Chairman Keshub Mahindra told shareholders at the company's 52nd annual general meeting that it had already received an in- principle letter from the Gujarat government accepting its bid.

According to Mahindra, the multi-utility vehicle sector, which is the company's core business, has been adversely affected as the country continues to be in the grip of a recession. According to him, the sector has shown a negative growth of 19.6 per cent during the first four months of the year when compared to the same period last year.

"However, against an industry drop of nearly 20 per cent, our own drop is only 8 per cent and our market share has gone up from 50.4 per cent last year to 56.5 per cent this year," said Mahindra.

Hetold the shareholders that during the period April 1, 1998 to 19 August, 1998, the company produced 24,585 vehicles and sold 22,749 vehicles as compared to 27,745 produced and 24,792 sold during the corresponding period last year. In the case of tractors, M&M, during the same period, produced 19,806 units and sold 23,541 as compared to 26,873 produced and 25,202 sold during the same period last year.