Moneycontrol
Last Updated : Mar 11, 2018 05:24 PM IST | Source: PTI

Mahindra Group's subsidiary Pininfarina expects revenues to double to $1 bn in 3-5 yrs

Tech Mahindra currently owns around 76 percent stake in the Turin-based firm which is known for design work for iconic brands such as Ferrari, Maserati and Rolls-Royce

Ferrari have bucked the global economic crisis squeezing Formula One by agreeing a sponsorship deal with this company. For the first time in history an Indian brand will appear on the Ferrari F1 car next season. The deal was made possible because of this companies association with the latter’s parent company in India. Which company?
Ferrari have bucked the global economic crisis squeezing Formula One by agreeing a sponsorship deal with this company. For the first time in history an Indian brand will appear on the Ferrari F1 car next season. The deal was made possible because of this companies association with the latter’s parent company in India. Which company?

Italian automotive design firm Pininfarina is eyeing USD 1 billion in revenues, in partnership with Tech Mahindra's engineering division, over the next 3-5 years.

The two companies together generate around USD 500 million a year from their design and engineering business.

Pininfarina CEO Silvio Pietro Angori expects the venture to grow to USD 1 billion in 3-5 years. "When I say USD 1 billion, it is combining the engineering services of Tech Mahindra with our own business. So that is feasible," he told PTI on the sidelines of Geneva Motor Show.

Tech Mahindra currently owns around 76 percent stake in the Turin-based firm which is known for design work for iconic brands such as Ferrari, Maserati and Rolls-Royce.

At present, Pininfarina generates around 10 percent of the revenues from Italy, 30 percent from Europe, and the remaining 60 percent from rest of the world.

In India, the company is working with "no more than two clients" currently, Angori said.

Pininfarina, which became a part of the Mahindra group in late 2015, has been able to regain financial stability and is now looking to strengthen its non-automotive businesses as well.

In India, it is eyeing opportunities in sectors like railways, real estate and infrastructure development, Angori said.

When asked about Pininfarina's over two-year association with Mahindra group, Angori said the Indian firm has helped the company regain financial stability besides helping it to reach out to clients which were earlier out of reach.

"Mahindra group has given us financial stability and it has led us to unlock so much of the potential we had," Angori said.

Both the companies have the same values and founding principles and this has helped Pininfarina flourish, he added.

"We have around 110 clients and that number has increased in the last two years by about 20 percent," Angori said.

Commenting on the synergies with Tech Mahindra, he said that while Pininfarina does the physical design, the digital part of the job is taken care by the Tech Mahindra.

"No other company in the world has the capability like us," Angori said.

Mahindra group had announced the acquisition of Pininfarina in late 2015 for an overall outgo of over EUR 50 million after months of negotiations.
First Published on Mar 11, 2018 05:20 pm
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