Press release - Kinetic divests entire Mahindra two wheelers' stake to Samena Capital
For Immediate Dissemination
Kinetic divests entire Mahindra Two Wheelers’ stake to Samena Capital
Mumbai, February 24, 2014: Mahindra Two Wheelers, part of the US$ 16.7 billion Mahindra Group, and
Kinetic Engineering (KEL) announced today that KEL has sold its entire equity stake in Mahindra Two
Wheelers Limited (MTWL) to Samena Capital, a private equity investment group focused on Asia and the
Kinetic Group had originally acquired the stake in November 2008, when its group company, Kinetic Motor
Company Limited (KMCL), sold its two wheeler business assets to MTWL, for cash as well as a 20% equity
stake. Subsequently, KMCL was merged with Kinetic Engineering Limited (KEL) in 2012, as a result the stake
had been transferred to the latter.
Kinetic will receive a consideration of approximately Rs. 1821 million and after certain committed payments
including NCD repayments, cost of financing etc; the net proceeds would amount to approximately Rs. 1098
million, which KEL will use for its business operations.
Commenting on the transaction, Sulajja Firodia Motwani, Vice Chairperson of Kinetic Engineering said,
““Kinetic is extremely proud of its partnership with M&M. We are certain that MTWL will grow from strength to
strength to become a significant player in the two-wheeler industry. Kinetic is now focused on building its
Automotive Systems business through its various group companies. We have made good progress in building
a business in engine and transmission systems in KEL, motor business in Kinetic Taigene, as well as
automotive electronics business in the Kinetic Ducati alliance. We are divesting our stake in MTWL, in order to
invest in meeting the requirements of our Automotive Systems business in KEL. We will utilize the proceeds to
meet various obligations of this business including working capital and FCCB/ debt repayment requirements to
strengthen our balance sheet.”
According to Anoop Mathur, President, Two Wheeler Sector, Mahindra & Mahindra, “We are happy with
our association with the Kinetic Group which enabled us to enter the two wheeler business some years ago.
We welcome our new partner Samena Capital at a time when our business is growing strongly driven by rising
demand for the Centuro motorcycle which has been developed based on keen consumer insights.”
"We are delighted to be partnering with Mahindra & Mahindra to help build Mahindra Two Wheelers into a
leading global player,” said Ramesh Venkataraman, Senior Partner at Samena Capital. ”The early success
of Centuro has demonstrated what the organisation is capable of and we look forward to an exciting and fruitful
relationship in the years to come.”
Established in 2008, Samena Capital is a principal investment group focused on Asia and the Middle East.
Samena Capital’s unique model combines a diverse group of business families and entrepreneurs from across
the world with experienced investment professionals based in London, Dubai, Hong Kong, Singapore and
Mumbai. Ambit, led by Mr. Ashok Wadhwa, acted as the sole financial advisor to KEL for this transaction.
Kinetic Engineering is a part of the Kinetic Group of Companies, a premier automotive and manufacturing
group that belongs to the eminent Firodia family of Pune. Kinetic has been a pioneer in the two wheeler
industry and has to its credit the launch of India's first moped, Kinetic Luna, as well as India's first advanced
technology gearless scooter, the famous Kinetic Honda.
Recently the Group has diversified into Automotive Systems as its key focus area. Kinetic Engineering
specializes in Powertrain Systems, including engine and transmission assemblies for 2-wheelers, 3-wheelers,
commercial vehicles, and recreational vehicles. Kinetic Engineering has technology collaborations with Magna
Steyr of Austria and TGB of Taiwan for the design and development of Transmission Systems.
Kinetic Group's Automotive Systems business also includes Kinetic Taigene, a specialist in Motors, and Kinetic
Communications and Kinetic Ducati that specialize in automotive electronics. Kinetic has recently launched a
range of green, battery operated vehicles under the banner of Kinetic Green. Kinetic Group is also a leading
player in high end elevators, escalators, and moving technologies through KHEMTL, its joint venture company
with Hyundai of South Korea.
For further enquiries
Phone: +91 98232 77008
The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural
prosperity, enhance urban lifestyles and increase business efficiency.
A USD 16.7 billion multinational group based in Mumbai, India, Mahindra employs more than 180,000 people
in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a
leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition,
Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence,
energy, financial services, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two
In 2012, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed
companies in the world. In 2013, the Mahindra Group received the Financial Times ‘Boldness in Business’
Award in the ‘Emerging Markets’ category.
Visit us at www.mahindra.com
For further enquiries
Chief Group Communications Officer
Phone: +91 22 2490 1441