TOKYO and MUMBAI, India, May 21, 2015 /PRNewswire/ -- Mitsubishi Heavy Industries Ltd. (MHI), headquartered in Tokyo, and Mahindra & Mahindra Ltd. (M&M), part of the Mahindra Group headquartered in Mumbai, today entered into a strategic partnership in the agricultural machinery field. Under the definitive agreement signed today, Mahindra will invest USD $25 million for acquiring a 33% voting stake in MHI subsidiary Mitsubishi Agricultural Machinery Co. Ltd. (MAM) through fresh issue of common shares and Class A (non-voting) shares of MAM. The deal is expected to close by October 1, 2015, with the new funding to be used to increase MAM's capital base.
The agreement was signed by Kazuaki Kimura, President and CEO, MHI Machinery, Equipment & Infrastructure, Katsumi Tottori, President, MAM and Rajesh Jejurikar, President & Chief Executive (Farm Equipment & Two Wheeler), M&M.
This deal reaffirms Mahindra's commitment to the North American market by formalizing its relationship with Mitsubishi, which has supplied tractors to Mahindra USA for the past 12 years.
Mahindra is part of the USD $16.5 billion Mahindra Group's Automotive and Farm Sector - the #1 selling tractor company in the world, based on volumes and the only tractor manufacturer in the world to win the industry's top two quality awards – the Deming Application Prize and the Japan Quality Medal, from the Union of Japanese Scientists and Engineers. Mitsubishi Agricultural Machinery is a full range agri-machinery company producing and selling tractors, combine harvesters, rice transplanters and other agri-machinery.
Mani Iyer, President – Mahindra USA, Inc., stated, "We are honored to see our relationship with Mitsubishi evolve from that of a key supplier into a strategic global alliance. The coming together of these two global corporations will allow us to better serve our customers."
Commenting on the partnership, Kazuaki Kimura, President and CEO, MHI Machinery, Equipment & Infrastructure, "It is an honor for us at Mitsubishi to welcome Mahindra, who is the largest tractor manufacturer globally by volumes as a partner to Mitsubishi Agricultural Machinery. Today's signing will only build upon the wonderful relationship which both companies have shared for over a decade. I am sure that the commitment and expertise of both of the companies will open a new horizon to the business globally."
Speaking on the alliance, Rajesh Jejurikar, President & Chief Executive (Farm Equipment & Two Wheeler Division), M&M said, "It is a matter of pride for us to have signed this alliance today which is a 'Win-Win' for the agricultural machinery businesses of both companies. This will enable strategic growth avenues for Mitsubishi Agricultural Machinery (MAM) through Mahindra USA, China and other international markets thereby speeding up our international expansion. It will also provide a platform for both the companies to leverage Technology and Product Development synergies."
Cleo Franklin, Vice President – Marketing & Strategic Planning, Mahindra USA, Inc., stated, "MUSA has a long relationship with Mitsubishi Agricultural Machinery and since 2003 we have worked together to develop products and solutions to meet our customer's needs in North America. The strength of our partnership will allow us to take the next steps towards our goal of becoming one of the Top 50 Most Admired Global brands by continuing to focus on our Customer-First and Dealer-First philosophies."
The new partnership will help both companies to jointly develop products to address global opportunities in the tractor and agri-machinery space. In addition, the partnership will enable MAM and Mahindra to improve cost competitiveness though joint procurement and optimize the supply chain.
About Mahindra USA
Mahindra USA (MUSA) is part of the USD $16.5 billion Mahindra Group's Automotive and Farm Sector - the number one selling tractor company in the world, based on volumes and the only tractor manufacturer in the world to win the industry's top two quality awards – the Deming Application Prize and the Japan Quality Medal, care of Union of Japanese Scientists and Engineers.
Houston, Texas based Mahindra USA (MUSA) is a wholly owned subsidiary of Mahindra & Mahindra Ltd. and began selling tractors in the USA in 1994. MUSA has since grown rapidly due to high customer satisfaction levels and strong customer referrals. Mahindra USA has five distribution points in North America to help meet the needs of its customers and the growing demand for its products.
Mahindra's professional-grade tractors range from 22 HP – 100HP – and include the revolutionary new Max series tractors. The Mahindra Max 24 leads the way in the sub-compact market and feature true tractor performance and capabilities. The Mahindra Max 24 is joined by the industry's first mid-compact tractor, the Mahindra Max 26 XL, which has compact tractor performance and versatility in a near compact tractor size. All Mahindra Tractors are built with heavy-duty components that allow them to outperform other tractors in their class and are designed to provide consumers with the ability to push more, pull more and lift more, so they can do more, in less time.
To learn more about Mahindra USA, please visit www.mahindrausa.com.
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 3,992.1 billion yen in fiscal 2014, the year ended March 31, 2015. MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space systems and air-conditioning systems.
For more information, please visit the MHI website (http://www.mhi-global.com/index.html).
About Mitsubishi Agricultural Machinery
Mitsubishi Agricultural Machinery Co., Ltd. (MAM), headquartered in Matsue, Shimane, is a fully owned subsidiary of Mitsubishi Heavy Industries, Ltd. with consolidated sales of 35.3 billion yen in fiscal 2012, the year ended March 31, 2013. MAM is manufacturing and sales diverse lineup of agricultural machinery such as "tractors," "power tillers," "planters," "combine harvesters," and "plant and facility" for agriculture markets in Japan and worldwide.
For more information, please visit the MAM website: http://www.mam.co.jp/english/index.html
The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.
A USD $16.5 billion multinational group based in Mumbai, India, Mahindra employs more than 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership.
In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.
In 2012, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed companies in the world. In 2013, the Mahindra Group received the Financial Times 'Boldness in Business' Award in the 'Emerging Markets' category.
Visit us at www.mahindra.com
Video - http://youtu.be/ya9iZP3I9Nk
Photo - http://photos.prnewswire.com/prnh/20150521/217977
Photo - http://photos.prnewswire.com/prnh/20150521/217978
Photo - http://photos.prnewswire.com/prnh/20150521/217979