Mahindra & Mahindra Ltd announced its foray into Turkey through the acquisition of Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar), a farm equipment company. Source: AFDJ eNews
Under the transaction, which is expected to close by April 2017, Mahindra will acquire a 75.1% equity stake in Hisarlar.
The association will help in growing the farm equipment business in Turkey and Europe.
The balance shareholding will be with European Bank for Reconstruction and Development (EBRD), 18.7%; and the founding Turker family, 6.2%.
Rajesh Jejurikar, President and Chief Executive, Farm Equipment & Two Wheeler, M&M Ltd said: “Hisarlar is a market leader with 45% market share in soil preparation equipment in Turkey. The acquisition of Hisarlar will enable Mahindra to expand its footprint in Turkey and Europe, making this entity a global manufacturing base for various farm implements and tractor cabins”.
Hisarlar, incorporated in 1977, is a key player in the agriculture machinery industry, tractor cabins and components for off highway machinery.
The company has two production facilities in western Turkey and employs a total of about 820 people.
Hisarlar is a leader in the soil preparation category of implements with a 45% market share in Turkey. The company has strong brands in this segment, supported by a distribution network of 85 dealers across Turkey.
Besides agricultural machinery, the company manufactures tractor cabins and industrial components.
Turkey is the largest tractor market in terms of production and sales within Europe. During the period 2009-15, on an average, the tractor market stood at 48,450 units.
Turkey also has a 3% market share in the agri-machinery industry globally.
Agricultural mechanisation in Turkey is growing and the country is also an important market for combine harvesters.
Apart from some imports in harvesters, farm equipment demand in Turkey is primarily met from domestic production. In addition, a significant proportion of agricultural equipment manufactured in Turkey is exported to Central Asia, the Middle East and Africa.