Truck Manufacturers | Bus Manufacturers

The Company MAHINDRA INTERNATIONAL LTD. (MINT) is a subsidiary of the reputed US $ 6 billion MAHINDRA Group.

Mahindra International Limited is a 51:49 Joint Venture between Mahindra & Mahindra Ltd. (M&M) and International Truck & Engines Corporation of USA (ITEC). M&M holds 51% stake in the Joint Venture Company.

INTERNATIONAL TRUCK AND ENGINE CORPORATION (ITEC) is a company incorporated in USA. Navistar International Corporation (NYSE: NAV) is the parent company of International Truck and Engine Corporation. Navistar through its affiliates produces International? brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. ITEC has been an industry leader in the North American markets in the sale of medium and heavy trucks (8 Tonne GVW and above) and buses for 19 consecutive years with sales of approximately 100,000 vehicles per year. ITEC is also a world-wide leader in diesel engines in the 160-325 HP range, with production of over 400,000 engines per year. It is the largest Truck retail organisation in North America with over 1000 dealer locations.

MINT has three focus areas

•	Manufacturing of trucks and buses in India for sale in India and export markets.
•	Enabling International to use India as a significant supply base for sourcing components and materials
•	Providing engineering services for the design and development of truck and bus products for International globally and the JV.

The JV will benefit both M&M and ITEC.

M&M will gain by

a)	Becoming a full line commercial vehicle company in India
>b)	Becoming a full service provider of engineering services and
c)	Establishing contract sourcing business

While ITEC will gain by way of

a)	Establishing a commercial vehicle business in India that includes trucks, buses and service parts, and related engineering, purchasing, manufacturing and distribution services;
b)	Leveraging India’s low-cost capabilities to source engineering services and components for International’s operations; and
c)	Using India as a production base for low cost vehicles for distribution

The JV will develop and market India specific products and the production is likely to commence in calendar year 2009. The Sourcing and Engineering services business, planned to be done by the JV, will also be ramped up to material scale.

In the initial stage, MINT plans to manufacture and market LCVs by using manufacturing facilities and wide distribution network of M&M. The acquired LCV business consists of successful product range of Trucks and Buses within GVW 3.5 Tons to 7.5 Tons. The products of MINT are currently sold under the trademark of Loadking and Tourister.

Performance

During the 5 month period ended March 31, 2006 the Company sold 2008 vehicles and achieved Gross Turnover of approx. Rs. 893 million. For the year ended March 2007 the Company registered volumes of 8652 representing a growth of 28 % over F2006 (MINT + M&M). During the year the Company gave a face lift to its existing range of Tourister buses, introduced a 32 seater Bus as well as a CRDe Bus, a first in the industry. It gained 4% market share in F-2007 thereby improving its Market share from 16% to 20%. For the Financial Year ended March 2007 the company recorded Gross Turnover of Rs. 4172 million.

Performance

Over the next few years with concentrated effort from the dedicated marketing work force, duly supported by value engineering and development efforts from the in-house Research and Development team, the Company plans to be a full scale player in the Commercial Vehicle Industry with a contemporary product range from 3.5T to 49T and ramp up the volumes to an considerable scale. The Company plans to make huge investment in facilities at Chakan Plant with a project investment of over Rs 5000 million that will be funded by an appropriate mix of debt and equity. Both M&M and ITEC will continue to hold equity / contribute to it in similar proportion of 51:49. A slew of new products will be launched in the near future.

Besides the Commercial Vehicles stream both Engineering Services business as well as Sourcing Business are expected to contribute significantly to the financials of the Company.