Indian firm Tech Mahindra mulls merger with Mahindra Engineering
Tech Mahindra is mulling over a merger with Mahindra Engineering Services. The technology services company announced the potential merger in a Bombay Stock Exchange filing. This was according to a report published by The Economic Times.
Mahindra Engineering is a unit of the USD16.5-billion Mahindra Group. At present, the firm employs about 1,300 people. The said unit would be merged with the integrated engineering services department of Tech Mahindra. The latter employs about 3,000 workers, the report said.
The revenues of the Tech Mahindra division were not disclosed. Earlier this month, Chief Executive Officer CP Gurnani told The Economic Times that the firm was considering adding more offerings to its engineering services. The company will hold a board meeting on Friday to discuss the potential merger, said the report.
Mahindra Engineering Services caters to automotive companies such as Renault-Nissan, Honda, GM, McLaren, and Bentley. Engineering services is a fast developing sector in the outsourcing industry, The Economic Times reported.
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