M&M eyes rich harvest for its tractors from foreign fields

Wednesday 10th April, 2019

Article Details
Publication  The Hindu Business Line
Source  Bureau
CCM  72.67
Edition  Ahmedabad
Supplement   NA
MAV  66,099
Language  English
Page  1, 5
Circulation  2,299

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EYEING FOREIGN LANDS Mahindra & Mahindra is aiming to garner 50&% of its tractor revenue from overseas, says Pawan Goenka, Managing Director p5 M&M eyes rich harvest for its tractors from foreign fields Open to acquisition in farm space, says MD Goenka KR SRIVATS New Delhi, April 9 Mahindra & Mahindra, the largest seller of tractors in the world by volumes, expects 50 per cent of its overall tractor revenue to come from locations outside India in the next 5-7 years. At present, only about 33 per cent of annual tractor revenue comes from locations abroad. In the next 5-7 years, we should be at 50:50 mix between domestic and overseas share of revenues, Pawan Goenka, Managing Director, Mahindra & Mahindra, told BUS inessLine on the sidelines of AIMAs 5th National Leadership Conclave here. This (50:50 mix) will be achieved through part organic and part inorganic moves, he said, adding that the aim is fairly ambitious. On farm equipment space, Goenka said Mahindra & Mahindra was open to acquisitions. In farm equipment, all the technologies, acquisitions and new marKets we enter are focused om fitting ourselves into farms that are less than 50 hectares. The focus will be to plumb deep in existing markets rather than spread ourselves too thin. Focus on auto segment On the automotive front, Mahindra & Mahindra sees its passenger vehicles plant go operational in Sri Lanka in the next two months. Mahindra & Mahindra will be the first mdian OEM (original equipment manufacturer) to set up a passenger vehicle plant in Sri Lanka, according to Goenka. When asked about the recent slowdown in automobile sales in the Imdian market, Goenka expressed the confidence that the curPawan Goenka, MD, Mahindra & Mahindra rent demand slowdown will get reversed in the coming days. AS far as investments goes, Goenka said the company would not shy away or compromise on investing in India. We will also look at opportunities (for investments) outside India, Goenka said. Global markets He said Mahindra & Mahindra is now focused on consolidating its presence in markets where it already has a presence. Our thrust will be in markets where we have good presence already through auto, tractors or Tech Mahindra. We will look to take our other bUS inesses to do piggyback riding on brands already established. Mahindra Finance, solar, steel trading could be some examples of such other businesses, he said. In the last two years, Mahindra & Mahindra has expanded its global footprint significantly, Rather than sending and selling tractors and automobiles from India, this group has started doing CKD operations in many parts of the world. While Phase-l was all about establishing ourselves in markets, Phase-II is about investing in markets in terms of local presence in both offices and manufacturing. We will continue with our focused Phase-Il approach, he said.