M&M to acquire 51 pc in GTCL

M&M to acquire 51 pc in GTCL
ENS ECONOMIC BUREAU

MUMBAI, DEC 18: Tractor and utility vehicle maker Mahindra & Mahindra has signed an agreement with the Gujarat government to acquire a 51 per cent stake in state-owned Gujarat Tractors Corp Ltd (GTCL).

"The proposal which was cleared by the shareholders at the 51st annual general meeting of M&M, was inked in Gandhinagar today, resulting in a joint venture company in which M&M now holds a majority stake," the firm said in a statement.

"This joint venture will transform the GTCL facility into a compact and efficient organisation that will further strengthen our grip over the local and later export markets," the statement quoted M&M's executive director and president (farm equipment sector) K J Davasia, as saying.

GTCL, which has its manufacturing facility at Baroda in Gujarat, also has facilities for the machining of components and a dedicated foundry. M&M said the products from GTCL's plant would complement its existing product range.The statement added that M&M would reorganise the manufacturing set upof the joint venture company and also share its marketing and distribution network.

One of the oldest tractor manufacturing units in the country, GTCL came into existence in 1978 through the nationalisation of Hindustan Tractors Limited and was on the verge of closure.