Mahindra & Mahindra Ltd. (M&M) announced the acquisition of a 58.96% stake in SML Isuzu Ltd. (SML) for a total cash consideration of approximately USD 66.6 million. The acquisition involves purchasing 43.96% equity from Sumitomo Corporation and 15% equity from Isuzu Motors Ltd. at INR 650 per share. M&M will also make an open offer to acquire up to 26% of the equity share capital of SML in compliance with SEBI regulations.
The transaction is subject to approval by the Competition Commission of India and is expected to be completed by the end of 2025. Upon completion, SML will become a listed subsidiary of M&M, and Mahindra will be classified as its promoter.
SML Isuzu, incorporated in 1983, manufactures and sells light and medium commercial vehicles, including buses, trucks, and application-specific vehicles. The company operates a manufacturing facility in Punjab, India, and maintains a pan-India distribution network. SML reported operating revenue of INR 2,196 crore (approximately USD 263 million) and an EBITDA of INR 179 crore (approximately USD 21.5 million) for the financial year ending March 31, 2024. Its turnover has increased from INR 924 crore in FY22 to INR 1,822 crore in FY23 and INR 2,196 crore in FY24.
Dr. Anish Shah, Group CEO and Managing Director of Mahindra Group, stated, “The acquisition of SML Isuzu marks a significant milestone in Mahindra Group’s vision of delivering 5x growth in our emerging businesses. This acquisition is aligned with our capital allocation strategy for investing in high potential growth areas which have a strong right to win and have demonstrated operational excellence.”
Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sector at Mahindra & Mahindra Ltd., said, “SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra’s existing offerings in the trucks and buses segment. This acquisition is a pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and better plant utilization.”
Mahindra & Mahindra Ltd., founded in 1945, is engaged in sectors including farm equipment, utility vehicles, information technology, and financial services. The company has a presence in over 100 countries and operates across renewable energy, logistics, hospitality, and real estate sectors.