Staff Writer
Mumbai: Mahindra & Mahindra Limited said that its associate company in Japan, Mitsubishi Mahindra Agricultural Machinery Co., Ltd. (MAM), has approved a complete withdrawal from its agricultural machinery business, marking the end of more than a century of operations in the segment.
The decision was taken by MAM’s board on March 2, 2026, and formally communicated to Mahindra the same afternoon. The Japanese company, which is headquartered in Matsue City, Shimane Prefecture, has decided to exit research and development, production, and both domestic and international sales of agricultural machinery. The withdrawal is planned to be executed in a phased and sustainable manner, with production and sales expected to cease by the first half of fiscal year 2027.
Despite multiple structural reforms and sustained efforts to restore profitability, MAM has continued to incur losses. After evaluating the long term viability of the business amid changing domestic and global industry conditions, evolving demand patterns, and production constraints, the company concluded that continuing operations in a stable and sustainable way would be difficult.
While the core agricultural machinery business will be discontinued, MAM will continue its spare parts supply and product warranty services for existing customers. The company said this step is intended to minimize inconvenience to farmers and other stakeholders who have relied on its products over the years. Business partners will be contacted individually as part of the transition process.
Financial disclosures shared by Mahindra indicate that for the year ended March 31, 2025, MAM reported revenue from operations of Rs. 2,094.17 crore. After eliminating intercompany transactions with the Mahindra Group, the associate contributed Rs. 1,786.03 crore, accounting for 1.13 percent of Mahindra’s consolidated turnover. MAM’s net worth stood at negative Rs. 17.74 crore as of the same date and its profit after tax reflected a loss of Rs. 227.42 crore. After adjustments for intercompany balances, the associate contributed a negative 1.17 percent to the group’s consolidated profit after tax.
Following the exit from the withdrawn businesses, MAM plans to dissolve and initiate liquidation proceedings in accordance with Japanese law, while retaining only the continuing spare parts and warranty operations. Mahindra clarified that upon completion of liquidation, the promoter group would no longer need to absorb annual losses or fund the ongoing deficits of the associate. There will be no change in shareholding pattern as part of the restructuring.
In its public announcement in Japan, MAM acknowledged its legacy dating back to 1914 and expressed gratitude to customers, business partners, and employees. The company also stated that, except for those engaged in the continuing operations, it would extend maximum possible reemployment support to employees who may be impacted by the closure.
The development represents a strategic clean up of non performing overseas operations for Mahindra, while ensuring that existing customers in Japan and other markets continue to receive essential after sales support.
