Mahindra & Mahindra on acquisition spree
"We are much closer to acquiring companies in the engineering services sector. Maybe in four weeks time," President MSAT, Hemant Luthra said.india Updated: Oct 01, 2005 17:05 IST
Mahindra & Mahindra Group on Saturday said it is close to acquiring couple of companies both in India and abroad in the auto component and engineering services sector and aims to make Mahindra Systems & Automotive Technologies a billion dollar company by 2010.
"We are much closer to acquiring companies in the engineering services sector. Maybe in four weeks time," President MSAT, Hemant Luthra said.
"We are in final round of talks. We are looking at companies both in Germany and Detroit, we are also in talks with companies here," he said. However, Luthra declined to give further details on whether the first deal will be with a domestic or foreign company.
At least two acquisitions are going to happen by the year end, it may be even more, he said.
The auto component segment of M&M is growing at $250 million and is targetting to become a one billion dollar company by 2010, he said, adding that the segment was looking at both organic and inorganic growth.
"We will be increasing our capacity. We are also looking at merging Mforge with M&M and doubling the capacity of MForge," Luthra said.
He said acquisition in the engineering services sector, which is growing at $15 million now, would be the key driver of growth for M&M and the growth would double or grow even further after the acquisitions happen.
Asked if MSAT would become a separate company, Luthra said, "only time will tell". On funds for the acquisitions he said, "we are not at all worried about finances. Some of it will be done from internal accruals and some by M&M".