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Mumbai: Mahindra & Mahindra Ltd. (M&M) has today signed an agreement with Engines Engineering S.p.A., agreeing to acquire 100% stake in Engines Engineering S.r.l, the new legal entity which will be formed by transferring the business of Engines Engineering S.p.A. The transaction is subject to receipt of necessary approvals.
Mr. Hemant Luthra, President, Systech, said 'Continuing its vision to create ‘an art to part’ entity, M&M through Systech has been looking at acquisition of a reputed design house. Systech’s engineering services business has grown by a factor of ten in the last four years and continues to grow at the same pace as it provides its unique domain knowledge in the field of Automotive and Aerospace design.
He further said, 'Demand for offshoring of engineering services has been growing rapidly. Acquiring a design house like Engines Engineering provides us the perfect vehicle to penetrate into markets of Europe, China & Russia. It also gives us the impetus to scale up the business, have access to market & technology along with management skills. Mahindra Engineering Services in India has over 1000 engineers in India which provide high end cost effective solutions and can support the offshore needs and technical skills of Engines Engineering'.
Mr. Alberto Strazzari, Chairman of Engines Engineering S.p.A, said, 'Engines Engineering has been operative for the last three decades and I am keen to partner with M&M to fuel growth. I have a great comfort level with M&M, having worked together with them for the last two years. Our relationship has now been strengthened and we can combine our technological strengths, customer base & lower cost engineering excellence to fuel growth in Europe and India.
Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group, said 'I am delighted to welcome Alberto Strazzari and his management team into the Mahindra family and look forward to harnessing their expertise in increasing the depth of our Engineering and Design Services offering. This will accelerate the growth of Mahindra Engineering Services in what we believe is the next great opportunity for India and enable it to leverage its engineering talent for the benefit of customers across the world. Engines Engineering helps us combine the Italian flair for design with Mahindra’s domain expertise and bring it to the doorstep of its European customers. Mahindra Systech has the mandate to build globally competitive businesses in selected verticals and this acquisition greatly enhances its capability to do so.'
Engines Engineering’s revenues are approximately $ 12 Million. It is in the business of two wheels design and developing of motorcycle prototype. The Company was originally founded in 1979 by Alberto Strazzari and offers complete and thorough services to its clients. Currently, Alberto Strazzari hold 85% and three other investors hold the balance in Engines Engineering. It is based in Castenaso near Bologna which is also one of the leading automotive engineering and industrial manufacturing hubs in Italy.
Engines Engineering carries out a full range of activities (starting from a basic idea on a blank sheet, culminating to a finished product on the road) to deliver a product in line with the latest styling trends and incorporates the most advanced technology in terms of mechanics. It thus provides a ‘One Stop Solution’: Conception, design, styling, on line assembly, industrialization and marketing. Some of the most prestigious names that are associated with Engines Engineering are- Benelli, Beta, Ducati, Gilera, Honda, LEM, Malaguti and Yahama. Apart from these, they have developed many products that bear a range of other brands, from Spanish manufacturers to ones in the Far East.
About The Mahindra Group
The US $6 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top tractor brands in the world. Mahindra’s Farm Equipment Sector has recently won the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility vehicles in India. It made a milestone entry into the passenger car segment with the Logan.
The Group has a leading presence in key sectors of the Indian economy, including the financial services, trade and logistics, automotive components, information technology, and infrastructure development.