Revision as of 18:41, 3 November 2017

Overseas ventures

2017: buys 2nd Turkish tractor plant, foundry

Nandini Sengupta, $117M DEAL - M&M buys 2nd Turkish tractor plant, foundry, September 21, 2017: The Times of India

 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.

2017: MRR Development (real estate, Manhattan)

Nandini Sengupta, Mahindra sets up Manhattan realty co, November 3, 2017: The Times of India

Anand Mahindra, chairman of the $19-billion Mahindra Group, is investing in US real estate in his personal capacity . He is partnering with Rotem Rosen, a New York real estate owner and developer and Jerry Rotonda, who has been CFO of Deutsche Bank, WM Americas. The trio are setting up a real estate firm called MRR Development which will focus on real estate projects in Manhattan.

This investment has nothing to do with Mahindra Group. When contacted, the group shared a statement confirming the development: “MRR Development, headquartered in Manhattan, is a premier full service real estate powerhouse, founded personally by Anand Mahindra through his family office, and will focus on the identification, acquisition, development, conversion & sale of real estate speci fically in Manhattan, reflecting the fundamental analysis of long-term drivers of capital appreciation.“

It added, “MRR will systematically target development projects that deliver value and quality to buyers. The three partners have delivered a “strong risk-adjusted track record of returns in their re spective careers by relying on their investment discipline and sourcing capabilities.“

Forbes magazine values Anand Mahindra's net worth at $1.55 billion. He has earlier made similar individual investments into Epic Channel, partnering with Mukesh Ambani. Three years later, Ambani reportedly sold his stake in Epic last November.

Mahindra has also made several investments in startups including in companies like SheThePeople, LocalCircles India and more recently Thinkerbell Labs and the Naandi Education Support & Training (NEST).