Acquisition of the assets of Kinetic Motor Company (KMCL) by Mahindra & Mahindra

Presented By:
Arpit Goel Pratik Ganorkar Harshal Patil Ashwin Satra Freddy DSouza Prashant Lambole

MAHINDRA BUILDS THREE THINGS: PRODUCTS, SERVICES, AND POSSIBILITIES.

To enable people to Rise. Company operate in the key industries that drive economic growth, enjoying a leadership position in utility vehicles, information technology, tractors, and vacation ownership. Company have a growing presence in the automotive industry, aerospace, aftermarket, components, consulting services, defense, energy, financial services, logistics, real estate, retail, and two wheelers. A US $12.5 billion multinational group based in Mumbai, India, are more than 119,900 people in over 100 countries.

In 1947, Mahindra & Mahindra introduced India to the utility vehicle. More than 65 years later, Mahindra & Mahindra are still India's premier utility vehicle (UV) company Mahindra offers cars, pickups & commercial vehicles like the Scorpio & Bolero that are rugged, reliable, environmentally friendly & fuel-efficient At present M&M has also covered the automobile market of other countries like of Australia, Europe, Latin America, Malaysia, and South Africa

Kinetic Motor Company (KMCL) has revolutionized the concept of personalized transportation in India with the launch of Kinetic 'Luna' moped in 1972. Kinetic motor began in 1984 with collaboration with Honda motor of Japan formerly known as Kinetic Honda Motor to sell advanced scooters in India which brought in the 1st gearless scooters on the Indian roads. Kinetic has three manufacturing facilities located at Goregaon Bhima, Ahmednagar and Pithampur to produce more than 4 lakh vehicles per year.

Aug 1, 2008 Mahindra & Mahindra's proposed acquisition of the assets of Kinetic Motor Company (KMCL).Aug 1, 2008 Mahindra & Mahindra's proposed acquisition of the assets of Kinetic Motor Company (KMCL). The deal will enable Mahindra to design and market a range of scooters, value engineered motorcycles and high-end motorcycles for the Indian and global markets.

M&M hold 80% stake in the new firm against a payment of Rs 110 crores, this puts the valuation of KMCL's two-wheeler business at Rs 137 crores.

Mahindra got indirectly involved in motor racing with the acquisition of Italy based engineering and design firm Engines Engineering in 2008.

"The acquisition of business assets of KMCL is a defining moment in the history of Mahindra as it will give us an opportunity to emerge as a full range player with a presence in almost every segment of the automobile industry. KMCL is a strategic fit with our overall twowheeler strategy. The strong in-house design and development competencies provided by Mahindra Engineering Services (MES) and the recent acquisition of Italy-based design house, Engines Engineering, coupled with KMCL's expertise will enable us to assume a significant position in the rapidly growing Indian and global two-wheeler market. I am also delighted to announce that Mr. Anoop Mathur, President Designate, Two-Wheeler Sector, will spearhead this new venture Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group.

KMCL is a company with a rich heritage spanning more than three decades. Over the years, we have introduced several new concepts such as the Luna and India's first gearless scooter which have revolutionized the twowheeler industry. Hence, we are delighted to associate with Mahindra, another pioneering automobile company with a rich legacy which will add long term value to the business and take it to greater h eights,

Ms. Sulajja Firodia Motwani,Managing Director, Kinetic Motor.

49.9 45.5

25.6

6.9

Chart Title
150

100

50
Total Debt

0
2010 -50 2009 2008 2007 2005

Total Assets
Net Profit

-100

-150

14000 12000 10000 8000 Total Assets 6000 4000 2000 Profit

0
2011 2010 2009 2008 2007