Mahindra Sells Erkunt Foundry

Mahindra & Mahindra has agreed to sell its 99.04% stake in Turkey’s Erkunt Foundry to buyers led by Hisarlar Makina. (mahindra.com) The stock purchase agreement was signed on April 10, 2026, by Mahindra Overseas Investment Company (Mauritius) Limited and Erkunt Traktör Sanayii Anonim Şirketi, both within the Mahindra group. The buyers are Hisarlar Makina Sanayi ve Ticaret A.Ş., Oguzhan Sahinkaya and Bunyamin Sarioglu. (mahindra.com) Mahindra said the sale price is 100,000 Turkish lira and that the deal is expected to close by July 30, 2026. After completion, Erkunt Foundry will stop being a subsidiary of Mahindra’s Mauritius unit and a step-down subsidiary of Mahindra & Mahindra. (economictimes.indiatimes.com, mahindra.com) Mahindra framed the move as an exit from the foundry business under its capital allocation framework, which is the company’s process for deciding where to keep investing and where to pull back. The company also said the transaction will not affect its tractor business in Turkey. (mahindra.com, devdiscourse.com) That distinction matters because Mahindra’s Turkey presence is larger than this one asset. Mahindra Farm Equipment says it acquired Erkunt Traktör, the country’s fourth-largest tractor brand, in 2017. (mahindrafarmequipment.com) Erkunt Foundry was small inside Mahindra’s consolidated accounts but still a real operating business. Mahindra said Erkunt Foundry posted 821.00 crore rupees in revenue for the year ended March 31, 2025, and contributed 771.69 crore rupees, or 0.49%, to consolidated turnover after eliminating group transactions. (mahindra.com) The low headline sale price does not tell the whole story of the exit. Market reports citing the filing said Mahindra will put in about 256 crore rupees before closing so Erkunt Foundry can repay external debt. (cnbctv18.com, scanx.trade) Hisarlar is not a random buyer in Mahindra’s orbit. Mahindra’s 2017 annual disclosures and later company profiles tied the group to Turkish farm-equipment deals that year, including Erkunt, underscoring how the company has been reshaping its industrial footprint in Turkey rather than leaving the market entirely. (mahindrafarmequipment.com, en.wikipedia.org) The deal leaves Mahindra with its Turkish tractor operations and without the foundry unit that supplied industrial castings. For Mahindra, the immediate next step is closing the sale by July 30 and taking Erkunt Foundry off its subsidiary list. (mahindra.com, manufacturing.economictimes.indiatimes.com)