Mahindra Group acquires subsidiary Hisarlar’s far equipment unit
Mahindra and Mahindra, the farm equipment major has restructured/ reshuffled business in Turkey by obtaining the entire agriculture machinery business of its subsidiary Hisarlar while relinquishing its stake in other businesses of the Turkish company.
M&M said in a statement on Wednesday, as part of the reshuffle, M&M subsidiary Erkunt Traktor Sanayi A.S. will acquire the whole agricultural machinery business of Hisarlar including select assets, intellectual property (IP) and brand use rights.
For the time being, Erkunt and another Mauritius-based subsidiary of M&M put up for sale their accumulated stake of 94.3% in Hisarlar for 6.6 million Turkish Lira (Rs 5.7 crores). With this, the Mahindra Group will exit Hisarlar’s metal fabrication business.
Hemant Sikka, president of the farm equipment sector at M&M said in a press statement that, we have held onto the key business of agricultural machinery and all the IP built over the years. This makes Erkunt Traktor a full variety farm equipment OEM (original equipment manufacturer), certifying that our dealers in Turkey and customers in Europe and other international markets continue to be serviced.
Mahindra had acquired a 75.1% stake in Hisarlar in 2017 to the incursion into the Turkish and European markets.