Mumbai, April 26, 2025: Mahindra & Mahindra Ltd (“M&M”) announced its agreement to acquire a 58.96% stake in SML Isuzu Ltd. (“SML”) at INR 650 per share, for a total investment of INR 555 crore.
Furthermore, M&M intends to launch an open offer in accordance with the SEBI Takeover Regulations. M&M’s goal with this acquisition is to increase its market share in the commercial vehicle segment above 3.5 tonnes from 3% to 6%, with goals of reaching 10-12% by FY31 and more than 20% by FY36.
SML leads the ILCV Buses segment with approximately 16% market share, reporting operating revenue of INR 2,196 crore and EBITDA of INR 179 crore in FY24.
Dr Anish Shah, Group CEO & MD of the Mahindra Group, shared the announcement, saying, “The acquisition of SML Isuzu marks a significant milestone in Mahindra Group’s vision of delivering 5x growth in our emerging businesses.”.This acquisition is consistent with our capital allocation strategy of investing in high-growth areas with a strong right to win and demonstrated operational excellence.”
The company is known for its profitable operations, lean manufacturing, and strong engineering capabilities. M&M’s strategy is to use SML’s strengths to improve cost, network, brand, manufacturing, talent, and product offerings synergies.
Rajesh Jejurikar, Executive Director and CEO of Mahindra & Mahindra Ltd.’s Auto and Farm Sector, stated, “SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra’s existing offerings in the trucks and buses segment. This acquisition is a critical step towards our goal of becoming a full-fledged, formidable player in commercial vehicles by expanding market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and improving plant utilisation. “We are well-positioned to scale quickly and drive profitable growth.”
M&M will acquire the full 43.96% stake held by Sumitomo Corporation, SML’s promoter, as well as an additional 15% stake from Isuzu Motors Ltd, a public shareholder, for a total consideration of INR 555 crore. M&M will also conduct a mandatory open offer to acquire up to 26% of SML’s eligible public shareholders in accordance with SEBI regulations.
