Murugappa Group ties up with 2 Japanese firms to make farm gear.

Coromandel International, a Murugappa group company, has entered into a joint venture with Yanmar & Co and Mitsui Trading for manufacturing and marketing farm machinery.

Coromandel and Yanmar will hold 40 per cent stake each and Mitsui 20 per cent. Details of the investment will be finalised later this month. It will initially manufacture the Yanmar brand of mini-harvesters, planters and rotavators for paddy cultivation and then expand its range to include equipment for other crops, including sugarcane and vegetables, according to A Vellayan, Murugappa Group’s Executive Chairman.

The machinery will target small farmers, a segment in which Japanese manufacturer Yanmar has a strong presence. The equipment will be sold and leased to farmers through Coromandel International’s Gromor chain of rural market outlets.

This is one of the group’s key focus areas for the current year – farm mechanisation and the nutraceuticals business. The Murugappa Group’s businesses span fertilisers, sugar, manufacturing and financial services, which together account for annual sales of nearly Rs. 25,000 crore.

HBL