Mahindra kinetic

Presented By:Arpit GoelPratik GanorkarHarshal PatilAshwin Satra Freddy D’SouzaPrashant Lambole

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

Mahindra Rise 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.

Mahindra Automobiles 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 Ltd.

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.

AcquisitionAug 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).

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.

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.

Mahindra got indirectly involved in motor racing

with the acquisition of Italy based engineering and

design firm Engines Engineering in 2008.

View’s of MD’s of Mahindra Group about the acquisition:-

"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 two-wheeler 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.

View of MD of KMCLKMCL 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  two-wheeler  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  heights,”

Ms.  Sulajja  Firodia  Motwani,Managing Director,

Kinetic Motor.

Advantage to M&M due to acquisition:-

India is the second largest producer of two-wheelers in the world. The two-wheeler industry has grown from 3 million in the Financial Year 1998 to 8 million in the Financial Year 2008.Hence due to this acquisition M&M is set to enter in two wheeler market.

There are several macro environmental trends which make the scooter market especially attractive to Mahindra which includes “younger, more affluent customer base  with a significant number of empowered women and increased scooter demand in tier-2  cities and small towns” and much more.

With  sharply  rising  environmental  concerns  and  favourable  consumer  attitude in  the  West towards  “green” vehicles, two-wheelers  provide cleaner, quieter,  more fuel  efficient  transport solutions. Hence increasing the opportunities to enter in overseas market.

Continued….Also, Kinetic is more famous for its innovative strategies such as launch of the moped Luna in 1972. In  1984,  it  launched  India's  first  gearless  scooter  which  has  come  to symbolize  comfort, convenience  and  universal  appeal.  

Kinetic  has  also  introduced  new  technologies  to  India including four valve engines, electric start on scooters and  motorcycles, v- twin engines, USD forks, etc. It is also the only company to offer top-end world class bikes, Comet and Aquila, to Indian bike enthusiasts.

For KMCL point of view, This whopping deal of Rs 110 crore would be used to repay liabilities of Kinetic Motors, which has term loans of around Rs 60 crore.

Mahindra Venture in Two Wheeler market

Kinetic Stock Performance last 5 yrs

6.9

49.945.5

25.6

Kinetic Historic Graph against BSE

Kinetic Financial Report

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Mahindra Historic Graph vs BSE

Mahindra Financial Report

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