 "M&M to consolidate component biz, in talks with investors")
Auto major Mahindra and Mahindra is in talks with strategic investors and private equity firms for consolidating its component business, valued at around $ billion, CNBC-TV18 reported today.
The talks are being held parallel to M&M’s plans of bringing the auto component and engineering services companies under the umbrella company Mahindra Systech, making it an end-to-end solutions providers for vehicle manufacturers.
[caption id=“attachment_647496” align=“alignleft” width=“380”]
Anand Mahindra, Chairman, M&M[/caption]
Mahindra’s component business, which consists of six companies is valued at around $ 1 billion. Three of the six companies, namely Mah Forgings, Mah Composites and Mah Ugine Steel are listed.
The talks are being held parallel to M&M’s plans of bringing the auto component and engineering services companies under the umbrella company Mahindra Systech, making it an end-to-end solutions providers for vehicle manufacturers.
Sources told CNBC-TV 18 that many directors of M&M’s component companies are in favour of the move, although a formal proposal is yet to be taken up the board of directors.
Hemant Luthra, President (Mahindra Systech) confirmed that the talks with strategic investors, but refused to divulge details on whether it would result in commercial alliance or equity participation.