Mumbai: India's largest tractor manufacturer, Mahindra & Mahindra, has entered the Iranian market, becoming the first Indian firm to launch tractors in the region. M&M has entered into a strategic tie-up with a local tractor manufacturer, a top company official said.
M&M, which is in the midst of all-round expansion, is making a big push in the farm equipment business. Not only has M&M finalised an investment of Rs400 crore over the next two-three years in expanding tractor capacity and in funding new product development, the company has also planned inorganic growth.
The company's total tractor manufacturing capacity is expected to go up from 15,000 at present to 1.20 lakh units by the turn of this decade. The plan includes setting up a greenfield facility in India with a capacity of at least 40,000 units over the next 18 months, and bringing low horsepower tractors from its Chinese operations into India.
M&M is also pursuing inorganic growth and is again in the race for acquiring Romanian tractor manufacturer Tractorul, after the Romanian government re-opened negotiations recently.
M&M already has tractor manufacturing units in India and China, besides assembly units in the US and Australia.