Mahindra group
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Automobili Pininfarina
2019: ‘fastest’ e-super car unveiled
March 6, 2019: The Times of India
From: March 6, 2019: The Times of India
Luxury electric vehicles brand Automobili Pininfarina, a part of the Mahindra Group, on Tuesday unveiled its luxury electric vehicle Battista here, which is touted to be faster than a current Formula 1 race car in its 0-100 km/h sub-two second sprint.
When it arrives in 2020, the Battista will be the most powerful car ever designed and built in Italy. It has the potential to accelerate to 62 mph in less than two seconds, faster than a Formula 1 car, and break the 250mph top speed barrier — all with a potential zero emissions range of over 300 miles, the company said. It will deliver a level of performance that is “unachievable today in any road-legal sports car featuring internal combustion engine technology”, it claimed.
“This is the most authentic and exciting automotive story imaginable. The Battista is the hypercar of the future, inspired by a legendary past,” Automobili Pininfarina CEO Michael Perschke told reporters.
Electrification unlocks the door to a new level of performance and a zero-emissions future, whilst a passion and respect for automotive history will define how this landmark car looks and feels, he added. “We aim for the Battista to be a future classic and automotive icon, writing its own page in automotive history books,” Perschke said.
No more than 150 Battistas will be hand-crafted in Italy and allocated equally between the regions of North America, Europe and Middle East/Asia, Pininfarina said. Customer service will be delivered through some of the world’s best luxury car retail specialists, from Los Angeles to London to Tokyo, it added.
The Turin-based company has named the model after Battista ‘Pinin’ Farina, the founder of the Carrozzeria Pininfarina coach building company that he started in 1930. The all-electric hypercar is designed and hand-built in very limited numbers at Pininfarina SpA.
Based out of Europe, Automobili Pininfarina combines its automotive design prowess with Mahindra’s growing electric vehicle (EV) expertise, gained from participation in the Formula E electric racing car championship.
The Mahindra Group had acquired Pininfarina in late 2015 for an overall outgo of over 50 million euros after months of negotiations.
Overseas ventures
2017: buys 2nd Turkish tractor plant, foundry
Tractor major Mahindra & Mahindra has acquired its second Turkish tractor asset. In a deal size worth around $117 million, M&M acquired 100% in Erkunt Traktor as well as 80-100% stake in subsidiary foundry Erkunt Sanayi.Erkunt is the fourth largest tractor company in Turkey and has a revenue of $88 million, while the foundry has a revenue of $51 million. This is the second Turkish acquisition for M&M after Hisarlar. “We have agreed to an enter prise valuation of $76 million for the tractor company and $51 million for the foundry . This is an outright cash purchase from the founder Armagan family and this acquisition is primarily for the Turkey market. Its pro duct range also fits in because our tractor range in India is up to 65HP while Erkunt's range is between 55-110HP ,“ said M&M MD Pawan Goenka.
As for the foundry , it is 35% owned by the tractor company and feeds its requirements. “It is a good state-of-the-art plant with an export focus and 80% of its revenue comes from exports,“ said Goenka.
The latest acquisition is part of the company's larger game plan in the tractor and farm implements business with an eye on becoming one of the top-3 global players in the next eight-10 years. “To grow to that scale, we need to look outside India for additional tractor market share and get technology andor market foothold in key global geographies,“ said Goenka. Turkey is the world's fourth biggest tractor market.
2017: MRR Development (real estate, Manhattan)
Nandini Sengupta, Mahindra sets up Manhattan realty co, November 3, 2017: The Times of India
Anand Mahindra, chairman of the $19-billion Mahindra Group, is investing in US real estate in his personal capacity . He is partnering with Rotem Rosen, a New York real estate owner and developer and Jerry Rotonda, who has been CFO of Deutsche Bank, WM Americas. The trio are setting up a real estate firm called MRR Development which will focus on real estate projects in Manhattan.
This investment has nothing to do with Mahindra Group. When contacted, the group shared a statement confirming the development: “MRR Development, headquartered in Manhattan, is a premier full service real estate powerhouse, founded personally by Anand Mahindra through his family office, and will focus on the identification, acquisition, development, conversion & sale of real estate speci fically in Manhattan, reflecting the fundamental analysis of long-term drivers of capital appreciation.“
It added, “MRR will systematically target development projects that deliver value and quality to buyers. The three partners have delivered a “strong risk-adjusted track record of returns in their re spective careers by relying on their investment discipline and sourcing capabilities.“
Forbes magazine values Anand Mahindra's net worth at $1.55 billion. He has earlier made similar individual investments into Epic Channel, partnering with Mukesh Ambani. Three years later, Ambani reportedly sold his stake in Epic last November.
