Mumbai: Mahindra & Mahindra Ltd, through its unit Mahindra Agri Solutions Ltd (MASL), has agreed to acquire a stake of up to 60% in the Netherlands-based fruit distribution company OFD Holding BV for around €5 million (approximately Rs36 crore), it said in a statement on Monday.
The group has signed a definitive agreement to acquire the stake.
“…we have entered into a partnership with OFD Holding BV, which takes us closer to achieving our vision of being a significant player in grapes. We have been working with farmers in India for a long time and this association will bring a lot of synergy by giving access to new markets to our farmers,” MASL managing director and CEO Ashok Sharma said.
Mahindra and OFD already have a supplier-customer relationship which shall be further strengthened to address market needs. The acquisition will provide access to large sourcing base to both the companies across the globe i.e India, South American countries and South Africa as well as a distribution base in Europe and China.
The deal is expected to be completed by the end of January 2017.
Vikram Puri, executive vice president of Mahindra Agri Solutions said, “Our investment into OFD Holding BV gives us a presence in the European and Chinese markets, allowing us to reach new customers and strengthen our relationship with existing customers.”
OFD Holding is a fruit import and distribution company operating through its subsidiaries in Europe and China on the market side and South America on the sourcing side.
“India is an increasingly important supplier of grapes to our markets and Mahindra is one of the largest exporters, which is giving us access to a growing volume of excellent quality grapes. We are looking forward to intensifying our cooperation with the Mahindra team and the growers, to jointly develop innovations, new markets and customers,” said Corne van de Klundert, MD of OFD Holding BV & Origin Fruit Direct BV.