MUMBAI: Mahindra & Mahindra (M&M) has acquired 98.6 per cent shares in Stokes Group of the U.K. from its existing shareholders.

Stokes Group is the largest automotive forging company in the U.K. with state-of-the-art `net shaped forging technology'. The group includes three companies with two manufacturing companies situated at Walsall and Dudley, near Birmingham, U.K. Stokes operates with original equipment manufacturers (OEM) and Tier-I suppliers, its major customers being Koyo Bearings, GWK Group, Land Rover, ZF, Bosch, Benteley, Visteon, Ford and Jaguar.

The turnover of the Stokes Group was 25 million pound sterling (about Rs. 200 crore) for the year ended December 2004.

The acquisition strengthens M&M's Mahindra Systems and Automotive Technologies (MSAT) sector.

Hemant Luthra, President, MSAT, said, "The acquisition offers multiple benefits to MSAT and Stokes shareholders. Customers in Europe can continue to get high quality products from a better-capitalised supplier at economic pricing. Indian customers will get access to world-class technology and rich legacy of experience that the Stokes management team brings to the table. Both will benefit from the design capabilities of Mahindra Engineering Services (MES) that can accelerate product development.

The senior management team of Stokes, led by Ian Young, will continue under the M&M umbrella.

Anand Mahindra, Vice-Chairman and Managing Director, M&M, said, "We believe that the Stokes acquisition demonstrates our commitment to build a world-class business that serves its global customers and enhances value for M&M's stakeholders."

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