Mahindra to Inject Rs 471 Crore into Turkey Foundry Before Sale, Closing Pushed to August

Mahindra & Mahindra will put in nearly double the cash it first planned before selling its Turkey foundry business, and the sale will now close in mid-August instead of by the end of July.

The company is exiting Erkunt Foundry, a small Turkish unit it holds through overseas subsidiaries. It agreed to sell the business in April and has now changed the terms, it told stock exchanges on 30 June.

Under the new terms, Mahindra's Mauritius arm MOICML will inject Turkish Lira 2.26 billion, about Rs 471 crore, to pay off the unit's debt and keep it running until the sale is done. In April, it had committed Turkish Lira 1.2 billion, or about Rs 256 crore.

The buyer, Turkish engineering firm Hisarlar Makina Sanayi ve Ticaret, along with shareholders Oguzhan Sahinkaya and Bunyamin Sarioglu, will separately put in USD 10 million, about Rs 95 crore. That commitment was not in the original deal.

The bigger infusion follows a slide in the unit's finances. Erkunt Foundry's net worth had dropped to nil by 31 December 2025, from Rs 382.29 crore nine months earlier, Mahindra disclosed in April.

The price Mahindra gets for the business is unchanged at Turkish Lira 1,00,000, about Rs 2.13 lakh. Completion is now expected by 15 August, against the earlier date of 30 July.

The sale covers the entire 99.04 per cent stake that MOICML and its subsidiary Erkunt Traktör hold in Erkunt Sanayi Anonim Şirketi, known as Erkunt Foundry and a step-down subsidiary of Mahindra. The company has called the exit part of its capital allocation plan and a continuation of a portfolio review it began earlier in the year.

Erkunt Foundry brought in revenue of Rs 821 crore in the year to 31 March 2025. After stripping out dealings within the group, it added Rs 771.69 crore, or 0.49 per cent of Mahindra's consolidated turnover.

Mahindra has said the sale will not affect its tractor business in Turkey, which stays within the group.