M&M revs up for Italian ride

The tractor and utility vehicle maker is learnt to have set sights on Italian motorcycle marque brands — Cagiva and MV Agusta — famed for designing high-end, high-performance superbikes that are a rage on the speed motorcycle circuit.

M&M is keen on entering the two-wheeler space and has been talking to a number of Italian and domestic two-wheeler brands. The utility and tractor major is understood to have held talks with Ducati at one point in time, but it failed to materialise.

While it’s too early to peg a value to the deal size, the Italian company is estimated to have posted a combined revenue of euro 141.3 million in 2007 (around Rs 1,057 crore) and a loss of euro 34.4 million during the same year.Although India is a large two-wheeler market with annual sales of over 7.5 million units, the country can’t still boast of high-end, high-performance bikes.

Read more in The Economic Times article.

M&M in talks to buy Kinetic Motors

Mahindra & Mahindra (M&M), the country’s largest utility vehicle maker, is in talks to acquire Kinetic Motors, the Pune-based two-wheeler manufacturer. The move signals M&M’s interest in the two-wheeler segment, which has seen sharp growth and fierce competition in the past few years. The maker of Scorpio has been trying without success to get into the segment for the past few years.

People close to the development said both companies are in the final stage of due diligence and M&M is expected to pick up a majority stake in the company. Kinetic Motors has been valued at close to Rs 150 crore and the deal size is expected to be in the range of Rs 70-80 crore.

Read more in The Economic Times article.

JBM Auto signs JV with Ashok Leyland

JBM Auto Ltd said on Monday it has signed a joint venture with Ashok Leyland Ltd to supply sheet metal components.The venture, in which JBM holds 74 per cent stake, will invest Rs 100 crore, the company said in a statement. The commercial operations will start from 2010.

Mahindras have designs on Stile Bertone

Mahindra & Mahindra has set sights on Italian automotive style company, Stile Bertone — famed for designing iconic models like the Alfa Romeo, Lamborghini, Aston Martin and Ferrari.The Mahindra group, which developed close business ties with the Bertone group after the Italian company designed some of its utility vehicles, is learnt to be talking to the Bertone family to explore options of buying an equity stake.

The unlisted Italian company is estimated to post a revenue of E39.1 million in 2008.A deal with the Bertone family will give Mahindras access to high-tech design and also help the Indian auto company in its plans to build a global R&D centre.The move will also help M&M cater to global auto OEMs at a time when even the Tatas are planning to open a global R&D design centre in the UK.

Besides providing an European footprint, it would help M&M leverage technologies and skillsets, and enhance product development by harnessing the talent pool of designers and engineers, said analysts.

Read more in The Ecomomic Times article.

Nissan, Leyland in small truck alliance

The Chennai-based commercial vehicles maker and Japan’s Nissan Motor, in which France’s Renault is the single-largest shareholder, today agreed to form three joint ventures to develop, manufacture and market light commercial vehicles (LCVs). The joint venture will produce 100,000 vehicles annually in the medium term.

Renault already has a joint venture with utility vehicles maker Mahindra & Mahindra, which is rolling out the Logan sedan, and has announced another one with two-wheeler maker Bajaj Auto for a low-cost car.

The first of the three ventures will make Nissan commercial vehicles in India for the domestic market and overseas sales. Ashok Leyland will control a majority stake in the company.A venture for assembling engines and related parts is also on the cards. It will be controlled by Nissan.

The third company, equally owned by the two partners, will develop LCVs and engines, and market them in India and overseas. The products developed will be sold under both the Ashok Leyland and Nissan brands.

The two companies are also thinking of collaborating in sales and distribution. This may include giving Nissan an access to Ashok Leyland’s vast dealer network. Ashok Leyland may use Nissan’s dealer network in identifying export markets.Ashok Leyland expects to sign a final agreement with Nissan in October after completing a feasibility study.

Tatas may be sole bidder for Jaguar, LR

Tata Motors is inching closer to acquiring Jaguar and Land Rover. Sources in the know told DNA Money that the Tatas are the only serious bidder for the Jaguar-Land Rover (JRM) marquee now.According to them, Mahindra & Mahindra is yet to put in a formal bid for the two brands.

Tata Motors is on a good wicket, because the other strong contenders, namely the who’s who of global private-equity firms, named as possible bidders, may also not pass muster.Ford Motor Company, it seems, is keen on selling the two brands to dedicated car companies only.

The Tatas have appointed Morgan Stanley as their merchant banker for the transaction and they may be ready to pay between $1.5-2 billion.

Read more in The DNA Money article.