M&M to buy Italian design company

Mahindra & Mahindra today said it plans to acquire Italian auto design firm G R Grafica Ricerca Design (GRD) for an undisclosed amount.

Through this acquisition, the company intends to develop a global design centre for the group and cater to global auto original equipment manufacturers, M&M said in a communique to the Bombay Stock Exchange.

"The synergies resulting from this acquisition will not only help us strengthen our existing design capabilities but will also help us emerge as a global auto design powerhouse," M&M Automotive Sector President Pawan Goenka said.

Complementary capabilities between Mahindra & GRD will enhance the product development capabilities and provide a strong European footprint to leverage technologies and skill sets through the available talent pool of designers and engineers, Goenka added.

The company would incorporate a new subsidiary, Mahindra Graphic Research and Design (MGRD), for acquiring the Italian firm, M&M said..

GRD executes designing, body engineering and feasibility and styling work for leading auto OEMs and designing companies based out of Europe and Asia.

The current GRD management team will continue to drive all operations for MGRD, the transaction is expected to close by end of January 2008.

Shares of the company were at Rs 822, up 1.41 per cent on the BSE.