M&M scouting for acquisitions in auto comp biz in US, Europe

M&M scouting for acquisitions in auto comp biz in US, Europe

New Delhi: Aiming to scale the billion-dollar turnover mark by 2010 in its auto component business, Mahindra and Mahindra is looking for acquisitions in overseas markets for forgings, design and engineering software solutions.

The company is also looking at establishing its base in emerging markets like China and Africa.

“We are looking at a billion dollar turnover by 2010, which is currently at $800 million. We are also looking at one billion dollar market capitalisation as early as possible as against current market cap of $600 million," M&M President (System and Technology Sector) Hemant Luthra said here on the sideliens of ACMA annual convention.

He said the company was looking for acquisitions in forgings, design and engineering software solutions to add value to its offerings.

“We have six-seven acquisition opportunities and you may see a couple of them in this fiscal. An acquisition would be in forging," Luthra added.

He said M&M was looking out for acquisitions in designing and engineering space in Europe and North America as a part of its strategy to provide engineering software services. “We are looking at companies, which can add value, provide management, technology and customer market access."

Terming China and Africa as the missing links, Luthra said the group plans to have a presence in these emerging markets for forging business.

“In China, there are lot of options but we are studying some interesting models like contract sourcing and we may use our marketing team in Germany for contract sourcing there," Luthra said.