M&M signs deal with Iran tractor major

TEHRAN, OCT 11 '06: Farmers in Iran are all set to experience a world class product from Mahindra & Mahindra, the world's fourth largest tractor manufacturer. M&M today announced its strategic entry into Iran with an alliance with ITMCo (Iran Tractor Manufacturing Co.). Under the agreement, M&M will supply tractors through ITMCo's channel in Iran. The 6000 DI will be the first model to be launched in Iran.

The announcement was made at a dealer and customer launch in Tehran today. M&M is the first Indian tractor company to enter into a strategic alliance of this nature in Iran, which is one of the biggest tractor markets in the region after India, the USA and China.

ITMCo is a government-owned company and is the largest tractor manufacturer in Iran. It holds 80% market share in the country. The operations are slated to get off the ground in October. The larger intent, however, is to look at localization and development of tractors that are ideally suited for the tough local conditions. Besides, ITMCo with its vast and well entrenched network, is fully equipped to handle customer service support and spares.

Mr. Anjanikumar Choudhari, President, M&M Farm Equipment Sector, said, "Iran is a focus market in our strategy to put Mahindra tractors in farms across the world. While boosting our global presence, our partnership in Iran is designed to build on our commitment to performance. We see immense synergy between the two organizations, which will ensure the success of this initiative."

On the occasion of the launch, Mr. V.S. Parthasarathy, EVP, International Operations (FES) Mahindra & Mahindra, said, "We have extensively tested our tractors in Iran for over a year. Only after being 100% sure of its performance are we launching our first model, 6000 DI. Also, we were looking for a partner who matches our ideology of total customer centricity. ITMCo is just the right partner for us as they are fully committed to the betterment of the Iranian farmer. We look forward to a long and healthy relationship with ITMCo and Iran." Mr. Parthasarathy led the team to Iran for the launch on 7th Oct.

The strategic alliance in Iran is a concerted effort in M&M's philosophy in providing global customers world class products at a value price. Iran's strong agrarian economy, coupled with ITMCo market reach and penetration, makes the country a significant global footprint in M&M's expansion.

M&M has been the No.1 tractor player in India for over 23 years and has 30% share of the market. Armed with domestic leadership and a product range across all HP segments, M&M is now focusing on overseas markets. The result of this drive is its export presence in over 18 countries worldwide. Important global tractor markets in world for M&M include the US, China, SAARC countries, Africa, East Europe, Middle East, SE Asia. M&M has three assembly units in the USA, a manufacturing facility in China, an assembly plant in Brisbane, Australia and a contract for setting up a assembly plant in The Gambia in Africa. M&M has also launched a foray into Serbia and the East European market with its 39-50 HP range of tractors.

About The Mahindra Group

The US $3 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top five tractor manufacturers in the world and is the market leader in multi-utility vehicles in India. It has a leading presence in key sectors of the Indian economy, including trade and financial services (Mahindra Intertrade, Mahindra & Mahindra Financial Services Ltd.), automotive components, information technology & telecom (Tech Mahindra, Bristlecone), and infrastructure development (Mahindra GESCO, Mahindra Holidays & Resorts India Ltd., Mahindra World City). With around 60 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution. The Group employs around 30,000 people and has eight state-of-the-art manufacturing facilities in India spread over 500,000 square meters.

The Mahindra Group has ambitious global aspirations and has a presence in 20 countries spread across four continents. Mahindra products are today available in every continent except Antarctica. M&M has made strategic acquisitions of plants in China and the United Kingdom, and has 2 assembly plants in the USA. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa. M&M has entered into partnerships with international companies like Renault, France, and International trucks, USA.