M&M May Buy Sonalika Group's Car & Tractor Business.
It is rumored that Mahindra & Mahindra (M&M) could be looking to buy the car & tractor businesses of Sonalika Group.
Sonalika Group is manufacturer of tractors, Farm machines & Automobiles. It has turnover of Rs. 5000 cr. It has an average growth of 30 %. It is a Debt free company.
The Sonalika group comprises separate companies including International Cars & Motors (ICML), 
International Tractors and Sonalika Agro Industries Corporation.
ICML has its production facility to manufacture multi-utility vehicles / sports – utility vehicles, in Amb, Himachal Pradesh which is a tax-free zone.ICML has the installed capacity to manufacture 2000 MUVs in a month i.e., 24000 MUVs in a year.ICML has plans to export its MUV to Malaysia, Nepal, Bangladesh , Indonesia & African continent soon.
ICML has entered into Technical Collaboration Agreement with MG Rover of UK for the technical know – how. ICML is manufacturing MUV, RHINO RX . This deal may give M&M access to a ready-made car manufacturing unit.CVCI (Citigroup Venture Capital International) had 18% stake & 3i Agri-Vehicels still has 10% stake in ICML.Promoters & relatives own 90% stake.
Sonalika’s chairman L D Mittal has denied such rumors though Mittal admitted that Pawan Goenka did visit its HP facilities to discuss about M&M’s desire to get some of its cars manufactured there. The discussions have not materialized yet.
Transaction Reference : DNA
ICML achieved a total turnover of Rs.2082.16 mn in FY 2009 as compared to Rs.964.96 mn in FY 2008 ie up by 116%. The company sold 3565 vehicles during the year against 1674 vehicles in the previous year. Its installed capacity is of 24000 vehicles. It may agree to give M&M access to its car manufacturing unit.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 11/03/10 | International Cars & Motors- M&M | M&A | Mahindra & Mahindra Limited | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 03/05/12 | Private Equity | Monetary Authority of Singapore | Samvardhana Motherson Finance Limited | 41.72 | Completed |
| 26/04/12 | Private Equity | International Finance Corporation | ATC Tires Private Limited | 160.00 | Planned |
| 26/04/12 | Private Equity | Commercial Engineers & Body Builders Co. Limited | - | Completed | |
| 25/04/12 | IPO / Offerings | Samvardhana Motherson Finance Limited | 315.88 | Called Off |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Mahindra & Mahindra Limited | Mahindra & Mahindra Group | Gateway Building, Apollo Bunder, Mumbai - 400 001 |
Tata Motors Limited International Cars & Motors Limited |
http://www.mahindra.com/ |
| International Cars & Motors Limited | Sonalika Group | 283,Sonalika House, AGCR Enclave, Karkardooma, Delhi-110092 |
Mahindra & Mahindra Limited Tata Motors Limited Maruti Suzuki Limited General Motors India Private Limited |
http://www.icml.co.in/index.html |
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