Tech Mahindra the subsidiary of Indian automotive company Mahindra and Mahindra acquires the legendary design firm Pininfarina SpA for Rs 1240 crore.
Pininfarina is the Italian car styling company known for its designs for iconic brands such as Ferrari, Maserati, Rolls-Royce and Cadillac. Even though the company is best in design it was in debt since last 10 years and have total debt of $57 million by the end of this year. The design firm has designed more than 1000 cars and recently worked in boats and plane designs.
Earlier we reported about this deal and now we have details about it. The deal will give 60% of stake to Tech Mahindra and rest to Mahindra and Mahindra from 76% of shares from Pininfarina. Pininfarina will remain an independent company, listed on the Milan Stock Exchange, with Paolo Pininfarina, the founder’s grandson, continuing as its chairman.
Pininfarina will add enormous value to Tech Mahindra’s portfolio of engineering services. The legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group
Mahindra Group Chairman Anand Mahindra said.
This is latest big 3rd international acquisition by Mahindra and Mahindra group after Korean Ssangyong and PSA group’s motorcycle division. Surprisingly, this new acquisition will go under IT based group Tech Mahindra and not Mahindra and Mahindra. Tech Mahindra is having a vast services portfolio from automotive to power sector including IT.
We smell the possibility of offering design services from Tech Mahindra’s new acquisition Pininfarina to other automotive companies in India and rest of the globe. All we expect now is Ferrari and Maserati like designs for upcoming Mahindra cars which will debut after 3-4 years down the line.