By 07 April, 2014
Mahindra CIE in talks with Japanese firms to form tripartite JV, eyes local buyouts

Global auto component major Mahindra CIE is in talks with a Japanese auto ancillary and a trading firm to form a tripartite venture, as per a Mint report citing a top company executive.

It is also eyeing a few buyouts in India and all these deals are expected to be concluded in the current financial year, Hemant Luthra, chairman of Mahindra CIE, told the paper.

The firm is also in talks with three Indian companies that specialise in machining, composites and casting components for a buyout.

As per the proposed plan, the three-party JV will be based in Thailand or Malaysia. “As part of Mahindra CIE’s grand strategy, which includes drawing one-third of revenue each from Latin America, Southeast Asia and Europe, we are starting to explore mergers and acquisitions in Southeast Asia,” said Luthra.

Mahindra CIE is a joint venture between Mahindra group’s component-making arm Mahindra Systech and CIE Automotive SA, Spain. Last year in June, Mahindra Group brought together three listed companies (Mahindra Forgings, Mahindra Ugine Steel and Mahindra Composites) and two unlisted outfits (Mahindra Hinoday Industries and Mahindra Gears) under one firm to create the JV. The entity got renamed as Mahindra CIE, in which CIE Automotive holds a majority stake.

(Edited by Joby Puthuparampil Johnson)

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