Mahindra Enters Turkey With Its Tractor Business

By Carandbike Team

1 mins read

Published on January 20, 2017

Highlights

Mahindra has acquired Turkey-based farm equipment company Hisarlar
Mahindra now owns 75.1 per cent equity stake in Hisarlar
Mahindra will make a fresh investment of nearly Rs. 130 crore in Hisarlar

Mahindra and Mahindra, the leading utility vehicle manufacturer today announced the foray of its farm equipment business into Turkey. For its latest venture, the home-grown manufacturer has acquired ownership stakes of a Turkey-based farm equipment company 'Hisarlar Makina Sanayi ve Ticaret Anonim Sirketi' or just 'Hisarlar'. Currently, Turkey is considered to be amongst the largest farm equipment markets globally and could be a huge stepping stone for Mahindra Farm Equipment to expand its global footprint. Mahindra's tractor business currently has its presence in several Asian, African, South American, and East European countries. According to the information shared by Mahindra and Mahindra, the company has acquired a 75.1 per cent equity stake in Hisarlar and the deal is expected to close latest by April 2017. As for the remaining stakes, Mahindra tells us that the balance shareholding will be divided between the European Bank for Reconstruction and Development (EBRD) (18.7 per cent); and the founding Turker family (6.2 per cent). Mahndra Arjun Nuvo Furthermore Mahindra has announced that it will be making an investment of nearly Rs. 130 crore in Hisarlar as fresh equity investment, which will give the company the 75.1 per cent equity stake in Hisarlar. Commenting on the company's latest acquisition, Pawan Goenka, Managing Director, Mahindra & Mahindra said "Mahindra is the world's No 1 tractor company by volume, with an on-ground presence in India, USA, China and Japan, besides many other export markets. Our strategy going forward is to globalise aggressively and also expand our portfolio to include various new categories of farm machinery. This acquisition is an important milestone in our globalisation journey" As for the company itself, incorporated in 1977, Hisarlar has been prominent player of agriculture machinery industry, tractor cabins and components for off-highway machinery in Turkey. The company has been owned primarily by the Turker family with equity participation from Darby, a private equity fund which is part of the Franklin Templeton Group, and the European Bank for Reconstruction and Development (EBRD), a leading institutional investor in Turkey. "Hisarlar is a market leader with 45% market share in soil preparation equipment in Turkey. The acquisition of Hisarlar will enable Mahindra to expand its footprint in Turkey and Europe, making this entity a global manufacturing base for various farm implements and tractor cabins," said Rajesh Jejurikar, President and Chief Executive, Farm Equipment & Two Wheeler, Mahindra and Mahindra.