M&M to drive ahead on tractor growth, low valuations

Volumes in UVs also expected to rise with new launches next year

Mahindra & Mahindra’s (M&M’s) Rs 800-crore acquisition of Erkunt Tractor and a foundry unit (Erkunt Sanayi) in Turkey is in line with a plan to increase its global presence in farm mechanisation. This is M&M’s second acquisition in Turkey and fourth such deal globally, and will help it achieve the goal of generating half its farm segment revenue from markets abroad, currently 37 per cent.

Turkey is the world’s fourth largest tractor market, with annual sales of 71,000 tractors, wherein Erkunt has a share of six per cent. The Turkish farm equipment market is pegged at $3.5 billion, compared to