Mahindra Mitsubishi JV to exit agriculture machinery business in Japan

Mitsubishi Mahindra Agricultural Machinery (MAM) Co., Ltd., Mahindra and Mahindra (M&M) Ltd’s joint venture in Japan will exit from the agricultural machinery business, citing it is no longer viable.

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Since its founding in 1914, the Company has engaged in the agricultural machinery business with the aim of contributing to the stable supply of food both in Japan and overseas, and our products have been supported by many farmers, as per M&M’s stock exchange filing.

Even amid significant changes in the business environment, the Company has pursued sustainable growth by implementing structural reforms, developing new products to meet evolving market needs, and making continued efforts to expand into new markets, it said.

However, after comprehensively considering recent changes in the domestic and international industry environment and demand structure as well as various constraints related to the production system, and after carefully assessing the profitability of the business and its long-term sustainability over an extended period, the Company has concluded that it would be difficult to continue the business in a sustainable manner, the company noted.

The company will exit  from Research and development, production, and domestic and overseas sales of agricultural machinery, which is  planned for the first half of fiscal year 2027.

Supply of spare parts for the Company’s products and product warranty services will continue, it said.

With respect to businesses other than the continuing business, the Company plans to dissolve and proceed with ordinary liquidation procedures in accordance with the Companies Act.

The Company will provide maximum possible reemployment support to employees who are unavoidably required to leave as a result of this business withdrawal.

The Revenue from operations of MAM for the year ended 31st March 2025 was Rs. 2,094.17 crores and after elimination of intercompany transactions with the Mahindra Group, MAM contributed Rs. 1,786.03 crore or 1.13 per cent to the consolidated turnover of the Company, M&M said.

The net loss of MAM as on 31st March 2025 was at Rs. 227.42 crore and after elimination of inter-company balances and adjustments with the Mahindra Group, it contributed  a loss of Rs. 151.61 crore  to M&M’s consolidated results, excluding non-controlling interest.

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