M&M exits foundry business in Turkey, sells stake to Hisarlar-led consortium

New Delhi: Mahindra & Mahindra on Friday said it has divested its shareholding in a step-down subsidiary in the industrial manufacturing space, Erkunt Foundry to a Hisarlar Makina Sanayi-led consortium.

Mahindra Overseas Investment Company (Mauritius) Ltd (MOICML), a wholly owned subsidiary of the company, along with its wholly owned subsidiary, Erkunt Traktor Sanayii Anonim Sirketi (Erkunt Traktor) have on April 10, 2026 entered into a stock purchase agreement (SPA) with a consortium led by Hisarlar Makina Sanayi, Mahindra & Mahindra (M&M) said in a regulatory filing.

Under the SPA, MOICML, and Erkunt Traktor have agreed to sell their entire stake aggregating to 99.04 per cent of the shareholding in Erkunt Sanayi Anonim Sirketi (Erkunt Foundry) to the consortium of Hisarlar Makina Sanayi ve Ticaret AS, Oguzhan Sahinkaya and Bunyamin Sarioglu, it added.


The exit of the foundry business is in line with capital allocation framework of the company, M&M said.

"The consideration to be received by the MOICML and Erkunt Traktor is Turkish Lira 1,00,000 (about Rs 2,13,000 at the prevailing foreign exchange rate), post infusion of Turkish Lira 1.2 billion by MOICML (Rs 256 crore at the prevailing foreign exchange rate, for extinguishing external debt and funding the business until closing of the transaction)," the filing said.

M&M's exit of the foundry business in Turkey follows actions initiated in Q3 as part of the broader portfolio review process,and therefore is a continuation of steps already underway.

Hisarlar is an established engineering/manufacturing player with over 50-year track record and strong European OEM linkages, with the capability to invest and grow the business sustainably.

The deal will have no bearing on M&M's tractors business in Turkey which continues as part of the Mahindra group.