Mahindra has also made several investments in startups including in companies like SheThePeople, LocalCircles India and more recently Thinkerbell Labs and the Naandi Education Support & Training (NEST).
2018: M&M buys 10% of Canada’s Resson Aerospace
Nandini Sengupta, M&M picks up 10% stake in Canadian agri tech firm, May 2, 2018: The Times of India
As part of its Farming 3.0 vision of expanding global footprint and introducing cutting edge technology into the farm equipment sector, Mahindra & Mahindra is investing just over $5 million (or Canadian $6.63 million) for a 10% stake in Canadian technology company Resson Aerospace Corp.
The investment is an all-cash deal that will allow M&M to use the Canadian company’s technology — a combination of computer vision, machine learning and big data analytics to offer insights into crop health – both in key global markets as well as in India. M&M will acquire around 800,402 Class C preferred shares of Resson Aerospace and the deal should be sealed by May 10. 2018.
M&M has been aggressively investing in a series of global companies with an eye to either gain critical products or marketshare or technology. The Resson Aerospace deal is a technology driven investment.
“The deal is in alignment with everything we’ve been saying about advanced technology farming or Farming 3.0 and the Resson Aerospace technology will be useful for us globally,’’ said a senior company source. “We have ambitions not restricted to India.’’ M&M’s Farming 3.0 vision is about the use of digital technology to change the way farming is done. The company has showcased technologies like driverless tractors as part of this larger vision.
In the past couple of years, M&M has invested in a number of global companies. In early 2017, it acquired 75% stake in Turkey-based farm equipment manufacturer Hisarlar Makina Sanayi ve Ticaret Anonim S irketi and followed it up with the acquisition of Turkish tractor maker Erkunt Traktor Sanayii AS later that year. M&M plans to double its global revenue from the farm equipment sector to $5 billion by 2019, targetting that 50% of its total farm equipment sector revenue comes from global markets.
Technology development
2018: Ford’s cheapest electric vehicle, Aspire
Pankaj Doval, M&M helps Ford make cheapest electric vehicle, February 27, 2018: The Times of India
Mahindra & Mahindra (M&M) is set to give Ford its cheapest electric car globally, while the two companies have also started work on a new platform to develop an SUV that would be sold under their individual branding.
Top sources told TOI that M&M has helped Ford develop an electric version of its Aspire entry sedan, and this can hit the market by next year. “Ford has gained tremendously from Mahindra’s strength in electric vehicles technology. The Aspire will be the first to hit the roads and, unlike its existing petrol/diesel version, which is under 4 metres in length, the electric variant will be a longer one,” one source said.
The two companies had in September last year signed a memorandum of understanding (MoU) — initially for a period of three years — “to leverage their mutual strengths during a period of unprecedented transformation in the global automotive industry”.
The MoU was to explore joint work on electric vehicles and global distribution as teams from the companies have been working on striking synergies and areas for mutual benefit. Mahindra’s help will now enable Ford to get an “affordable electric vehicle” in India “substantially quicker” and ahead of launch by even market leader Maruti Suzuki, which has announced a 2020 entry into electric vehicles.
“The vehicle will be right in the heart of the market. Apart from mainline customers, the vehicle will also help Ford participate in lucrative government orders, with a big thrust on cleaner vehicles in purchases by both central and state governments.”
A detailed questionnaire sent to Mahindra on the matter remained unanswered, while Ford refused to answer any direct queries. “This strategic alliance between Ford and Mahindra aims to explore how the two companies can work together. It is too early to discuss details and comment on speculations at this stage,” a spokesperson for Ford said.
The two companies have also started work on an allnew SUV. “This is being developed jointly, and is an ambitious and bold step. The joint SUV project is at a very advanced stage and while there will be a joint platform, the design will be individual for the both the companies in line with their brand philosophies.”
2021: JV called off
Pankaj Doval, January 2, 2021: The Times of India
From: Pankaj Doval, January 2, 2021: The Times of India
While the world was ushering in the new year, Mahindra and Ford decided to call off their proposed joint venture (JV), “mutually and amicably”, in a dramatic fashion, blaming the post-pandemic tough business and economic environment.
