Investment in the US market by Indian companies went hand in hand with mergers and acquisitions.
Mahindra to make vehicles in Detroit
Mumbai-headquartered Mahindra & Mahindra (M&M) is set to launch off-highway vehicles and SUVs in the US, becoming the first Indian manufacturer to produce vehicles in Detroit. M&M will begin production in Detroit from March to roll out an off-highway vehicle that will be sold across the US.
Simultaneously, M&M′s Korean subsidiary Ssangyong has started preliminary work to identify and launch SUVs in US. The company can consider three SUVs from Ssangyong′s line-up for the ambitious foray - Tivoli, Korando and Rexton. The company may initially begin through completely-built unit (CBU) import route, and thereafter manufacture them at Detroit.
Detroit has been the centre of operations for M&M in the US when it comes to the non-tractor business. It is already selling tractors there and has an assembly operation at Houston in Texas.
The off-highway vehicle, an adaptation of a current Mahindra vehicle, has been in the works for the last two-and-a half years. The company has spent roughly $230 million for the operations in Detroit, including an engineering centre which employs more than 250 people and a production setup that has a paint shop and an assembly facility.
The off-highway vehicle will be sold through the Powersports Dealer Network, which is a multi-brand retail channel for all-terrain vehicles, motorcycles, snowmobiles and watercrafts.
Ipca Labs acquires US drugmaker Pisgah
Mumbai-headquartered drugmaker Ipca Laboratories has fully acquired American pharmaceutical company Pisgah Labs for $9.65 million. The acquisition was made via Ipca Labs' US subsidiaries, Ipca Pharmaceutical Inc and Onyx Scientific Ltd.
Ipca Labs said the acquisition would help it establish a foothold in the US market in the fields of contract research, intermediates manufacturing and small-volume active pharmaceutical ingredients (API).
Ipca Labs said in a statement: “Pisgah Labs has been a chemistry solutions provider for over three decades and will continue to operate out of its North Carolina manufacturing facility under the Pisgah trade name.”
Ipca Labs has previously made several similarly-sized acquisitions, including in the US. In 2015, the company had acquired 19 per cent stake in Hyderabad-headquartered Krebs Biochemicals & Industries Ltd. The year before that, the firm had acquired a manufacturing plant in Indore from Alpa Labs for Rs 71.71 crore ($12 million at the time).
Founded more than six decades ago, Ipca Labs manufactures APIs and finished dosage forms. It has a significant presence in domestic branded formulations, global branded and generic formulations, and global APIs.
Ipca's investors include India-focused private equity firm Chrys Capital and Malaysian sovereign wealth fund Khazanah.
GM to ramp up component exports from India
American auto major General Motors is looking to ramp up component exports from India even as it continues to add new global markets for vehicle shipments from the country.
The company, which has stopped selling cars in the Indian market, recently started exporting Beat Notchback to Costa Rica.
Apart from this addition, it also plans on expanding the component exports in 2018. The company is focused on ensuring that it produces high-quality vehicles for export markets.
It currently exports body panels and engines to Vietnam and Cambodia.
The company is also maintaining a dedicated customer assistance centre to support its customers. It continues to operate parts procurement, warehousing and distribution to ensure smooth parts supply for Chevrolet vehicles in India.
Based on current planning the automaker is taking all measures to ensure availability of spare parts, generally in the market for at least 10 years.
Last year in May, General Motors announced that it would stop selling its vehicles in India. It now exports vehicles manufactured at its Talegaon plant in Maharashtra.
