Close on the heels of the announcement by General Motors to acquire the car assembly unit of Daewoo Motors India Ltd, utility vehicle maker Mahindra and Mahindra on Thursday evinced interest in the engine and transmission facilities of DMIL.

"We are open to the acquisition of the engine and transmission units of DMIL," M&M managing director Anand Mahindra said in New Delhi.

The move follows yesterday's announcement of GMI to begin due diligence "immediately" for buying the car assembly unit of Daewoo.

The world's biggest carmaker had made an offer to the creditors of DMIL -- ICICI Bank, IDBI and Exim Bank -- to acquire the car assembly unit at the Surajpur (Uttar Pradesh) facility of DMIL.

Apart from M&M, Tata Motors is also believed to be interested in the engine and transmission units of the Surajpur plant.

Asked whether the acquisition would be an all-cash deal and General Motors would need the Foreign Investment Promotion Board's approval, GMI Vice-President P Balendran said, "We have only made an offer to the creditors of the Surajpur plant to buy the car assembly unit to which they have agreed. The due diligence process will begin immediately followed by a definite agreement. Only after the due diligence process is over, we can talk about the quantum of transaction, whether it is going to be an all cash deal or even the need for an FIPB approval."

Earlier, M&M had also expressed interest to set up an assembly unit in Indonesia to tap the burgeoning UV market there, as UV sales constitute 80 per cent of the total automobile sales in that country.

The acquisition of the engine and assembly units of DMIL, which has been lying idle since almost last two years, makes sense for an automaker like M&M as setting up such a unit afresh would be an expensive, time-consuming and cumbersome process, industry analysts said.

For its Indonesian assembly line, the company is contemplating assembly of fully built units.

Meanwhile, Balendran said following the due diligence, a definitive agreement would be signed between GM and the creditors of DMIL.

Purchasing the car assembly units of DMIL would be subject to approval of the respective boards of GM, the creditors, judicial and government authorities, Balendran said.

"Pursuant to such sale, General Motors would purchase 100 per cent of DMIL's car assembly assets," he added.