Five years since Mahindra and Mahindra and CIE Automotive stitched a deal to create a large auto component firm with a global footprint, the strategy has paid off for both the companies in terms of operational and financial performance and market capitalisation. Having successfully integrated the businesses across the geographies, Mahindra CIE is now scouting for acquisition of auto component firms in India in a bid to plug some gaps in its product and customer portfolio said Hemant Luthra, non-executive chairman, Mahindra CIE.
While share prices of Mahindra CIE have risen 489 per cent, CIE Automotive has gained 515 per cent since Jun 2013. “We are enjoying the best of both worlds,” said Luthra. The biggest satisfaction for him he pointed out, is that CIE has made money by investing in Mahindra CIE and Mahindra made money investing in CIE and Mahindra CIE.
When Mahindra invested in CIE, the share price of the Spanish company was 6 Euros, it has climbed up to 32 Euros. Mahindra has seen its profit on this transaction soar to over $500 million from $100 million. CIE's market value has gone up substantially too – while some of it is related to the business here, some outside, said Luthra who has earned the moniker of an ace dealmaker both within and outside the Mahindra Group.
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