New Delhi, April 10 Mahindra & Mahindra announced on Friday that it has divested its stake in a subsidiary in the industrial manufacturing sector, Erkunt Foundry, to a consortium led by Hisarlar Makina Sanayi.
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), entered into a stock purchase agreement (SPA) with a consortium led by Hisarlar Makina Sanayi on April 10, 2026, Mahindra & Mahindra said in a regulatory filing.
Under the SPA, MOICML and Erkunt Traktor have agreed to sell their entire stake, amounting to 99.04 percent 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, the filing added.
The exit from the foundry business aligns with the company's capital allocation framework, M&M said.
"The consideration to be received by MOICML and Erkunt Traktor is Turkish Lira 1,000,000 (approximately Rs 2,13,000 at the prevailing foreign exchange rate), after MOICML infuses Turkish Lira 1.2 billion (approximately Rs 256 crore at the prevailing foreign exchange rate) to extinguish external debt and fund the business until the transaction closes," the filing said.
M&M's exit from 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 company with over 50 years of experience and strong European OEM linkages, with the capability to sustainably invest and grow the business.
The deal will have no impact on M&M's tractor business in Turkey, which continues as part of the Mahindra group.