Mahindra CIE Automotive to acquire Bill Forge Pvt Ltd for Rs 1331 crore

Mahindra CIE Automotive Limited (MCIE) Board of Directors will be acquiring 100pc of equity shares of BFPL for Rs 1331.2 crore. The MCIE Board also resolved to issue 54.49 mn shares to CIE Automotive SA (“CIE”) and BFPL shareholders, including the Haridass Family and Kedaara Capital at Rs 200/share.

Mahindra CIE Automotive Limited (MCIE) is a large diversified auto components supplier formed as a result of partnership between Mahindra Group (“M&M”) of India and CIE Automotive S. A of Spain (“CIE”). As a part of this partnership, CIE took a majority stake in the automotive component companies of the Mahindra Group and which were part of the Systech sector of the Mahindra Group.

Founded in 1982, BFPL is a market-leading precision forging company based in Bangalore, India with 6 manufacturing facilities in India across Bangalore, Coimbatore and Haridwar and an upcoming plant in Celaya, Mexico. Kedaara Capital invested in BFPL in 2015 to support the growth of the company.

BFPL is a crucial supplier to a number of domestic and global two-wheeler and passenger car OEMs and Tier 1 auto component companies.  It manufactures a variety of cold, warm, hot forged and machined components primarily for steering, transmission and wheel-related assemblies.

This acquisition increases MCIE’s operations in the high growth Asian markets and reinforces CIE group’s / MCIE’s position as a leading global forgings player. BFPL’s complementary product and customer mix leads to a significant diversification in the business portfolio of MCIE India.