New Delhi [India], March 2 (ANI): Mahindra & Mahindra Limited on Monday knowledgeable the stock exchanges that its Japan-based affiliate, Mitsubishi Mahindra Agricultural Machinery Co., Ltd. (MAM), has authorised withdrawal from its agricultural equipment enterprise.
The determination was authorised by MAM’s board on March 2, 2026. The withdrawal will cowl analysis and improvement, manufacturing, and home in addition to abroad gross sales of agricultural equipment. The firm plans to stop manufacturing and gross sales in a phased method by the primary half of fiscal yr 2027.
However, MAM mentioned it’ll proceed its spare elements provide enterprise and product guarantee providers for current clients.
‘With respect to companies aside from the persevering with enterprise, MAM plans to dissolve and proceed with liquidation procedures in accordance with the relevant legislation,’ M&M mentioned in its regulatory submitting.
Explaining the rationale, the corporate mentioned MAM has continued to incur losses regardless of a number of structural measures geared toward restoring profitability. After assessing the long-term viability and monetary sustainability of the enterprise, it concluded that sustaining operations in a steady method could be difficult going ahead.
As per disclosures, MAM reported income from operations of Rs 2,094 crore for the yr ended March 31, 2025. After elimination of intercompany transactions with the Mahindra Group, it contributed Rs 1,786 crore, or 1.13 per cent, to the consolidated turnover of M&M.
MAM’s internet value stood at Rs 17.74 crore as on March 31, 2025. After intercompany changes, it contributed Rs 11.83 crore, or 0.02 per cent, to the consolidated internet value of the corporate, excluding non-controlling curiosity.
The affiliate reported a loss after tax of Rs 227.42 crore for FY25. After changes, it contributed Rs 151.61 crore, or 1.17 per cent, to the consolidated revenue after tax of M&M, excluding non-controlling curiosity.
On completion of the liquidation process, the promoter group wouldn’t be required to incur annual losses or fund the enterprise additional.
The firm added that it’ll proceed with the withdrawal whereas giving due consideration to minimise inconvenience to stakeholders, together with enterprise companions, who will likely be contacted individually. Employees not engaged within the persevering with enterprise will likely be offered most attainable re-employment assist. (ANI)