M&M to acquire 58.96% stake in SML Isuzu for ₹555 crore
In a recent development, Mahindra & Mahindra (M&M), one of the leading automakers in India, has announced that it has signed an agreement to acquire a 58.96% stake in heavy vehicle maker SML Isuzu for a total consideration of ₹555 crore. The acquisition is expected to strengthen M&M’s bus and truck business, and further establish its presence in the commercial vehicle segment.
The deal, which is subject to regulatory approvals, is expected to be completed by the end of March 2023. As part of the agreement, M&M will acquire 58.96% stake in SML Isuzu, which will give it significant control over the company’s operations and strategy. The acquisition is expected to have a positive impact on M&M’s commercial vehicle business, and will enable the company to expand its presence in the segment.
SML Isuzu is a well-established player in the heavy vehicle segment, with a strong reputation for producing high-quality buses and trucks. The company has a diverse product portfolio, which includes commercial vehicles such as buses, trucks, and autorickshaws, as well as specialized vehicles such as firefighting trucks and concrete mixers.
The acquisition is expected to benefit M&M in several ways. Firstly, it will give the company a significant presence in the heavy vehicle segment, which is a growing market in India. The acquisition will also enable M&M to expand its product portfolio, and to offer a wider range of commercial vehicles to its customers.
Furthermore, the acquisition is expected to have a positive impact on M&M’s market share in the commercial vehicle segment. The company has set a target to increase its market share in the segment to 10% to 12% by FY2031, and to 20% by FY2036. The acquisition of SML Isuzu is expected to play a key role in achieving these targets.
The acquisition is also expected to have a positive impact on M&M’s financial performance. The company has reported a significant increase in its revenue and profit in recent years, and the acquisition of SML Isuzu is expected to further boost its financial performance.
In addition to the acquisition, M&M has also announced plans to invest ₹150 crore in SML Isuzu over the next three years. The investment will be used to upgrade the company’s manufacturing facilities, and to develop new products and technologies.
The acquisition of SML Isuzu is a significant development in the Indian automotive industry, and is expected to have a positive impact on the market. The deal is a testament to M&M’s commitment to expanding its presence in the commercial vehicle segment, and to its strategy of acquiring companies that complement its business.
In conclusion, the acquisition of SML Isuzu by M&M is a significant development in the Indian automotive industry. The deal is expected to strengthen M&M’s bus and truck business, and to expand its presence in the commercial vehicle segment. The acquisition is also expected to have a positive impact on M&M’s financial performance, and to boost the company’s market share in the segment.
