Mahindra &Mahindra (M&M) signed agreement with Japan’s Mitsubishi Agriculture Machinery Company related to farm equipment technology. The deal was signed on Thursday and as per the terms of deal, Mitsubishi will be transferring its technology to M&M.

The same has happened since M&M will be making Mitsubishi’s farm equipments in India and the license has been give to M&M Farm Equipment Sectors’ (FES) Applitrac.

To begin with M&M will be making rice transplant machines and then it will switch over to other machines. The rice machine will be sold at Rs.1.75 lakh and the company expects to sell more than 1,000 units this year. Most of it would be sold in SAARC countries and most importantly in China.

For this venture, M&M has already invested Rs.15 crore and expects to sell 5,000 units in the coming three years.

Talking about the venture, President of M&M FES Anjanikumar Choudhari said that the two companies already share a long term relationship and that they are discussing on various issues other than just technology transfer. The two are also looking forward to India as a big market.