Mahindra to acquire Italian engineering and design firm Engines Engineering

Utility vehicle major Mahindra & Mahindra Ltd (M&M) will acquire 100 per cent stake in Italian engineering and design services firm Engines Engineering SpA and set up a new business, subject to receipt of necessary approvals, the company said in a release.

M&M said it plans to integrate the two-wheeler design firm, with revenues of around $12 billion, with Mahindra Systech, which is aiming to build globally competitive businesses in selected verticals. M&M did not disclose the cost of the acquisition.

''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,'' Hemant Luthra, president, Systech, said in the release.

''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 and technology along with management skills, '' he added.

Mahindra Engineering Services has over 1,000 engineers in India. The division provides high-end cost-effective solutions and can support the offshore needs and technical skills of Engines Engineering, he said.

''Engines Engineering has been operative for the last three decades and I am keen to partner M&M to fuel growth. I have a great comfort level with M&M, having worked together for the last two years. Our relationship has now been strengthened and we can combine our technological strengths, customer base and lower cost engineering excellence to fuel growth in Europe and India, ' said Alberto Strazzari, chairman of Engines Engineering SpA.