Turkey is ranked among the largest farm equipment markets globally and is a leading tractor market in Europe. Despite Turkey being part of the Syrian war at the moment, the farm equipment market is still largely unaffected. Mahindra is betting high on this market and claimed there will be no impact for growth from major world events or any major security concerns in the country.


Mahindra is the world’s leading tractor company by volume, with an on ground presence in India, US, China, and Japan, besides many other export markets.


Hisarlar is a company started 40 years ago by a blacksmith called Farzi who was visited by a farmer with a dilemma. A doctor has told him that he would die if he continued to work in an open tractor in all weathers. So Farzi,  the blacksmith,  made a cabin for the farmer the first such cabin for a Turkish made tractor. Today, Hisarlar has three business units namely agricultural machinery, tractor cabins and industrial components for off-highway machinery. Agricultural mechanisation in Turkey is growing and the country is also an important market for combined harvesters. Apart from some imports in harvesters, farm equipment demand in Turkey is primarily met through domestic production. In addition, a significant proportion of agriculture equipment manufactured in Turkey is exported to Central Asia, the Middle East, and Africa.

In industrial cab manufacturing, Hisarlar offers all kinds of vehicle cabs for tractors, loaders, excavators and heavy equipment. As the supplier of cabs to the entire tractor manufacturing industry in Turkey, the company meets over half of the industry’s demand.

TURKAR 4X4 Off-Road Light Truck is a concept vehicle with features such as customizable bodywork for business needs, flexible speed options to choose from (business or personal use), and 70% grade ability due to its rear differential locking system and intermediate gearbox allowing full control.

The company, which owns the first R&D Center in Turkish agricultural machinery, is continuing on its path to maximize efficiency with its search for continuous development.

Currently, Hisarlar makes smaller machines for Turkish farmers. But when the government reforms programme to consolidate land plots, it will result in more economically viable farms.

The company recorded revenue of Turkish Lira 208 million (about INR 370 crore) in 2015 with exports constituting around 35 per cent of sales. It has two production facilities in western Turkey and employs about 820 people (out of whom 150 are certified welders and about 40 are engineers).


Mahindra and Mahindra Ltd (M&M) has acquired 75.1% equity stake in Hisarlar Makina Sanayive Ticaret Anonim Sirketi (Hisarlar), a farm equipment company for approximately $19 million (about INR 130 crore). The association will help in growing the farm equipment business in Turkey and Europe. The balance shareholding will be with European Bank for Reconstruction and Development (EBRD) (18.7%) and the founding Turker family (6.2%). EBRD has increased stake which might be acquired from Darby Converging Europe Fund II as it has exit in this transaction. EBRD stake will entitle them to nominate a Board of Director.

Please Note: The transaction, is expected to be closed by April 2017.


  • M&M strategy is to globalise aggressively and also expand the portfolio to include various new categories of farm machinery. This acquisition will enable Mahindra & Mahindra to expand its footprint in Turkey and Europe, making the entity a global manufacturing base for various farm machinery.
  • Turkish firm, with several patents to its name. M&M plans to tap the patents
  • This acquisition is an important milestone in their globalization journey as with this it will capture other markets viz. Central Asia, the Middle East, Europe and CIS (Commonwealth Independent States) and Africa.
  • Hisarlar is a market leader with 45% market share in soil preparation equipment in Turkey. It is also the largest cabin manufacturer in Turkey with 42% market share and has increased its tractor cabin production by 55% from 2012 to 2015.
  • Hisarlar has a large dealer network in Turkey, so Mahindra will be able to create a brand for M&M which will help them eventually launch tractors in the market.
  • M&M will launch some of the equipment made by Hisarlar in India, the US and other global markets, especially tractor cabins, which are increasingly in demand in India
  • The company has strong brands in this segment, supported by a distribution network of 85 dealers across Turkey.
  • The Mumbai-based firm will have majority in the board and control the management of Hisarlar.
  • During 2009-15, on average, the tractor market stood at 48,450 units.
  • Turkey also has a 3 per cent market share in the agri-machinery industry globally.
  • Agricultural mechanisation in Turkey is growing and the country is also an important market for combined harvesters
  • This is Mahindra’s second European deal within a year in the farm equipment sector. In March last year, it had agreed to acquire a 35% stake in Finland-based harvester maker Sampo Rosenlew Oy for up to $20.5 million.
  • M&M is betting big on Brazil where it plans to launch several new products this year and is also planning to enter Egypt.

European Bank for Reconstruction and Development (EBRD):

EBRD provides longer-term funding and actively looks for opportunities to promote the deepening of domestic capital markets. The EBRD is attracting foreign direct investment to Turkey, particularly at this challenging juncture.

The EBRD became a shareholder in the company by providing a joint venture investment with the Darby converging Europe Fund III.

As a shareholder in Hisarlar, it is pleased to partner with Mahindra & Mahindra. The Bank is confident in the potential of this partnership and is increasing its stake. This step will take Hisarlar to the next level, bringing innovation and know-how to the manufacturing of farm equipment in Turkey.


This acquisition will help Mahindra & Mahindra to cater new markets (viz. Europe-CIS, Africa) for its current product line and new products (harvesters, tractors cabins, off-highway machinery) for its current markets. This will be with the help of the current promoter and investor who are still as associates.

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