Mahindra & Mahindra has won the race to acquire Punjab Tractors (PTL) which will see its market share zoom to 45 percent giving it an unassailable lead in this segment.
The company bought out 43.3 percent stake in PTL for a little over Rs 950 crore and is now preparing to make the 20 percent open offer to complete the transaction. This will also extend to two group companies. M&M along with its subsidiary Mahindra Holdings and Finance agreed to acquire the stake from Actis and the investment companies of the Burman family.
According to a press release, PTL is a significant player in the tractor industry, having been in operations since 1974. Its Swaraj brand of tractors and farm equipment enjoy strong brand loyalty.
President, farm equipment sector, M&M, Anjanikumar Choudhari said, “This acquisition will add a well-respected brand, Swaraj, and a strong product range to our portfolio. It will further strengthen our market position in different regions in India.
“Some of the PTL models have clear opportunities in overseas markets in which M&M operates. The manufacturing capacities of Punjab Tractors fit well with our future plans, and its North India vendor base will provide us opportunities to derive good benefits from sourcing synergy.”