Kinetic gives away entire Mahindra Two-wheeler stake to Sameena Capital

24 February 2014, 07:45 PM Selvin Jose
Kinetic gives away entire Mahindra Two-wheeler stake to Sameena Capital

Mahindra Mojo

Mahindra group’s two-wheeler manufacturing section made an announcement today that the Kinetic group which had 20 per cent equity shares has sold it all to Samena Capital, a private equity firm. The Kinetic group will get Rs 182.1 crore and after committed payments, the net amount will approximately work out to Rs 109.8 crore.

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.”

Anoop Mathur, President, Two-Wheeler Sector, Mahindra & Mahindra, said, “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.” 

This new development is a shot in the arm to Mahindra’s two-wheeler business which is recognised now after their initial leisurely pace of development. Mahindra’s recently launched Centuro has garnered a lot of response and the company is working on more products for the market.

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