Mahindra & Mahindra Limited (M&M), India's leading automotive and farm equipment manufacturer, has announced the divestiture of its wholly-owned subsidiary, Sampo Rosenlew Oy, to Tera Yatirim Teknoloji Holding Anonim Sirketi (TERA) for €5 million (approximately Rs. 52.00 crore).

Strategic Realignment

The company entered into a Share Purchase Agreement (SPA) with TERA on September 29, agreeing to sell its entire stake in Sampo Rosenlew Oy. This move aligns with M&M's strategic vision to optimize its portfolio and focus resources on opportunities that best position the company for long-term success.

Financial Impact

According to M&M's disclosure, Sampo Rosenlew Oy contributed Rs. 370.98 crore to the consolidated turnover, representing 0.23% of M&M's consolidated revenue. The subsidiary's net worth stood at Rs. 182.02 crore, accounting for 0.24% of M&M's consolidated net worth, excluding non-controlling interests.

Transaction Details

The transaction is expected to be completed by October 6. M&M clarified that TERA does not belong to the promoter/promoter group or any group companies of M&M, and the transaction does not fall within the ambit of related party transactions.

Strategic Implications

Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sectors) at M&M, commented on the divestiture, stating, "This strategic move allows Sampo to pursue new pathways for innovation and growth under new ownership, while enabling M&M to focus on core areas of strength and future growth opportunities."

About Sampo Rosenlew Oy

Founded in 1853, Sampo Rosenlew Oy specializes in manufacturing high-quality combine harvesters and forestry machines. The company employs around 200 professionals and has manufacturing operations in Pori, Finland. Sampo Rosenlew Oy reported net sales of approximately €41 million.

M&M's Market Position

Despite this divestment, M&M continues to maintain a strong position in its core markets. The company reported a 43.3% market share in the domestic tractor industry, retaining its leadership position for the 42nd consecutive year. In the automotive segment, M&M has seen growth in its UV sub-segment, with its revenue market share increasing from 20.4% to 22.5%.

This strategic divestiture reflects M&M's commitment to streamlining its operations and focusing on its core strengths in the automotive and farm equipment sectors, while maintaining its position as a leader in the Indian market.

Mahindra & Mahindra , a leading Indian automaker, has announced substantial festive season benefits on its commercial vehicle lineup, offering customers savings of up to Rs 1.84 lakh. The company has combined reduced GST and festive offers across various models to provide attractive deals for potential buyers.

Highlights of the Festive Offers

• Supro: Leads the pack with the highest benefits of Rs 1.84 lakh and a starting price of Rs 5.71 lakh
• Veero: Priced at Rs 7.34 lakh with total benefits of Rs 1.83 lakh
• Maxx Pik-Up HD: Available at Rs 9.02 lakh, offering Rs 1.74 lakh in total benefits
• Bolero Pik-Up: Starts at Rs 9.05 lakh with Rs 1.71 lakh in benefits
• Maxx Pik-Up City: Begins at Rs 7.63 lakh, providing Rs 1.50 lakh in benefits
• Bolero Camper: Priced from Rs 9.70 lakh with total benefits of Rs 1.28 lakh

Detailed Breakdown of Offers

Mahindra & Mahindra has emphasized that these benefits are model and variant specific. The prices mentioned are applicable in Maharashtra and may vary in other markets across India.

This festive season offer presents an opportunity for commercial vehicle buyers to make significant savings. The combination of reduced GST and festive offers across different models makes it an attractive proposition for those looking to purchase or upgrade their commercial vehicles.

The wide range of vehicles included in this offer caters to various commercial needs, from the compact Supro to the robust Bolero Camper. With savings ranging from Rs 1.28 lakh to Rs 1.84 lakh, depending on the model, customers have the flexibility to choose a vehicle that best suits their requirements and budget.

As the festive season approaches, this move by Mahindra & Mahindra could potentially boost sales in the commercial vehicle segment, which plays a crucial role in India's transportation and logistics sector.