CIE Automotive's Indian Arm, Mahindra CIE Automotive Limited ("MCIE") to acquire Bill Forge Private Limited ("BFPL")

September 12, 2016:- MCIE Board of Directors today resolved to acquire 100% of equity shares of BFPL for INR 13,312mn.

Further MCIE Board resolved to issue 54.49 mn shares to CIE Automotive SA ("CIE") and BFPL shareholders, including the Haridass Family and Kedaara Capital at INR 200/share.

Founded in 1982, BFPL is a market-leading precision forging company based in Bangalore, India with 6 manufacturing facilities in India across Bangalore, Coimbatore and Haridwar and an upcoming plant in Celaya, Mexico. Kedaara Capital invested in BFPL in 2015 to support the growth of the company.

BFPL is a crucial supplier to a number of domestic and global two-wheeler and passenger car OEMs and Tier 1 auto component companies. It manufactures a variety of cold, warm, hot forged and machined components primarily for steering, transmission and wheel-related assemblies.

This acquisition increases MCIE's operations in the high growth Asian markets and reinforces CIE group's / MCIE's position as a leading global forgings player. BFPL's complementary product and customer mix leads to a significant diversification in the business portfolio of MCIE India.

According to JesusMaria Herrera, CEO of CIE Automotive, "We welcome BFPL and Anil Haridass and team to the CIE family. We are impressed with the high growth and profitable business built by them. We believe that their integration with MCIE, will provide further opportunities for growth for both MCIE and BFPL."

Hemant Luthra, Chairman of MCIE, says "BFPL has a unique business combining complex products and brings many new customers to MCIE's current portfolio. The global alliance between CIE and M&M created excellent value for all stakeholders. This partnership bears the same hallmark of a mutual faith in each other and a common ambition based on excellent team chemistry. It reinforces CIE’s commitment to India and the region and is a big step forward in creating both a global leader in forgings and a leader among Asian auto components firms."

Anil Haridass, Managing Director, BFPL says, "We see a strong cultural and value fit between the CIE group and our company. We believe that the combination with MCIE will be beneficial for all stakeholders - customers, suppliers and employees"

Manish Kejriwal and Sunish Sharma,of Kedaara Capital Advisors LLP, noted, "The combination of BFPL with MCIE reaffirms the attractive opportunity that exists in the Indian auto component sector. We have enthusiastically supported the dramatic growth story at BFPL, and are now very happy to partner and invest with the CIE team."

About Mahindra CIE

Mahindra CIE Automotive Limited (MCIE) is a large diversified auto components supplier formed as a result of partnership between Mahindra Group ("M&M") of India and CIE Automotive S. A of Spain ("CIE"). As a part of this partnership, CIE took a majority stake in the automotive component companies of the Mahindra Group and which were part of the Systech sector of the Mahindra Group.

MCIE has presence across many processes/ product lines, geographies and customers. Its key customers are major Indian and European automotive OEMs. MCIE is a multi-technology company which has 6 distinct processes viz. forgings, castings, stampings, gears, magnetic products and composites. It has plants in India, Germany, Spain, Italy, UK and Lithuania.

MCIE is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) but was known earlier as Mahindra Forging Limited.

Media contact information:

Shubhada Dharwadkar,
Group Communications,
Mahindra & Mahindra Ltd.,
Tel: 022-24901441,
dharwadkar.shubhada@mahindra.com

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