Mahindra and Mahindra acquires Kinetic Motors
Posted by admin at July 30th, 2008 under Auto News |
Mahindra and Mahindra today formally entered into the 7million Indian two wheeler market with the acquisition of Kinetic Motors.A new company called Mahindra Kinetic is formed in which will have control of 80% stake in the new company and 20% would be held by Kinetic Motors. Mahindra & Mahindra have acquires the majority stake for Rs 110 crores. For Mahindra and Mahindra which has been scouting to enter into the two wheeler industry, Kinetic offered a best fit with a decent presence in the Indian two wheeler industry. For Kinetic the mony it got through this deal will be used to pay off the debt and flourish other kinetic auto components,elevators and infrastruture.
Kinetic ‘s taiwan partner SYM would continue to be a shareholder in Kinetic Motor Company and would become technical partners to the new alliance. SYM has acquired 11% stake in Kinetic Motors last year. Kinetic has also acquired rights to manufacture and sell seven scooters of Bolgona based Italjet in 2005. The new Mahindra Kinetic will manufacture Italjet models and high end motorcycles under the new brand. But all is not good to hear, Mahindra and Mahindra plans to hike prices of all models.
Kinetic product portfolio:
Mopeds – V2, King and Luna.
Motorcycles – Comet, Aquila and Stryker
Scooters & scooterettes – 4S, Nova 135, Kine,Blaze and Flyte