In a reverse deal, Mahindra Overseas Investment Company (Mauritius) Limited (MOICML), a wholly-owned subsidiary of the Company, and Erkunt have agreed to sell their entire stake of 94.3% in Hisarlar, for an aggregate consideration of Turkish Lira 6.6 million (equivalent to approx. Rs5.6cr).
Hemant Sikka, President, Farm Equipment Sector, M&M Ltd. said, “Through this transaction, we have retained the core business of Agricultural Machinery and all the IP built over the years. This makes Erkunt Traktor a full range Farm equipment OEM, ensuring that our dealers in Turkey and customers in Europe and other international markets continue to be serviced. It is in line with our capital allocation and in perfect harmony with our purpose of ‘Transform Farming, Enrich Lives'."
As part of restructuring its subsidiaries in Turkey, Mahindra Group will exit Hisarlar’s Metal Fabrication business. While, Erkunt will acquire the Agricultural Machinery business of Hisarlar, including select related assets, Intellectual Property and Brand use rights. Mahindra Group, through Erkunt will continue to stay invested in the core business of Agricultural Machinery products ranging from soil tillage to post-harvest segments. In addition, Erkunt will acquire select cabin manufacturing assets of Hisarlar.
Mahindra continues to establish itself as a global tractor maker with a full line of farm machinery business through acquisitions and new manufacturing units, underpinned by the requisite brand and sales infrastructure as well as leveraging its global network for product development.
For over 3 decades, Mahindra has been India’s unprecedented No. 1 tractor brand and the world’s largest tractor manufacturer by volume. With a presence in over 50 countries, Mahindra has leveraged its quality, as the only tractor brand in the world to win both the Deming Award and the Japanese Quality Medal.
At around 1.14 pm, M&M was trading at Rs754.50 per piece down marginally on Sensex.