According to news reported by moneycontrol.com Mahindra & Mahindra (M&M) is selling its entire stake in Engines Engineering back to its original promoter Alberto Strazzari. M&M is selling its entire stake at good amount of premium which it bought in the year 2008 with the aim to strengthening its R&D capabilities for Mahindra Two Wheelers. Engines Engineering is the same company which has done work of fixing Sattlio’s gear box.
Engines Engineering is Europe’s number One motorcycle designer. It provides full range of activities starting from a basic idea on a blank sheet to a finished product on the road. It is a one stop solution for conception, design, styling, online assembly, industrialization and marketing. It’s client name includes some of the prestigious name in motorcycling world like Honda, Yamaha, Ducati, Benelli, Gilera etc.
According to reports the reason for stake sell is Engine Engineering’s client base, which is not comfortable with Engines Engineering close proximity with Mahindra two wheelers and Mahindra Engineering services. They questioned the possibility of Intellectual property rights (IPR) infringement. However, M&M said that it’s baseless fear and the IPR are protected with adequate firewalls. Engines Engineering will now act as independent advisor and consultant to M&M.