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Tech Mahindra acquired Italian designer Pininfarina S. p.
A is not just A car, but also A wider range of design opportunities such as air purifiers, dispensing machines, aerospace and retail, A senior official said.
Technology companies Mahindra and Mahindra have agreed to buy Pininfarina, but some analysts have questioned the technology company Mahindra's participation as a major shareholder of the acquisition.
"A lot of people have linked Bini Falina to Ferrari and other designs, which has aroused suspicion.
They happen to be the design of the car, which is an area that people can come into contact.
If you're starting to look at the bigger picture, the company has designed air purifiers for 3 m as well as various dispensing machines.
So they did a series of other things on the car.
The company is much bigger than that, and that's the main reason we want to buy most of its shares, "Atul Kunwar, President and CTO of Mahindra, a technology company, told The Hindu.
Mr Kunwar also said that no one had ever doubted whether the technology Mahindra should be part of the acquisition, nor had it planned to make Pininfarina
House design firm
The main customers of Binny Falina include BMW, Ferrari, Alfa Romeo, Peugeot, Fiat, GM and Maserati.
"As a service company, you can deal with a lot of people.
For example, Mahindra, a technology company, can serve Tata even if they have TCS.
"If it is going to be part of the M & A then it will be an obstacle," he said . ".
However, analysts seem to take a different view on this.
"This acquisition allows Mahindra Tech to cross
Sales leverage with Pininfarina's customers, because in addition to providing engineering services, it also affects car design.
However, attracting new orders from car OEMs could be a challenge for competitive reasons, as M & A has a direct interest relationship with the company.
Harit Shah and Amit Chandra, analysts at HDFC Securities, wrote in a recent study: "Progress in this area is a key monitored . ".
The brokerage firm is neutral about the stock.
The acquisition will increase the vertical manufacturing of technology company Mahindra, the second largest vertical manufacturing industry after telecom, accounting for 16.
Accounting for 7 of its income.
With the acquisition, Tech Mahindra's vertical manufacturing revenue will grow by 14 percentage points (
According to annualized 2QFY16 income plus Pininfarina income, the income is $ 770mn)
HDFC Securities said.
In contrast, tcs earned $1 in annualized revenue from the manufacturing vertical sector.
Infosys is $2, 6 billion.
2 billion, $1 Wipro.
The company said it was $3 billion and HCL technology was $2 billion.
By combining design with technology, the user experience can be enhanced and the product development cycle can be shortened, Mr Kunwar said.
He also saw the opportunity to participate in concept design and driver design --less cars.