Mahindra's CIE deal catapults it into the global arena
The journey of Mahindra and CIE Automotive that began in 2013 is a well thought out and superbly executed strategy to become a global leader in auto components space. There was no dilution in equity or any fresh fund infusion by either group. Mahindra group got added synergy by having dependable global supplier having manufacturing facilities in various countries for its passenger vehicles, commercial vehicle and off-market vehicles. In 2013, the agreement between Mahindra's automotive component businesses and CIE Automotive was signed through which CIE invested in Mahindra CIE Limited (MCIE or earlier Mahindra Forgings Limited) and Mahindra & Mahindra invested in CIE. The deal was nothing but the merger of ambitious plans of both the entities to spread its wings. In this article, we have tried to analyse the where MCIE stands today? Whether the deal was truly accretive for all the stakeholder? Background of the deal The Mahindra Systech (Systech) was establishe...