Mahindra & Mahindra Ltd., one of the largest automotive company in India, has signed a binding agreement to acquire the business of G.R. Grafica Ricerca Design S.r.l (GRD), an Italian auto designing and engineering company for an undisclosed amount.

The company would acquire the business through a subsidiary to be newly incorporated and would be named as Mahindra Graphic Research and Design (MGRD).

Pawan Goenka, President, Mahindra's automotive unit, said, “the acquisition will not only help us strengthen our existing design capabilities but will help us emerge as a global auto-design powerhouse.'

The Complementary capabilities between M & M and GRD will enhance product development capabilities and provide a solid European footprint,' he added.

GRD is one of the leading companies based out of Turin, Italy, which executes designing, body engineering and feasibility and styling work for leading auto OEMs and designing companies based out of Europe and Asia. The company had earned total revenue of about 6 million euros ($8.8 million) in 2007.

While India-based M&M manufactures Jeep type vehicles, petrol industrial engines, industrial process control instruments and flow meters.

The current GRD management team will continue to drive all operations for MGRD. The transaction is expected to close by end of January 2008, a release said.

At 2:45 pm, the stock was quoting at Rs 834, up by 2% or Rs. 20, as compared to previous close of Rs. 814. It touched an intraday high of Rs. 843 and low of Rs. 791.