Mahindra buys Chinese tractor maker

Mahindra and Mahindra has pushed deeper into the Chinese market with the purchase of a 51 percent stake in a joint venture with China's third largest tractor maker Yangcheng Tractor on August 18. The tractor related assets of Yangcheng, which are valued at US$ 50 million, would be transferred into the new JV with Mahindra. The Indian company's Farm Equipment Division will invest US$ 26 million in this new venture through its subsidiary company, Mahindra Overseas Investment Company (Mauritius) Ltd. This is the second tractor venture for Mahindra in China, with the existing venture called Mahindra China Tractor Company Ltd. According to Anand Mahindra, vice chairman & managing director, Mahindra Group, "I have always believed that India and China have unique and complementary strengths, which, when pooled together, can take on the world. We already have a successful joint venture with Jiangling Tractor Company. The JV between M&M and Yancheng Tractor will further combine Indian entrepreneurial and managerial skills with Chinese competitiveness and efficiency. I am sure this formidable combination will contribute substantially towards realising our ambition to be the leading tractor manufacturer in the global market."