Mahindra & Mahindra teams up with Mitsubishi: Know why

Narendra Modi’s ‘Make in India’ is making resonance across all sectors. After telecom, it’s now time for automobile to show its strength. As per a news report by The Economic Times, Mahindra & Mahindra has signed a definitive agreement to acquire 33% stake in Mitsubishi Agricultural Machinery Co. for 25 million dollars or Rs 159.24 crore.

World’s largest tractor maker by volumes will now acquire 33% voting stake in the subsidiary of Mitsubishi Heavy Industries through fresh issue of common shares and Class A (non-voting) shares of Mitsubishi Agri Machinery.

The ET report further says, having earned revenues of $408 million this financial year, Mitsubishi Agricultural Machinery is a full range agri machinery company producing and selling tractors, combines harvesters, rice transplanters and other agri-machinery products.

"This will enable strategic growth avenues for Mitsubishi Agricultural Machinery through Mahindra USA, China and other international markets, thereby speeding up international expansion," Rajesh Jejurikar, president & chief executive of farm equipment and two wheeler division of Mahindra & Mahindra told the financial daily.


Not only would both the companies develop the tractor and agri-machinery space together, this partnership would enable both the companies to improve cost competitiveness through joint sourcing and optimising the supply chain.


The new partnership will help both companies to jointly develop products and address global opportunities in the tractor and agri-machinery space. In addition, the partnership will enable both the companies to improve cost competitiveness through joint sourcing and optimising the supply chain.