Financial Daily from THE HINDU group of publications
Tuesday, Jul 05, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jul 05, 2005 |
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Corporate
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Overseas Investments M&M plans to bid for tractor company in Romania
Neha Kaushik
New Delhi , July 4 INDIA'S largest tractor manufacturer Mahindra & Mahindra is eyeing the Romania based Universal Tractors Ltd as part of its global expansion plans. The company will be submitting a bid for acquiring control of Universal Tractors, which is owned by the Romanian Government. Confirming the development, Mr Anjanikumar Choudhari, President, Farm Equipment Sector, Mahindra & Mahindra (M&M), told Business Line, that the acquisition would give M&M a foothold in the Eastern European and West Asian tractor markets. "Universal Tractors' flagship brand Universal is a very well respected brand and enjoys a good market share in the Eastern bloc, Iran, Egypt and Pakistan. The company currently has a capacity of producing 15,000 tractors and 18,000-20,000 engines per annum," Mr Choudhari said. Further, as M&M does not have a facility in Europe yet, Universal Tractors could also be used as a low cost supply base to the CIS states and Western Europe as well, with Romania set to become a member of the European Union in 2007. This will not be M&M's first attempt to acquire a tractor company in Europe. The company had in 2003 submitted a bid to acquire the Finland-based Valtra Inc, but had lost out to tractor major AGCO. M&M has been on a quest to emerge as a leader in the global tractor market. Recently, the company formed a joint venture Mahindra (China) Tractor Co Ltd in China, in which it has 80 per cent stake with the balance being held by the Jiangling Motor Co Group. The joint venture has a production capacity of 12,000 tractors per annum.
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