Mahindra LMM Co

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Mahindra & Mahindra Limited (“M&M” or “Sponsor”) is part of the Mahindra Group (“the Group”) of Companies (https://www.mahindra.com/about-mahindra-company).The Group is a US$19.7 billion turnover corporation based in India, employing about 260,000+ workers with a footprint in 100+ countries and across 20+ industries. IFC has a long-standing relationship with the Group since 1964. M&M has been one of the pioneers of Electric Vehicles (EV) and its technology in India starting its EV journey more than two decades ago. Today EV is an important part of the M&M's business with a range of passenger and commercial vehicles introduced over the years. IFC proposes an equity investment of up to INR6 billion (~US$73 million) in a subsidiary of M&M (“Mahindra LMM” or “the Company”). The Company will produce electric 3-wheeler (e3W), e4W cargo portfolio and the existing internal combustion engine (ICE) based 3W and 4W products. IFC's proceeds will be utilized for developing and manufacturing the EV portfolio (“the Project”). The capital deployment will include product development capex, capital expenditure for EV production capacities (development of the brownfield EV manufacturing plant in India), and research and development (R&D) facility. The brownfield EV plant has been proposed within the existing, 332-acre Zaheerabad Plant, in the State of Telengana in India (Plant co-ordinates: 17°41'27.4N 77°34'39.2E). The Zaheerabad campus currently houses manufacturing plants of M&M's Automotive Division (AD) and Farm Division (FD), which manufactures both EVs and non-EV vehicles. Currently, LMM Division under M&M's Automotive Division (AD), has three production facilities in India (Zaheerabad, Bengaluru and Haridwar) that manufacture EVs along with other ICE vehicles. These three plants will continue to manufacture & deliver EVs under a manufacturing agreement to be entered with the new Mahindra LMM company. M&M has established dedicated network of EV dealers and service touch points across India to support company's operations.As stated above, IFC has had successful partnerships with number of M&M Group companies across multiple sectors including financial services, real estate, and agriculture. Currently, IFC has the following active investments with the Group:In October 2017, IFC invested in three special purpose vehicles (SPVs) promoted by Mahindra Life space Developers Limited (Project ID 38850) and the same has been disclosed at: https://disclosures.ifc.org/project-detail/ESRS/38850/mahindra-lifeIn July 2018, IFC invested in Mahindra & Mahindra Financial Services Limited (Project ID 38977) and the same has been disclosed at: https://disclosures.ifc.org/project-detail/SII/38977/dcm-mmfsl-ncdIn August 2018, IFC invested in Mahindra Rural Housing Finance Limited (Project ID 38976) and the same has been disclosed at: https://disclosures.ifc.org/project-detail/SII/38976/dcm-mrhfl-ncdIn October 2018, IFC invested in Mahindra Renewables (Project ID 40646) and the same has been disclosed at: https://disclosures.ifc.org/project-detail/ESRS/40646/rewa-mahindra. In November 2019, IFC invested in Mahindra & Mahindra Financial Services Limited (Project ID 42373) and the same has been disclosed at: https://disclosures.ifc.org/project-detail/SII/42373/dcm-mmfsl-ii Environmental and Social (E&S) performance of all the above listed IFC's investments has been satisfactory.