Mahindra & Mahindra on Wednesday said its Japanese arm, Mitsubishi Mahindra Agricultural Machinery (MAM), and Kubota, have entered a collaboration to offer products, services and solutions to meet customer needs through mutual utilisation of resources in Japan.
Under the collaboration, the two firms will expand the existing scope of mutual original equipment manufacturing (OEM) supply, placing focus on tractors, rice transplanters and combine harvesters, including implements and associated equipment, Mahindra & Mahindra (M&M) said in a regulatory filing.
The two partners are also discussing supply of agricultural machines that can accommodate Kubota''s farming support system, KSAS, and utilisation of the system at MAM.
Besides, there will be future discussion for collaboration in product development.
M&M Executive Director and Chairman MAM, Rajesh Jejurikar, said the business collaboration for the Japanese market which will include a broad range of collaborative efforts including but not limited to expanding the mutual OEM supply arrangements, joint utilisation of IoT and other tech solutions, and exploring opportunities for collaborating in product development for Japan.
Explaining the rationale behind the collaboration, Kubota and Mitsubishi Mahindra Agricultural Machinery said Japanese farming population is aging and shrinking and it is shifting to large-sized farming organisations and small-sized part-time farmers.
"This trend is inspiring increasing customer needs for labour-saving, operations and cost-efficiency in farm machine and sophisticated technologies such as autonomous and IoT solution. Kubota and MAM have implemented own approaches to handle customer issues," the two companies said in a joint statement.
Kubota is finding solutions in their large selections of products from small to large size, and in promotion of smart agriculture that utilise self-driving agricultural machines and the farming support system KSAS.
On the other hand, Mitsubishi Mahindra Agricultural Machinery offers a lineup of products equipped with Mitsubishi''s proprietary technologies and pursuit of craftsmanship spirit or “monozukuri spirit” (craftsmanship spirit) under brand message “Long Life”, it added.
However, it is critically important to secure resources in each company to sustainably respond to diversified demands of Japanese customers while expansion of Japanese agricultural market is not expected.
"Kubota and MAM are announcing that they have agreed to start discussion to endeavour to offer products, services and solutions that meet the customer needs through mutually utilising resources to contribute to continuous and stable food production in Japan," the statement added.