Mahindra & Mahindra Exits Foundry Business in Turkey, Sells Majority Stake
M&M exits foundry business in Turkey, sells stake to Hisarlar-led consortium
The Economic Times
Image: The Economic Times
Mahindra & Mahindra has divested its 99.04% stake in Erkunt Foundry to a consortium led by Hisarlar Makina Sanayi for approximately Turkish Lira 1,00,000 (around ₹213,000). This move aligns with the company's capital allocation strategy and follows a broader portfolio review process.
- 01Mahindra & Mahindra sold 99.04% of Erkunt Foundry to Hisarlar Makina Sanayi-led consortium.
- 02The sale price is approximately Turkish Lira 1,00,000 (around ₹213,000).
- 03This divestment is part of M&M's capital allocation framework and ongoing portfolio review.
- 04Hisarlar Makina Sanayi has over 50 years of experience in engineering and manufacturing.
- 05M&M's tractor business in Turkey remains unaffected by this transaction.
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Mahindra & Mahindra (M&M) announced its exit from the foundry business in Turkey by selling its 99.04% stake in Erkunt Foundry to a consortium led by Hisarlar Makina Sanayi. The transaction, formalized through a stock purchase agreement on April 10, 2026, is valued at approximately Turkish Lira 1,00,000 (around ₹213,000). This divestment is consistent with M&M's capital allocation strategy and follows a comprehensive review of its portfolio. Hisarlar Makina Sanayi, an established player in the engineering and manufacturing sector with over 50 years of experience, aims to leverage its capabilities to grow the foundry business sustainably. M&M emphasized that this sale will not impact its tractor operations in Turkey, which will continue as part of the Mahindra group.
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This divestment allows Mahindra & Mahindra to focus on its core businesses, potentially improving operational efficiency and capital allocation.
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