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MUMBAI, NOV 9: Mahindra & Mahindra Ltd, India's top tractor and utility vehicle maker, said on Tuesday it has entered into a joint venture agreement with China's Jiangling Motors Co to make tractors.
Mahindra said it planned to invest $8 million in the joint venture, whose estimated value is $10 million, and will hold a majority stake.
Its shares rose 1.3 per cent to the day's high of Rs 457.15 on the news in a slightly firmer Mumbai market.
The proposed joint venture would acquire tractor making assets from Jiangling Tractor Co, a subsidiary of Jiangling Motors, which will provide the manufacturing base and distribution network in China, a notice to the Bombay Stock Exchange said.
The leader in India, which is the world's largest tractor market, Mahindra plans to become the world's No. 1 player by between 2008 and 2010, rising from No 4 currently. |