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Mahindra Systech to bring all its domestic & int'l companies under one roof
Written by Vijay   
Friday, 12 August 2011
Mumbai: Mahindra & Mahindra's component manufacturing division, Mahindra Systech, now has strong approval of the senior management of the company to consolidate all its domestic and international companies and then get it listed. Relative valuation of all the companies has been done by Ernst & Young.

Mahindra Systech, which caters to Bajaj Auto, Tata Motors, Toyota, Maruti Suzuki, Ashok Leyland and Hyundai, among others in India, had a turnover of US $1 billion last year. Nearly 18 percent of its revenue comes from Mahindra's automotive sector.

Nearly half of Mahindra Systech's turnover comes form overseas operations, supplying components to some of Europe's top automotive companies such as Daimler, Scania, Volkswagen and General Motors.

Hemant Luthra, president, Mahindra Systech said that the plan always was to bring the companies under one roof. With the consolidation, existing customers are expected to have better access to offerings from the other group companies. The move is also expected to give cost benefits due to larger purchasing volumes, common marketing and sales etc.

The company recently forayed into aerospace component manufacturing. It is expected to commission its aerospace component manufacturing facility in Bangalore by June 2012.

The consolidation is expected to take time since the the 16 companies under Mahindra Systech have a significant number of investors.

 
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