Tech Mahindra, a part of the multi-billion dollar Mahindra & Mahindra Group, has bought a controlling stake in Pininfarina S.p.A, an iconic Italian brand in automotive and industrial design.
Tech Mahindra, a part of the multi-billion dollar Mahindra & Mahindra Group, has bought a controlling stake in Pininfarina S.p.A, an iconic Italian brand in automotive and industrial design. The company has created iconic designs with Ferrari, Alfa Romeo, Maserati and Peugeot over its 85-year old history.
This announcement comes as a proud moment for all Indians all over the world. An Indian automobile company gaining controlling rights of an International design centre is truly remarkable. Tech Mahindra and M&M is set to purchase 76.06 percent of Pininfarina shares from the current controlling shareholder Pincar S.r.l. at a price of Euro 1.1 per share. This investment by Tech Mahindra and M&M shall be done via a joint venture company ‘JVCo’, whose ownership shall be held 60 percent by Tech Mahindra and 40 percent by M&M. This will be followed by an open offer for all the remaining ordinary shares of Pininfarina, at the same purchase price paid for the shares held by Pincar. A rights issue to infuse funds into the design & styling major will also be executed before the end of 2016. Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Mr. Paolo Pininfarina continuing as the Chairman of its board as part of the terms and conditions of the agreement.
Mr. Anand Mahindra, Chairman of the Mahindra Group, said, “Pininfarina will add enormous value to Tech Mahindra’s portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group. Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice and experience, and hence our success.”
Paolo Pininfarina, Chairman Pininfarina S.p.A., said, “In a globalized world, entrepreneurship and capital do not need a passport. We are joining hands with a $3.9 Billion Technology and Global partner, and part of the $16.9 billion global Mahindra Group, which will not only strengthen our Italian identity but will open more doors. Tech Mahindra’s global presence and global delivery model will allow us to compete for a larger pie of the business.”
Tech Mahindra will be largely benefited by this deal as the design company will provide a whole new dimension to design of future Mahindra products. Pininfarina’s high end styling and engineering services on the other hand can take advantage of existing engineering capabilities of Tech Mahindra. Both the companies will be in a win-win situation as it will allow upselling and cross selling to a combined clientele which in turn means a larger market share.
