Mahindra group
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Revision as of 12:27, 3 November 2017
This is a collection of articles archived for the excellence of their content. |
Overseas ventures
2017: buys 2nd Turkish tractor plant, foundry
Tractor major Mahindra & Mahindra has acquired its second Turkish tractor asset. In a deal size worth around $117 million, M&M acquired 100% in Erkunt Traktor as well as 80-100% stake in subsidiary foundry Erkunt Sanayi.Erkunt is the fourth largest tractor company in Turkey and has a revenue of $88 million, while the foundry has a revenue of $51 million. This is the second Turkish acquisition for M&M after Hisarlar. “We have agreed to an enter prise valuation of $76 million for the tractor company and $51 million for the foundry . This is an outright cash purchase from the founder Armagan family and this acquisition is primarily for the Turkey market. Its pro duct range also fits in because our tractor range in India is up to 65HP while Erkunt's range is between 55-110HP ,“ said M&M MD Pawan Goenka.
As for the foundry , it is 35% owned by the tractor company and feeds its requirements. “It is a good state-of-the-art plant with an export focus and 80% of its revenue comes from exports,“ said Goenka.
The latest acquisition is part of the company's larger game plan in the tractor and farm implements business with an eye on becoming one of the top-3 global players in the next eight-10 years. “To grow to that scale, we need to look outside India for additional tractor market share and get technology andor market foothold in key global geographies,“ said Goenka. Turkey is the world's fourth biggest tractor market.
