SML Isuzu to be renamed as SML Mahindra; board appoints Vinod Sahay as executive chairman

The board of directors of SML Isuzu , which was acquired by Mahindra & Mahindra Ltd (M&M), has approved a change in the name of the company to ‘SML Mahindra Limited’– subject to approvals from Registrar of Companies (ROC), Central Registration Centre, Ministry of Corporate Affairs (MCA) and shareholders of the company.

On Saturday, M&M completed the acquisition of 58.96% stake in SML Isuzu (SML) from Sumitomo Corporation, Japan and Isuzu Motors Ltd, Japan.

Consequent to the acquisition, the board of directors of SML has been reconstituted. The board of Directors of SML has appointed Vinod Sahay, President – Aerospace & Defence, Trucks, Buses & CE – Mahindra Group, as executive chairman of SML Isuzu, effective August 3, 2025.

Sahay is a member of the Group Executive Board of Mahindra Group. In addition to his new role in SML Isuzu Ltd, he will continue to serve as President – Aerospace & Defence, Trucks, Buses and Construction Equipment sector of Mahindra group. He brings 27 years of extensive business leadership experience in Automotive, Aerospace and Defence industry with vast leadership experience in Commercial Vehicles industry. In over 10 years with Mahindra Group, he has previously served as President & Chief Purchase Officer at Mahindra & Mahindra, CEO of Mahindra Truck & Bus and Construction Equipment business, and CEO of Mahindra's Two Wheelers business.

Venkat Srinivas has been appointed as the Executive Director and Chief Executive Officer of SML Isuzu, effective August 1, 2025. Srinivas, in addition to his new role, will continue to serve as the Business Head for Mahindra Truck & Bus (MTB) and Construction Equipment (CE). He brings 35 years of extensive R&D and leadership experience in the Aerospace and Automotive Engineering domains.

In April, Mahindra & Mahindra entered into an agreement to buy a majority stake of 58.96% in SML Isuzu for an aggregate price of ₹555 crore, in an effort to strengthen its presence in the heavy commercial vehicles segment, that includes trucks and buses. As part of the transaction, M&M would also launch a mandatory open offer for the acquisition of up to 26% stake from eligible public shareholders of SML in accordance with the SEBI Takeover Regulations.

According to the terms of the agreement, Mahindra will make an open offer of ₹650 per share in accordance with the SEBI takeover regulations to buy the entire 43.96% stake in SML Isuzu held by Sumitomo Corporation—a promoter of SML—in tandem with acquiring the 15% stake held by Isuzu Motors, the public shareholder of SML. In conjunction with the transaction, Mahindra will also launch a mandatory open offer for acquiring an additional stake of up to 26% stake from eligible public shareholders of SML.

SML Isuzu, incorporated in 1983, currently has a strong presence in the buses segment, with a market share of about 16%. It reported an operating revenue of ₹2,196 crore and an EBITDA of ₹179 crore in FY24. In contrast, Mahindra currently has a 3% market share in the heavy commercial vehicles segment, but has a dominant 54% market share in the sub-3.5-tonne light commercial vehicles segment. With this proposed acquisition, Mahindra plans to double its market share in the segment to 6%—with plans to increase it to 10-12% by FY31 and more than 20% by FY36.