The next batch of vehicles to roll out from Indian automotive manufacturer Mahindra may soon bear a little Italian exterior flair.
Ending months of speculation and failed bids, Indian conglomerate, Mahindra, has finally come to terms with Italian auto and industrial design company, Pinanfarina, for its acquisition.
Tech Mahindra Limited, which is a part of the Mahindra Group with business in various industries, including automotive, has struck an agreement with Pincar S.r.l., to purchase 76.06% of of Italian automotive designer, Pininfarina S.p.A.
Responsible for some of the most iconic designs of Ferrari, Alfa Romeo, Peugeot and many others, Pininfarina is expected to give Mahindra automobiles a major boost in ‘product conceptualization and design & styling.’
With shares priced at Euro 1.1 per share, the controlling stake cost the Mahindra Group $28 million with Tech Mahindra owning 60% and Mahindra & Mahindra (the automotive arm of the Mahindra Group) owning 40%.
Along with an offer to purchase the remaining shares, Mahindra is set to make a multi-million dollar investment on Pininfarina and also keep Paolo Pininfarina as the Chairman of the Board.
In addition to the purchase, Tech Mahindra will also invest 20 million Euros in Pininfarina and provide a 114.5 million Euro guarantee to creditors.
Mahindra’s strategic purchase is aimed at improving the design of their vehicles to gain critical foothold in the European market and China as well.
"Pininfarina will add enormous value to Tech Mahindra's portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group. Given the increasing design sensibilities of today's consumers, product design will greatly influence customer choice and experience, and hence our success,” said Mr. Anand Mahindra, Chairman of the Mahindra Group.
"Our clients want more from us, consistently. Adding Pininfarina's legendary design skills to our Integrated Engineering Solutions enables a strong entry into Automotive styling, design & development and reinforces our body engineering capabilities. Further, Pininfarina's 25-year design expertise in industries beyond Automotive will give us that winning edge in areas such as Aerospace, Consumer Electronics, Architecture & Interiors and Transportation where we already have a strong footprint," said CP Gurnani, CEO & Managing Director, Tech Mahindra.
"In a globalized world, entrepreneurship and capital do not need a passport. We are joining hands with a $ 3.9 Billion Technology & Global partner, and part of the $ 16.9 billion global Mahindra Group, which will not only strengthen our Italian identity but will open more doors. Tech Mahindra's global presence and global delivery model will allow us to compete for a larger pie of the business," said Paolo Pininfarina, Chairman Pininfarina S.p.A.