M&M, Pininfarina deal not saleable: Prateek Agarwal, ASK Investment Managers

Prateek Agarwal, Business Head & CIO, ASK investment Managers, gives his ideas on Mahindra and Mahindra acquiring Italian design manufacturing company Pininfarina.

ET Now: I want your opinion on Tech Mahindra and M&M jointly acquiring a stake in Pininfarina. Given the clampdown on diesel vehicles right now that is so far only restricted to New Delhi, - it might get extended to the rest of the country as well - what could Pininfarina really bring on board for Mahindra? Do you think their strategy is now to move into electrical cars and greener fuels?

Prateek Agarwal: We have not had a chance to speak to the management about this. Pininfarina is a marquee name, a global brand. But we do not believe that this deal is extremely saleable. It is an interesting business with a lot of engineering inputs but scalability has always been in doubt.