M&M to set up satellite plant for tractors in The Gambia
Mahindra & Mahindra, the world’s fourth largest tractor manufacturer, has entered into a contract with the Government of The Gambia to supply different models of tractors along with matching implements. Mahindra & Mahindra will also set up a satellite plant that will look after the assembly of these tractors in The Gambia and handle after sales service support and training for local mechanics.
Mr. V. S. Parthasarathy, Executive VP, International Operations, Mahindra & Mahindra Farm Equipment Sector, said, “We are happy that we are the Company to have the first such venture supported by the Government of India to its Gambian counterpart. This is just the beginning for Mahindra tractor division in Africa, and we hope to really make a difference in farm mechanization in Africa.”
The contract will result in technology transfer as well as employment and earning opportunity for the youth of the country. This is a new concept for countries in the African region, which traditionally have been dumping grounds for imported products that are invariably left to languish without much support from the manufacturers.
M&M plans to take this concept forward and work with more countries in Africa to enhance M&M’s brand in the region.
Exports have been a thrust area for M&M’s Farm Equipment Sector. After tasting success in the fiercely competitive US market, FES is now focusing on other major international markets. M&M acquired an 80% stake in Jiangling Motors in China to set up the Mahindra China Tractor Co. Ltd.; it set up a branch office in Australia and launched its East European operations starting with Serbia & Montenegro.
The African continent is important for M&M’s global plans. Unlike its major Indian and European competitors, it has focused on setting up alliances in the region rather than concentrate on just supply of tractors. M&M already has contracts (alliances) in place to set up Manufacturing Units under the Indian Government Lines of Credit, which will mean long-term association with local governments of these countries for Mahindra Tractors.
Sourced From: Adfactors Public Relations Pvt Ltd
M&M stock price
On May 06, 2015, Mahindra and Mahindra closed at Rs 1158.85, down Rs 18.75, or 1.59 percent. The 52-week high of the share was Rs 1421.00 and the 52-week low was Rs 1050.20.
The company's trailing 12-month (TTM) EPS was at Rs 59.05 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 19.62. The latest book value of the company is Rs 270.42 per share. At current value, the price-to-book value of the company is 4.29.
READ MORE ON Mahindra & Mahindra, The Gambia , tractors , V. S. Parthasarathy, M&M’s Farm Equipment Sector, Jiangling Motors, Mahindra China Tractor Co. Ltd, Australia, Serbia & Montenegro
Set email alert for
ADS BY GOOGLE
video of the day
Budget 2015-16: Revive capex through savings on cheap crude says Kotak Sec