Tech Mahindra Ltd. and Mahindra & Mahindra (M&M) have jointly entered into an agreement with Pincar S.r.l. to purchase a controlling stake in Pininfarina S.p.A., an Italian brand in automotive and industrial design. The move will give Tech Mahindra access to European companies with which Pininfarina has close ties, such as Ferrari, Alfa Romeo, Maserati, and Peugeot, and the opportunity for Tech Mahindra to influence product conceptualization, and design and styling. Pininfarina will gain “a newly heightened scale to its operations” due to Tech Mahindra’s presence in 90 countries and access to about 780 customers. As part of the agreement, Tech Mahindra and M&M will purchase 76.06% of Pininfarina shares from Pincar at a price of Euro 1.1 per share. The investment is via a joint venture company, held 60% by Tech Mahindra and 40% by M&M. Pininfarina will continue to remain an independent company, with Paolo Pininfarina continuing as the Chairman of its board.
“Pininfarina will add enormous value to Tech Mahindra's portfolio of engineering services,” Anand Mahindra, Chairman of the Mahindra Group, said in a statement announcing the agreement. “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.”
“Adding Pininfarina's legendary design skills to our Integrated Engineering Solutions enables a strong entry into automotive styling, design, and development and reinforces our body engineering capabilities,” added CP Gurnani, CEO and Managing Director, Tech Mahindra. “Further, Pininfarina's 25-year design expertise in industries beyond automotive will give us [an] edge in areas such as aerospace, consumer electronics, architecture and interiors, and transportation where we already have a strong footprint.”Continue reading »