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Mumbai:Mahindra and Mahindra Ltd, the world’s largest tractor maker, on Tuesday said it has acquired a 26% stake in Mitra Agro Equipment Pvt. Ltd, a manufacturer of agricultural sprayers, in an all-cash transaction valued at Rs8 crore.

In a stock exchange filing, Mahindra said the Nashik-based company had posted revenues of Rs14 crore for the fiscal 2017, with a presence in Maharashtra, Gujarat, Karnataka and Andhra Pradesh.

Incorporated in April 2012 by Devneet Bajaj, Mitra will help Mahindra venture into horticulture applications, a new segment for the Mumbai-based conglomerate. Mitra manufactures sprayers to aid the growth of certain fruits such as grapes, pomegranates and mangoes.

“In combination with Mahindra’s tractors, the partnership with Mitra will enhance Mahindra’s presence in the farm implements space," said Rajesh Jejurikar, president of the farm equipment sector at Mahindra.

At present, the farm equipment sector contributes one out of every three rupees that Mahindra earns. The sector has been buoying growth for the company even as the automotive segment has witnessed a downturn in the past few quarters.

The investment will enable Mitra to “scale up operations across India and in relevant export markets," Bajaj said.

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