According to media reports,Mahindra Systech is planning a reverse merger of its various group companies into the listed company Mahindra Forgings soon.   
 
 Reports suggest that the company is making progress in setting up this new unified entity. There is also a possibility that the merged entity may enlist a strategic investor.  
 
 The company is awaiting approval from its board of directors and also the consent of respective private equity players (of component firms) to exchange their stakes in different entities for a stake in Systech.
 
 Ernst & Young has been hired by the firm to value the businesses. Systech, since its inception in 2004 has made substantial acquisitions across Germany which includes component firms such as GSA. Jeco,
 Falkenroth, Schneweiss, Stokes in UK, Metalcastello in Italy and Hinoday, Amforge and SAR Transmissions in India.
 
 It has 24 manufacturing plants in Europe and India with around 12, 000 employees. It makes a range of auto components that include pistons, crankshafts, stub axles, hobs, gears, hood and plasma arc, among others.
 
 In November last year, Sanyo Special Steel and Mitsui & Co entered into a definitive agreement with Mahindra Ugine Steel to establish a joint venture for making special steel.
 
 The new entity will have five verticals - forgings, castings, gears, stampings and composites comprising a dozen or more entities operating under the verticals.