Mumbai-based Mahindra Group today announced its foray into power boat and catamaran manufacturing through a joint venture with city-based company Ocean Blue.
The 51:49 joint venture company, Mahindra Ocean Blue, in which the Rs 7,300-crore Mahindra & Mahindra (M&M) will hold majority stake, will make 20-40 ft-long custom-designed fibreglass power boats built for social and recreational purposes.
The new company will tap M&M’s existing automobile and auto parts production bases, including Mahindra Composites, spread mainly across Maharashtra for making such boats. The final assembly of boats will, however, take place in Goa.
The company refused to divulge details regarding investment in the venture as well as the final market price of such boats. Prices will be announced on Friday during a boat show to be held in Mumbai.
Zhooben Bhiwandiwala, executive V-P, M&M, said, “We are targeting to sell at least 300-400 boats in the next three years. Our sales will come from corporate houses, institutions and a few high-end retail customers. Our portfolio would potentially expand to include cabin cruisers to be introduced at a later stage.”
The boats made by the company will be branded as Mahindra Odyssea. According the company, a 22-ft (6.34 meters) boat, which can carry a maximum of 7 persons and strapped with a 175 HP engine, will have a maximum speed of 42 knots (77 km/hr).
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The JV company will import the engines from Canada-based engine supplier Evinrude, a Bombardier-owned company. Cost of such engines will account for 20-40 per cent of the total cost of a Mahindra boat.
According to Bhiwandiwala, a 33-ft Larson leisure speed boat costs about Rs 60-70 lakhs in India. An estimated 200-300 of such leisure boats were imported to India last year. As against an import duty of almost 110 per cent laid on cars, boats attract import duties of 30 per cent in India.