Mahindra & Mahindra to exit Japanese agri machinery business
Mitsubishi Mahindra Agricultural Machinery will cease operations by the first half of the financial year 2026-27 in a sustainable manner, but will continue to supply parts and warranty support for existing customers, according to a stock exchange filing.
- Mar 2, 2026,
- Updated Mar 2, 2026 2:15 PM IST
Mahindra & Mahindra Ltd’s Japanese subsidiary, Mitsubishi Mahindra Agricultural Machinery Co Ltd (MAM), on March 2 decided to exit the agricultural machinery business following a strategic review.
Mitsubishi Mahindra Agricultural Machinery (MAM) will cease operations by the first half of the financial year 2026-27 in a sustainable manner but will continue to supply parts and warranty support for existing customers, according to a stock exchange filing.
Businesses from where MAM will withdraw include research and development, production, and domestic and overseas sales of agricultural machinery, the filing said.
This comes after MAM continued to incur losses despite multiple measures aimed at restoring profitability amid headwinds such as demand shifts, competitive pressures and production constraints.
After a detailed assessment of the business’s long‑term viability and financial sustainability, MAM determined that stably sustaining the business going forward would be challenging.
“After comprehensively considering recent changes in the domestic and international industry environment and demand structure as well as various constraints related to the production system, and after carefully assessing the profitability of the business and its long-term sustainability over an extended period, the Company has concluded that it would be difficult to continue the business sustainably,” MAM said.
Mahindra & Mahindra’s decision to exit its Japan agri-machinery business is being seen as part of a portfolio rationalisation and disciplined capital allocation move following a strategic review.
MAM said it plans to dissolve and proceed with ordinary liquidation procedures in accordance with the Companies Act.
MAM said it will proceed with the business withdrawal while giving due consideration so as to minimise the inconvenience to all stakeholders, including business partners. “Each business partner will be contacted individually in due course,” it said. “In addition, except for employees engaged in the continuing business, the Company will provide maximum possible reemployment support to employees who are unavoidably required to leave as a result of this business withdrawal.”
Revenue from operations of MAM for the year ended March 31, 2025, was Rs 2,094.17 crore. The Profit After Tax of MAM as on March 31, 2025, was at negative Rs 227.42 crore.
Mahindra & Mahindra Ltd’s Japanese subsidiary, Mitsubishi Mahindra Agricultural Machinery Co Ltd (MAM), on March 2 decided to exit the agricultural machinery business following a strategic review.
Mitsubishi Mahindra Agricultural Machinery (MAM) will cease operations by the first half of the financial year 2026-27 in a sustainable manner but will continue to supply parts and warranty support for existing customers, according to a stock exchange filing.
Businesses from where MAM will withdraw include research and development, production, and domestic and overseas sales of agricultural machinery, the filing said.
This comes after MAM continued to incur losses despite multiple measures aimed at restoring profitability amid headwinds such as demand shifts, competitive pressures and production constraints.
After a detailed assessment of the business’s long‑term viability and financial sustainability, MAM determined that stably sustaining the business going forward would be challenging.
“After comprehensively considering recent changes in the domestic and international industry environment and demand structure as well as various constraints related to the production system, and after carefully assessing the profitability of the business and its long-term sustainability over an extended period, the Company has concluded that it would be difficult to continue the business sustainably,” MAM said.
Mahindra & Mahindra’s decision to exit its Japan agri-machinery business is being seen as part of a portfolio rationalisation and disciplined capital allocation move following a strategic review.
MAM said it plans to dissolve and proceed with ordinary liquidation procedures in accordance with the Companies Act.
MAM said it will proceed with the business withdrawal while giving due consideration so as to minimise the inconvenience to all stakeholders, including business partners. “Each business partner will be contacted individually in due course,” it said. “In addition, except for employees engaged in the continuing business, the Company will provide maximum possible reemployment support to employees who are unavoidably required to leave as a result of this business withdrawal.”
Revenue from operations of MAM for the year ended March 31, 2025, was Rs 2,094.17 crore. The Profit After Tax of MAM as on March 31, 2025, was at negative Rs 227.42 crore.