Mahindra & Mahindra on Wednesday said its Japanese arm, Mitsubishi Mahindra Agricultural Machinery (MAM), and Kubota, have entered a collaboration to offer products, services, and solutions to meet customer needs through mutual utilization of resources in Japan.

 

Under the collaboration, the two firms will expand the existing scope of mutual original equipment manufacturing (OEM) supply, placing focus on tractors, rice transplanted, and combine harvesters, including implements and associated equipment, Mahindra & Mahindra (M&M) said in a regulatory filing.

 

The two partners are also discussing the supply of agricultural machines that can accommodate Kubota's farming support system, KSAS, and utilization of the system at MAM.

 

Besides, there will be a future discussion for collaboration in product development.

 

M&M Executive Director and Chairman MAM, Rajesh Jejurikar, said the business collaboration for the Japanese market will include a broad range of collaborative efforts including but not limited to expanding the mutual OEM supply arrangements, joint utilization of IoT and other tech solutions, and exploring opportunities for collaborating in product development for Japan.

 

Explaining the rationale behind the collaboration, Kubota and Mitsubishi Mahindra Agricultural Machinery said the Japanese farming population is aging and shrinking and it is shifting to large-sized farming organizations and small-sized part-time farmers.

 

"This trend is inspiring increasing customer needs for labor-saving, operations and cost-efficiency in farm machine and sophisticated technologies such as autonomous and IoT solution. Kubota and MAM have implemented their own approaches to handle customer issues," the two companies said in a joint statement.

 

Kubota is finding solutions in their large selections of products from small to large size and in promotion of smart agriculture that utilizes self-driving agricultural machines and the farming support system KSAS.

 

On the other hand, Mitsubishi Mahindra Agricultural Machinery offers a lineup of products equipped with Mitsubishi''s proprietary technologies and pursuit of craftsmanship spirit or “monozukuri spirit” (craftsmanship spirit) under the brand message “Long Life”, it added.

 

However, it is critically important to secure resources in each company to sustainably respond to the diversified demands of Japanese customers while expansion of the Japanese agricultural market is not expected.

 

"Kubota and MAM are announcing that they have agreed to start a discussion to endeavor to offer products, services, and solutions that meet the customer needs through mutually utilizing resources to contribute to continuous and stable food production in Japan," the statement added.