Its last year that Mahindra and Mahindra group has made with China joint venture for tractor business, Mahindra Yueda Yancheng Tractor Company, by selling entire stake for RMB 82 million (nearly Rs 80 crore).The Indian conglomerate had plans to independently operate in China.
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Mahindra and Mahindra NSE -1.43 % holds 51 per cent stake in the Chinese JV through its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) Limited.
Mahindra Overseas Investment Company (Mauritius) Limited (MOICML) has agreed to sell its entire shareholding of 51 per cent in Mahindra Yueda Yancheng Tractor Company Ltd (MYYTCL), China. Upon receipt of requisite regulatory approvals and completion of other formalities, MYYTCL has ceased to be a subsidiary of MOICML.
Mahindra said that through recent acquisitions it has expanded farm machinery product portfolio beyond tractors to rice transplanters, harvesters etc.
China is an important part of Mahindra’s globalization agenda since it is one of the largest markets for farm machinery along with tractors, Rajesh Jejurikar, president for the company’s farm equipment business.
This time the company will be focusing on much larger market apart from tractors.The China reentry is to enhance the international business from 35% to much higher.The global farm machinery business is valued at about $94 billion, which is 50% more than the pure tractor business, according to M& M,is expected to grow faster than the tractor business and may almost double in the next 5-7 years to $180 billion.
Krishi Jagran/New Delhi