M&M plans to merge two tractor units in China

mahindra-TractorThough the entities in operating in the Chinese market, Mahindra China Tractor Company (MCTCL) based in Nanchang province and Mahindra Yueda Yancheng Tractor Company (MYYTCL) in Jiangsu have been operating as two different units till now, but the company is planning to merge both into a single unit.

MCTCL's partner Jiangling has rightfully agreed to let go its holding in the venture resulting in empowering the tractor-major to merge the units into a single company.

The announcement came from Anjanikumar Choudhari, the outgoing President of Mahindra Farm Equipment Sector who will soon retire after a five-year stint in the tractor arm of the Group. Choudhari further mentioned the fact that the company is now left to complete its legal process before the two companies can be merged into a single unit.

Experts believe the merger will enable the parent company to make the administration process easier. In fact, after the merger both will have a single board along with a single set of accounts and legal departments.

Moreover, both the unit shave a complementary portfolio with one making a below 25 HP and the other above 30 HP products.