The journey of Mahindra and CIE Automotive that began in 2013 is a well thought out and superbly executed strategy to become a global leader in auto components space. There was no dilution in equity or any fresh fund infusion by either group. Mahindra group got added synergy by having dependable global supplier having manufacturing facilities in various countries for its passenger vehicles, commercial vehicle and off-market vehicles.

In 2013, the agreement between Mahindra’s automotive component businesses and CIE Automotive was signed through which CIE invested in Mahindra CIE Limited (MCIE or earlier Mahindra Forgings Limited) and Mahindra & Mahindra invested in CIE. The deal was nothing but the merger of ambitious plans of both the entities to spread its wings.

In this article, we have tried to analyse the where MCIE stands today? Whether the deal was truly accretive for all the stakeholder?

Background of the deal

The Mahindra Systech (Systech) was established in 2004 by the Mahindra Group. Systech was a group of multiple companies of the Mahindra group which oversees the Castings, Forgings, Stampings, Gears, Rings, Magnetic products, Steel, Composites, Engineering and Contract Sourcing services. It was also offering a variety of components and services to the automotive and other ground-based mobility industries around the world. The group was having manufacturing units across India, Germany, Italy, and the UK.


CIE Group, Spain was having a global presence in the fields of forgings, Machining, Stampings, Aluminium, Plastics, Bio-Fuel and Information & Communication Technology. In June 2013, the Mahindra group and CIE Automotive of Spain announced their global alliance whereby CIE Automotive would become the majority shareholder in the Systech Automotive Component Business while integrating CIE’s European forging business with Systech’s. Under the deal, CIE automotive acquired 53% in the new entity (Mahindra CIE) through its subsidiary and merged its European forgings business (Spain, Lithuania). M&M acquired 13.5% stake in CIE Automotive making the overall deal cash neutral to both parties. As a part of this deal, all the Systech’s were consolidated into Mahindra Forgings Limited (An entity part of Systech) and later the name changed to Mahindra CIE Limited.

Rationale for the deal

Mahindra Group

Mahindra and Mahindra Group other Restructuring Deals.

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