Mahindra Farm Equipment Strengthens Its Position In Turkey; Invests In Erkunt Traktor Sanayii

Indian automotive manufacturer Mahindra & Mahindra Ltd on Wednesday (20 September) announced its second foray into Turkey through the acquisition of Erkunt Traktor Sanayii. 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.

The association will also build an export business especially in the neighbouring markets of the Middle East, CIS and Europe.

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, 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 $47 million during 2016.