According to M&M's executive director & president (automotive sector) Alan E Durante, "The company has received an order of 8,000 engines per annum for the next five years worth Rs 40 crore annually from Karson for supplying diesel engines - XD-3p - which are used in Bolero. These engines will be used by Karson for its J-9 vehicles. M&M is also in negotiations for major MUV contacts with a South African and South American player."

Addressing the annual general meeting M&M's chairman Keshub Mahindra said, "M&M will add value to its subsidiaries before it makes them public. The company will however not go in for a Nasdaq listing."

"The `Scorpio' will be launched by the second half of next year and will cost around Rs 600 crore. The company will increase its dealer network so as to make the spare parts available in rural markets within a periphery of 20 km," said Mahindra.

The Scorpio will spearhead the company's entry into the manufacture of the next generation of vehicles that will eventually become the platform for all of its MUVs.

Says M&M's managing director Anand G Mahindra, "Mahindra British Telecom will go public by the end of the year with a 10 per cent initial offering. Another 5 per cent will be offered to the employees as ESOPs. The company has also selected a lead banker for the issue which will be announced later." On the previous year results, Keshub Mahindra said, "It was not an easy year to operate. However, the company fared better than the average industry. The opening of WT O will bring in more competition to the sector, but the company is ready to tackle this competition."

M&M bags Rs 200 Q1 net falls 33.15%
Mahindra & Mahindra (M&M) has reported a fall in net profit of 33.15 per cent for the first quarter ended June 30,2000 to Rs 34.27 crore compared to Rs 51.26 crore for the corresponding period in the previous year.

The net sales of the company for the period fell to Rs 848.49 crore (Rs 872.67 crore). The profit before taxes was down by 30.96 per cent to Rs 46.27 crore (Rs 67.01 crore).

According to M&M's chairman, Keshub Mahindra, "The speculation about drought and increase in sales tax has created a dampening effect on the market demand. However, the monsoon being now normal, demand should improve though there will not be any profound change in the near future." In the utility vehicle segment, M&M reported a fall in sales by 13 per cent to 13,624 vehicles (15,581 vehicles) while in the LCVs market sales were up by 30 per cent to 1,904 vehicles (1,464 vehicles). Tractor sales however showed a marginal increase to 19,792 units (19,661 units).