Company executives, however, admitted that the deal wasn’t the best option for the two entities. Ford’s independent business operations in India will still continue. In 2019, Mahindra and Ford had announced definitive plans for a JV that would have seen the companies come together once again for making vehicle platforms, SUVs, electric cars, and connected & digital solutions. They had earlier forged a partnership between 1995 and 1998.
But on the last day of formalising the relationship, they developed cold feet and decided to call it off. “The build-up had been there for the past few months, but the announcement was made only now. We thought it was the best thing to do to avoid regrets in the future,” a Ford executive said.
The statement came before day-break. “The outcome was driven by the fundamental changes in global economic and business conditions caused, in part, by the pandemic since the agreement was first announced. These changes influenced separate decisions by the company and Ford to reassess their respective capital allocation priorities,” Mahindra said in a statement that was flashed at 1:25am. At 2.44am, Ford issued a statement saying the decision followed the passing of the December 31 “longstop”, or the end of the deadline for a definitive agreement the organisations had entered into in October 2019.
Mahindra MD Pawan Goenka, who was instrumental in developing the plans for the JV, said it was a difficult decision. “It was not an easy call. (But) it was the right call given where we are.”
Mahindra deputy MD and group CFO Anish Shah said the company is going back to follow “core fiscal discipline” through the decision and is “taking action before we see problems”. Mahindra was to invest at least Rs 3,000 crore as part of the deal.
Roxor
US court: Roxor infringes trade dress of Jeep on six design elements/ 2020
From: BLOOMBERG, Fiat Chrysler wins bid to block US imports of Roxor, M&M to appeal, June 14, 2020: The Times of India
Fiat Chrysler Automobiles NV won its bid for an order to block US imports of Mahindra & Mahindra Ltd’s Roxor off-road vehicle that it said copies the look of the iconic Jeep Wrangler, the International Trade Commission said in a notice posted on the agency’s website. The commission upheld, with modifications, a judge’s finding that Mahindra’s off-road vehicle is a copy of the Jeep. The Trump administration can veto the ban on public policy grounds, though that rarely happens, and Mahindra pledged to appeal.
Fiat Chrysler claimed that the Roxor is a “nearly identical copy” of its Jeep, particularly the “boxy body shape with flatappearing vertical sides and rear body ending at about the same height as the hood.” Judge Cameron Elliot in November found that the Roxor would infringe the trade dress of the Jeep as defined by six specific design elements, but not the registered trademarks for the Jeep’s front grille. He recommended that the commission block imports of the Roxor kits and components, saying Mahindra is trying to evoke the Jeep image, which would erode the value of the Wrangler.
Both sides asked the commission to review the portion of the decision they lost. Mahindra, India’s largest maker of sport utility vehicles, makes the components in India and the Roxor is assembled at a plant in Michigan. It’s already hurting from a slowdown in India’s market for cars and trucks and reported no domestic sales in April because of the coronavirus pandemic. The US market, the biggest in the world for off-road vehicles, could help it weather the pandemic. Fiat Chrysler said it was “pleased with the USITC decision in this matter” but wanted to “study the decision further before offering any substantive comment.” In January, Mahindra said the 2020 Roxor model had “significant styling changes” and that it would “make additional styling changes, if so required, in cooperation with the ITC.” The 2020 vehicle, dubbed “The Beast,” starts at $16,599, according to Mahindra’s website.
In a filing with the commission, Mahindra said its new models aren’t in violation, and that Fiat Chrysler is trying to grab “a practical monopoly over the import and sale of components used in any boxy, open-topped, military-style vehicle.” Mahindra said in a statement that it and its North American unit “remain resolute in its position that the Roxor does not dilute or violate Jeep’s trade dress.”
“The vehicle that was subject of the action was produced in 2018 and 2019 and is no longer in production,” the company said. “The Roxor design was refreshed for the 2020 model year and further design changes are in the works as part of the normal design cycle.” Fiat Chrysler said that Mahindra plans to “design right up to the line of infringement,” and said any question of whether the newer models should be allowed in the US can be decided later.
While the coronavirus pandemic has slowed the $12.2 billion market for off-road vehicles this year, sales are expected to rebound in 2021, with the biggest growth in North America, according to analysts at Stratview Research.
