India: Mahindra bets big on ag sector
The Mumbai-based group, which forayed into agri-segment in 2010-end, is keeping options open for acquisitions in the range of Rs 100-150 crore in seeds, dairy, irrigation and crop care verticals as it looks to scale up.
Already it is working on various initiatives, including selling of grapes, apples, banana, seed potato, pulses, oilseeds, dairy and micro irrigation.
"Since we are the largest brand in tractors we have fairly high brand equity in Indian agricultural space. Therefore, what we are doing is we are taking our tractor knowledge and expanding it to complete the agri value chain," Mahindra & Mahindra Executive Director Pawan Goenka told PTI.
Bullish on the sector, he said: "The way I look into it, five years from now the agri business will become significant revenue and profit generator for Mahindra & Mahindra."
At present, M&M has a joint venture with Belgium-based Univeg to develop supply chain and sell fresh fruits in the domestic and international markets under the 'Saboro' brand.
Besides, it has inked a JV with Dutch firm HZPC to produce high quality seed potatoes for both domestic and export markets. It will also start trade with Kenya this year by importing pulses and exporting rice.
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