M&m Snaps Up 58.96% Stake In Sml Isuzu For Rs 555 Crore To Fast-track Commercial Vehicle Ambitions

In a move group to reshape India's commercialized conveyance landscape, Mahindra & Mahindra Ltd (M&M) announced that it will get a 58.96% liking successful SML Isuzu Ltd (SML) for Rs 555 crore. The deal, struck astatine Rs 650 per share, besides includes a mandatory unfastened connection nether SEBI's takeover regulations. 

The acquisition marks a bold push by Mahindra to bolster its beingness successful nan >3.5-tonne commercialized conveyance segment, wherever it presently holds conscionable a 3% marketplace share. By absorbing SML's business, Mahindra expects to instantly double its liking to 6%, pinch ambitions to scope 10-12% by FY31 and 20% aliases much by FY36.

Founded successful 1983, SML Isuzu commands a beardown position successful India's motortruck and autobus market, peculiarly successful nan intermediate ray commercialized vehicles (ILCV) autobus segment, wherever it holds a 16% share. In FY24, SML reported operating gross of Rs 2,196 crore and EBITDA of Rs 179 crore, underpinned by profitable operations, frugal manufacturing, and coagulated engineering capabilities.

"The acquisition of SML Isuzu marks a important milestone successful Mahindra Group's imagination of delivering 5x maturation successful our emerging businesses," said Anish Shah, Group CEO & MD of nan Mahindra Group. "This acquisition is aligned pinch our superior allocation strategy for investing successful precocious imaginable maturation areas which person a beardown correct to triumph and person demonstrated operational excellence."

Under nan deal, Mahindra will get nan 43.96% liking held by Sumitomo Corporation and a abstracted 15% liking from Isuzu Motors Ltd. The move is expected to unlock important synergies crossed costs structures, marque leverage, manufacturing efficiencies, and merchandise portfolios.

"SML brings a beardown legacy, a loyal customer base, and a reliable merchandise portfolio that complements Mahindra’s existing offerings successful nan trucks and buses segment," said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd. "Together, we are well-positioned to standard quickly and thrust profitable growth."

The transaction, pending support from nan Competition Commission of India, is expected to adjacent wrong 2025. Kotak Investment Banking is advising Mahindra connected nan financial aspects, while Khaitan & Co serves arsenic its ineligible advisor.

Published on: Apr 26, 2025 10:05 PM IST