Anand Mahindra’s strange reluctance to make money
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Editor's note: This is the third edition of Things Change, The Morning Context’s weekly newsletter. Things Change will land in your inbox every Thursday with sharp, original insight on subjects making the news, but which must be understood better. It will be written by the best writers and subject experts, both in-house and external. Automobiles are where the action is in India. I earlier wrote about how the world’s largest two-wheeler market collapsed. This week’s Things Change is on the recently concluded joint venture between Mahindra & Mahindra and Ford. Transaction summary first: After 24 years of being in India, Ford doesn’t want to be on its own anymore. As part of the new organization structure, M&M will acquire 51% of Ford’s automotive business. Ford will hold the remaining 49%. They get equal representation on the board. M&M will oversee management with Ford’s approval. The joint venture entity will be called Ardour Automotive.M&M will invest Rs 657 crore in Ardour. Ford will invest Rs 632 crore. Debt of Rs 636 crore will be transferred to the new company.Ardour will own Ford’s two …
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