MAHINDRA CLOSES IN ON KINETIC!
Mahindra & Mahindra is planning to acquire a 76% stake in two wheeler maker Kinetic Motor Company for an estimated 120 crore rupees, for which it has signed up a term sheet and was doing due dilligence, sources have reported.
The deal could frutify in the next two months. Kinetic Motor’s Managing Director Sulajja Firodia declined to comment on it, saying this is completely speculative. Kinetic Motor company is seeking fund infusions to the tune of Rs. 125 Crores and is looking at both financial institutions and staretegic investors, which would help the company to return to profit.
Keep watching this space for more.
4 People have left comments on this post
Whats the point in aquiring Kinetic?
Cheers
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Kintetic as a company I think is a lost cause. Poorly planned products and bad manufacturing standards have driven the company firmly away from the minds of the people. So many companies and most of them multinationals have meant that there is not too much hope for Kinetic and its products. What will Mahindra do with Kinetic? Mahindra may want to get into the two wheeler space. But then if does not have a proper strategy in place, it will probably make no difference in the market. Kinetic has the desings of the Italjet scooter range. If they are developed with sensible and well made engine options it could give them a chance. But if they choose to go blundering like Kinetic is doing now with Chinese products, then there is not a hope in hell.
I have never understood what prompted Kinetic to advertise “bookings open” for their sym scooter when the going was really tough for them. Perhaps they thought like always that they can continue fooling Indians with these cheap tactics …… Now they are finally ready to pay for what they kept on doing so looooooong.
Mahindra’s aquisition of Kinetic was their strategy. Mr. Mahindra very rightly said about the two wheeler population in India. Also Mahindra recently taken over an Italian engine design firm so they can easily reposition Kinetics products.