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Old 24th February 2014, 18:11   #1
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Default Kinetic sells all its stake in Mahindra Two Wheelers

Business Standard has reported that Kinetic Engineering has sold its entire stake of 10.3% in Mahindra Two Wheelers for Rs.182 Crore to private equity investment group Samena Capital.

I think this is the first time that an automobile manufacturer having a stake in an automotive company has sold its stake.

Speaking on the occasion Sulajja Firodia Motwani, Vice Chairperson of Kinetic Engineering said "We were in discussions with M&M for the last 8-9 months and we requested them to allow us to exit as we desire to focus on our core business.

The lock-in period of seven years was still in force but this exit has been completed in five years.

Complete Link to the News Item:

http://www.business-standard.com/art...2400722_1.html
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Old 27th February 2014, 00:14   #2
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Default Re: Kinetic sells all its stake in Mahindra Two Wheelers

This seemed inevitable, with Kinetic plunging deep in red and selling off the larger stake to M & M firstly, the second one seem to be washing their hands off fully.

The two wheeler industry needs deep pockets which Kinetic did not have. Have to see how and when will Mahindra succeed in this business or will pass off to another potential buyer!
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Old 27th February 2014, 10:41   #3
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Default Re: Kinetic sells all its stake in Mahindra Two Wheelers

Mahindra will run the two wheeler business even if they are not making expected profits.Their 4 wheeler business has enough profit and they would not bother much about the slow running 2 wheeler business. Besides they have not invested in any R&D for the scooters. Only the bikes were done from scratch( I am not sure) . For them having a market presence is more important than profits.

I did not understand what Kinetic meant by - ".....allow us to exit as we desire to focus on our core business.". What is their core business?
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Old 27th February 2014, 10:58   #4
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Default Re: Kinetic sells all its stake in Mahindra Two Wheelers

Quote:
Originally Posted by sagarpadaki View Post
I did not understand what Kinetic meant by - ".....allow us to exit as we desire to focus on our core business.". What is their core business?
Looks like Kinetic is into automotive parts manufacturing (no wonder Kinetic ENGINEERING). Pls see - http://www.kineticindia.com/groupcompanies.html

And they've manufacturing plant at AhmedNagar for Engines,Transmission, gearboxes & other parts

Last edited by aargee : 27th February 2014 at 11:00.
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