheaded two projects for its bio-diesel programme, one in collaboration with the Indian Institute of Technology, Kanpur, and the other with Indian Oil Corporation's R&D centre and Lubrizol.

Mahindra said M&M has been exploring the option of alternate fuels for the six-seven years. The launch of a 100 per cent bio-diesel run Scorpio is a result of the involvement of academia with the industry, he said.

The Scorpio with indigenously developed common rail direct injection engine technology is the first Asian vehicle in its class to run on 100 per cent bio-diesel. The tractor is run on 5 per cent bio-diesel.

Speaking on the occasion, Petroleum Minister Murli Deora said, "The Mahindra vehicles are a landmark in the government's sustainable energy goals. Such innovative use of technology will serve as a benchmark in India's push for a sustained and more responsible use of valuable energy resources, will help energy security and national security."

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First Published: Feb 07, 2007 20:38 IST