Header Ads

M&M Teams Up With Mitsubishi To Roll Out Tractors And Heavy Machinery For Agriculture Purpose

Mahindra & Mahindra has signed a definitive agreement to acquire 33% of shares of the Mitsubishi Heavy Industries (MHI) subsidiary, Mitsubishi Agricultural Machinery (MAM). The Indian company will invest $25 mill to acquire this share. The deal is expected to close buy the 1st of October,2015, with the new funding used to increase MAM’s capital base.Tokyo-headquartered Mitsubishi Heavy Industries manufactures heavy machinery. In FY15, the company recorded consolidated sales of JPY 3,992.1 billion ($33 billion). M&M will acquire the stake through a fresh issue of common shares and non-voting or Class A shares, the company said.

MAM produces and sells tractors, combine harvesters, rice transplanters and other agri-machinery. The company had revenues of around $408 million in the year ended March 31, 2015. The partnership will help M&M improve cost competitiveness through joint procurement and optimize the supply chain.

"This will enable strategic growth avenues for Mitsubishi Agricultural Machinery Co Ltd (MAM) through Mahindra USA, China and other international markets, speeding up international expansion. It will also provide a platform for both the companies to leverage technology and product development synergies," said Rajesh Jejurikar, president & chief executive (farm equipment & two wheeler division), M&M.

What MAM brings to India are tractors and harvesters that are lighter and smaller than the Mahindra products and are meant to compliment the agri-machinery that is currently available in the country.

No comments

Powered by Blogger.