Mahindra & Mahindra will acquire a 58.96% stake in commercial vehicle manufacturer SML Isuzu for ₹555 crore. Under the agreement, Mahindra will purchase the entire 43.96% stake held by Sumitomo Corporation, the current promoter of SML Isuzu, along with an additional 15% stake from Isuzu Motors Ltd, a public shareholder.
In line with SEBI Takeover Regulations, Mahindra will also make an open offer to acquire an additional 26% stake in SML Isuzu.
Anish Shah, CEO and Managing Director of Mahindra Group, stated that the acquisition represents a key step in the Group’s strategy to significantly expand its emerging business portfolio. He explained that the move aligns with the company’s investment approach, which focuses on sectors demonstrating strong growth potential and operational strength.
Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sector at Mahindra, said that SML Isuzu adds a respected brand with a loyal customer base and a complementary product range to Mahindra’s current truck and bus offerings.
He emphasized that the deal strengthens Mahindra’s position in the commercial vehicle sector by broadening market presence, increasing production efficiency, and consolidating supply and dealer networks. The acquisition, including the open offer, is subject to regulatory approval from the Competition Commission of India and is expected to be finalized by 2025.
Founded in 1983, SML Isuzu operates in the truck and bus market segment. Established in 1945, the Mahindra Group is a leading global federation of companies, employing over 260,000 people across more than 100 countries. In India, it holds strong leadership positions in farm equipment, utility SUVs, information technology, and financial services, and is recognized as the world’s largest tractor manufacturer by volume. The Group also has a significant footprint in sectors such as renewable energy, agriculture, logistics, hospitality, and real estate.
Mahindra is committed to global leadership in environmental, social, and governance (ESG) practices, with a focus on promoting rural prosperity and improving urban living. Its mission is to create lasting, positive impact for communities and stakeholders, empowering them to progress and thrive.
