India’s tractor and utility vehicle manufacturing giant Mahindra & Mahindra (M&M) has acquired a 100 per cent stake in the Italian engineering and design firm, Engines Engineering S.r.l. Though M&M has not divulged how much the deal is worth, the move does signal its entry into the bike industry. The M&M’s deal was signed with Engines Engineering S.p.A on Thursday 5 June for acquiring Engines Engineering S.r.l, the new legal entity of the Italian company. Engines Engineering S.r.l will hold the transferred business of Engines engineering S.p.A, which is subject to necessary approvals.

 

The president of M&M Systech, Hemant Luthra remarked that the company had wanted to acquire a good design house because of increase in offshoring demands for engineering services. He said buying the Italian engineering and design firm would provide them the ‘perfect vehicle to penetrate into markets of Europe, China and Russia.’ In addition, the M&M would also get a skilled management through this deal. Engines Engineering deals with the business of two wheels design and developing of motorcycle prototype and its annual revenues accrues to $12 million.