New Delhi, Aug 18 (UNI) Mahindra&Mahindra Ltd (M&M) today said it has acquired a 51 per cent stake in a joint venture with a Chinese firm and will acquire the latter's tractor operations for 50 million dollars.
M&M's contribution to the joint venture with Jiangsu Yueda Yancheng Tractor Manufacturing Co would be 26 million dollars, a company statement said.
''We will have a large manufacturing base which will be used to not only produce for the domestic market but also for low cost manufacture of exports. Overall, this is an extrenely important development for our overseas tractor business operations,'' M&M Ltd President (Farm Equipment) Anjanikumar Choudhari said in the statement.
M&M already has a presence in China through Mahindra China Tractor Co Ltd.
The tractor industry (domestic and exports) in China has grown about 56,000 tractors in calender year 2003 to 2,20,000 tractors in 2007, a CAGR of 40 per cent.
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