Mahindra & Mahindra recently launched its Chinese operations through Mahindra (China) Tractor Co Ltd, a JV between M&Ms 100 per cent subsidiary, Mahindra Overseas Investment Co (Mauritius) Ltd (MOICML) and Jiangling Motor Co Group (JMCG). Mahindra (China) Tractor Co Ltd acquired the tractor manufacturing assets from Jiangling Tractor Company, a -subsidiary of JMCG. The plant, located at Nanchang in South Central China, has a production capacity of 12,000 tractors per annum. Anand Mahindra, Vice Chairman and MD, M&M, handed over the first tractor produced in the factory under the new JV to Nanchang Mayor Li Douluo. Another tractor, an FS 250, was given to a local farmer, Wan, Speaking on the occasion, Anand Mahindra said, "This strategic venture takes us one step closer to our ambition of becoming the worlds number one tractor manufacturer. Our combined forces with cost/quality advantage would open new markets in our quest for global dominance."
Mahindra has 80 per cent stake in the JV entity, and is investing US $8 million out of the estimated total investment of USD 10 million. The balance 20 per cent is held by JMCG. JMCG is a leading group in tractors and automotive business in Nanchang, Jiangxi province of China. The state owned enterprise, with a turnover of US $700 million, already has JVs with auto majors like Ford and Isuzu for their automotive business. Mahindra (China) Tractor Co Ltd would cater to the domestic market with 18 to 33 HP under the Fengshou brand and 60 HP tractors under the Mahindra brand.
The plant would also export tractors to America, Europe and India to begin with. The ten-member board would consist of Mr. Anand Mahindra and seven others from M&M and 2 members from JMCG. Avinash Datta from M&M would head the venture as Managing Director, while Qi from JMCG would be the General Manager. Cashing-in on its huge success in the field of tractors in the US, Mahindra recently launched operations in Australia and Serbia.
Posted On : 8/22/2005 3:58:24 PM