Mahindra and Mahindra (M&M), one of country’s leading auto brands, has inked a joint venture pact with its existing partner, TMI Pacific, a local Australian Importer and distributor of vehicles.

According to the sources, the proposed pact will lead to the establishment of a new conglomerate called Mahindra Automotive Australia, which will continue the selling and promotion of Mahindra vehicles in Australia.

In the new joint venture, Mahindra will hold 80 percent stake while the remaining would be retain by TMI Pacific.

However, the company did not disclose the financial arrangements to be made in the joint venture.

While commenting on the joint venture, Mr. Michael Tynan, Chairman of TMI Pacific stated, “Over the past 18 months TMI pacific has successfully laid the foundation and carved a niche in the Australian landscape for the Mahindra range of Utility vehicles. Working alongside Mahindra we have built brand presence and believe that the stake that Mahindra is putting in Australian soil and the commitment they are showing to becoming even more strongly involved in our market is a treatment to their belief in it. This affirmative action will provide even further confidence to the dealer network and to prospective customers. We welcome this positive move forward.”

The sources further revealed that despite economic crunch globally, Mahindra continues to grow robustly. In the second quarter ending September 30, the company’s net profit grew by 9.3 percent and gross revenues by 14 percent.

Stock of Mahindra and Mahindra settled well at Rs 379, up 1.01 percent on National Stock Exchange (NSE). The total volume of shares traded at NSE was 320, 834.