Mahindra & Mahindra Ltd (M&M Ltd), part of the USD 19 billion Mahindra Group, headquartered in Mumbai, India, today announced its second foray into Turkey through the acquisition of Erkunt Traktor Sanayii A.S. (Erkunt), the 4th largest tractor brand in Turkey. This transaction is expected to close by the last quarter of calendar year 2017.
This association with Erkunt on the back of the Hisarlar acquisition earlier in the year will help in growing Mahindra's farm equipment business in the strategic market of Turkey. With two strong brands such as Mahindra and Erkunt coming together and with a wider combined product portfolio, this association will offer complete mechanisation solutions to the diverse needs of Turkish farmers, thereby creating a more significant presence in Turkey. The association will also build an export business especially in the neighbouring markets of the Middle East, CIS and Europe.
Commenting on the development, Dr. Pawan Goenka, Managing Director, Mahindra & Mahindra Ltd. said "At Mahindra's Farm Equipment Sector, our strategy is to globalise aggressively and also expand our portfolio to include various new categories of tractors and farm machinery. Turkey is a very important market in our globalisation journey and we wish to participate in its entire agri mechanization landscape. The acquisition of Erkunt will enable Mahindra to expand its footprint in the world's 4th largest tractor market".
Rajesh Jejurikar, President, Farm Equipment Sector, Mahindra & Mahindra Ltd. said, "Erkunt is a strong local Turkish brand that has grown very rapidly over the last decade, by expanding its product range. We look forward to collaborate with the Erkunt leadership team to bring synergy and expand our footprint in Turkey".
Mahindra will also acquire a foundry unit, Erkunt Sanayi A.S., which is a full service provider, from castings to machining. The Foundry Unit focuses on engine blocks, cylinder heads and transmission cases and has a strong customer portfolio including JCB, MAN, Ford and Deutz. The foundry unit had a revenue of USD 47 million during 2016.
Shares of MAHINDRA & MAHINDRA LTD. was last trading in BSE at Rs.1292.85 as compared to the previous close of Rs. 1294.05. The total number of shares traded during the day was 49591 in over 1591 trades.
The stock hit an intraday high of Rs. 1309.7 and intraday low of 1290.2. The net turnover during the day was Rs. 64305314.