Mahindra to exit from Japan agri-machinery business

New Delhi: Mahindra & Mahindra on Monday said it has decided to exit its Japan agri-machinery business as part of a portfolio rationalisation following a strategic review.

The board of Mitsubishi Mahindra Agricultural Machinery Co Ltd (MAM), which is operating in Japan, has approved to withdraw from the agricultural machinery business, the Mumbai-based company said in a regulatory filing.

MAM has also announced that the business which supplies spare parts for its products and product warranty services would continue to operate, it added.

With respect to businesses other than continuing business, MAM plans to dissolve and proceed with liquidation procedures in accordance with the applicable law therein, it stated.

"MAM has continued to incur losses despite multiple structural measures aimed at restoring profitability. After detailed assessment of the business' long term viability and financial sustainability, MAM has determined that sustaining the business in a stable manner going forward would be challenging," it stated.

On completion of the liquidation procedure, the promoter group would not have to incur the annual loss as well as funding these losses, it added.