M&M to exit non-viable Japan agri-machinery biz

New Delhi: Mahindra & Mahindra on Monday said it will exit its Japan agri-machinery business as part of a portfolio rationalisation exercise after a strategic review.

The board of Mitsubishi Mahindra Agricultural Machinery Co Ltd (MAM) has approved withdrawal from the agricultural machinery business in Japan. However, the spare parts supply and product warranty services business will continue.

The company said MAM has been incurring losses despite multiple structural measures to restore profitability. After assessing long-term viability and financial sustainability, it concluded that sustaining stable operations would be challenging.

MAM plans to cease production and sale of agricultural machinery by the first half of FY2027. Businesses other than the continuing operations will be dissolved and liquidated in accordance with Japanese law. The move will help the promoter group avoid recurring annual losses and funding requirements.

The company said it will minimise inconvenience to stakeholders and engage individually with business partners. Employees impacted by the withdrawal, except those in continuing operations, will be offered maximum possible re-employment support.