Mahindra & Mahindra Acquires a Leading German Forging Company Schoneweiss & Co. GmbH

Mahindra & Mahindra Ltd has informed that, on January 29, 2007, the Company through its subsidiary Mahindra Forgings Global Ltd based in Mauritius has acquired 90.47% stake in Schoneweiss & Co. GmbH, a leading company in the forgings sector in Germany. The transaction was consummated on January 01, 2007.Schoneweiss is a family-owned German company with over 140 years of experience in the forging sector. It is one of the top five axle beam manufacturers in the world and specializes in suspension, power train and engine parts. The company has forging capacity of 50,000 tpa and turnover of Euro 90 mn (for CY 2005). Its top customers include the DaimierChrysler Group, MAN, Scania and Volkswagen. Schoneweiss has three manufacturing plants in Hagen and Gevelsberg, Germany with a total manpower of 550 people.Mr. Anand Mahindra, Vice Chairman & Managing Director, of the Company said, This acquisition creates for us a strong European base as it is fully harmonious with our existing presence in Germany through Jaco AG. We are now well on the path to capitalise on and consolidate our position towards becoming a globally significant player in the forgings business. Also by expanding Mahindras Design to Delivery bandwidth in the components space, Schoneweiss would be a huge step in the Mahindras evolution as the first fully integrated auto component provider from India.Mr. Harald Korte and Andreas Voss, members of two of the founding families and driving force behind Schoneweiss will continue as shareholders of Schoneweiss and continue to be in its Advisory Board and work with the Company as Managing Director respectively. Their expertise and strong customer and supplier relationships will help the Company at higher growth trajectory.Kotak Investment Banking, Mumbai and M&A International GmbH, Kronberg, Germany advised the Company while InterFinanz, Dusseldorf acted as consultants for the Schoneweiss Group.