Mahindra & Mahindra Classic Legends Forms JV with Tube Investments to Use BSA Marks

Tube Investments of India Ltd. (TIIL) has a strong presence in the Indian market and is known for its high-quality products and innovative technology. The company’s diverse product portfolio caters to a wide range of industries, including automotive, industrial, and fitness. With a focus on sustainability and customer satisfaction, TIIL continues to expand its offerings and maintain its position as a leading manufacturer in India. The establishment of this joint venture company will allow CLPL and TIIL to leverage each other’s strengths and expertise in the motorcycle industry. By combining resources and sharing risks, both companies can maximize their potential for success in the Indian market. The use of the BSA marks will also help to enhance the brand value and reputation of the motorcycles, parts, and accessories that CLPL will produce. The execution of the Joint Venture Agreement and Master Trademark Licensing Agreement will provide a clear framework for the operation of the JVC, outlining each party’s rights, responsibilities, and obligations. This will help to ensure that the partnership is structured in a way that benefits both CLPL and TIIL while also protecting their respective interests.

CLPL and TILL 50% partnership:

CLPL and TIIL have decided to establish a joint venture company (JVC) with a 50:50 shareholding ratio to utilize the BSA marks in India for motorcycles, their parts, and accessories manufactured and sold by CLPL. This action aligns with the terms and conditions of the Joint Venture Agreement and the Master Trademark Licensing Agreement, as disclosed in a stock exchange filing by Mahindra & Mahindra Ltd.

The business also disclosed that CLPL and TIIL will each invest Rs. 50,000 in JVC equity shares at a face value of Rs. 10 per equity share, and they will own 50% of JVC’s equity share capital. Intellectual property, reserved matters, capital structure, board of directors, and management of the JVC are among the important terms of the agreement between TIIL and CLPL. The company stated that TIIL would be able to nominate two directors, and CLPL would be able to nominate two directors out of the four directors that make up the Board of JVC.

Stock price of M&M: 

Mahindra and Mahindra Ltd. (M&M) stock price is today down more than 3% in the intraday segment and running at Rs. 2,650.40 per share.

Conclusion: CLPL, TIIL, and M&M are under one partnership; significant changes are expected in their respective industries as they have vast experience in their sectors. This venture will lead to the next level of expansion in India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.