Mumbai, July 30, 2008: Acquisition of KMCL, Mahindra & Mahindra Ltd. (M&M), India's leading automotive companies, announced that its Board of Directors approved the acquisition of business assets of Pune-based Kinetic Motor Company Ltd. (KMCL). The acquisition was done through a New Company to be formed. (New Co.). The consideration for the acquisition is a sum of Rs.110 crores (subject to closing due diligence) plus 20 percent stake to KMCL in the New Co. M&M holds the balance 80 per cent of the equity.
The deal enabled Mahindra to design and market a range of scooters, value engineered motorcycles and high-end motorcycles for the Indian and global markets, helping it establish a robust, end-to-end two-wheeler business in every segment of the industry.
The acquisition of business assets of KMCL is a defining moment in the history of Mahindra as it gives us an opportunity to emerge as a full range player with a presence in almost every segment of the automobile industry.