Mahindra & Mahindra Ltd.

Mahindra & Mahindra (M&M) has entered into a strategic partnership with Mitsubishi Heavy Industries (MHI) in the field of agricultural machinery. Under the definitive agreement signed between both the parties, Mahindra will invest JPY 3 billion amounting $25 million for acquiring 33% voting stake in MHI subsidiary, Mitsubishi Agricultural Machinery Company (MAM) through fresh issue of common shares and Class A (non-voting) shares of MAM. The deal is expected to close by October 1, 2015 with the new funding to be used to increase MAM’s capital base.

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

Mitsubishi Agricultural Machinery is a full range agri-machinery company producing and selling tractors, combine harvesters, rice transplanters and other agri-machinery. It had revenues of approximately JPY 50 billion amounting $408 million in 2014-15.