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Mahindra & Mahindra (M&M) on Friday said that it's board of directors has granted an in-principle approval for the merger of its subsidiary Mahindra Electric Mobility Ltd into the company.

In a statement, M&M said that the consolidation would categorise EV operations in two focused verticals -- 'Last Mile Mobility' (LMM) and Electric Vehicle Tech Centre. It added that simplifying the structure will drive improvements through innovation, execution excellence, efficiencies and economies of scale.

As per the company, the move would also unlock shareholder value.

It said that with the electric vehicle business at an inflection point and poised to grow exponentially, this realignment will help in providing the requisite resources as well as the direction to realising targeted growth.

Rajesh Jejurikar, Executive Director, Mahindra & Mahindra said: "Electric vehicles will be the future of the automotive business. To be future ready, we believe that EVs should be part of the core and mainstream business."

Noting that this intent to consolidate is a part of the company's EV strategy which aims to electrify various segments that will popularise e-mobility, he said: "We will continue to draw upon our deep understanding of customer needs to bring in exciting new products in the EV space."