Bangalore: Mahindra & Mahindra Ltd today acquired a majority 55.2-per cent stake in Reva Electric Car Co Ltd, which will now be renamed Mahindra Reva Electric Vehicle Co Ltd.
For M&M, which has been working on developing diesel-hybrid technologies, the acquisition will bring in Reva's EV technology and skills, while Reva, under a new corporate umbrella, will have access to M&M's vast distribution and sales network.
M&M's stake in the Bangalore firm will be acquired through a combination of equity purchase from the promoters and a fresh equity infusion of over Rs45 crore into the company. The buyout makes the Mahindra group a strong global player in the electric vehicle space.
Announcing the acquisition, Anand Mahindra, vice chairman and managing director, Mahindra & Mahindra, said, ''With issues such as climate change and carbon footprint taking centre stage globally, eco-friendly transportation becomes the need of the hour. Mahindra already has an established sustainable mobility solutions programme and our association with Reva will only help us further expand our green footprint both in India and overseas.''
After the buyout, the board of Reva will be re-constituted under the chairmanship of Dr Pawan Goenka, president of M&M's automotive and farm equipment sectors.
The new board would include five nominees from Mahindra & Mahindra, two from the Reva founder Chetan Maini's family, and one from AEV LLC, California, co-founders of Reva.