Mumbai, January 21, 2011 – Mahindra & Mahindra Financial Services Limited (Mahindra Finance), one of the leading players in providing financial services in the rural and semi-urban markets, has entered into a U.S. joint venture with De Lage Landen Financial Services Inc., (DLLFS) a wholly-owned subsidiary of the Rabobank Group. The joint venture will be marketed as Mahindra Finance. DLLFS and Mahindra Finance have 51% and 49% interest respectively in Mahindra Finance USA LLC.
Mahindra Finance USA LLC., a state of Delaware limited liability Company, will provide exclusive wholesale inventory financing to US based tractor dealers and retail financing to enduser customers on Mahindra tractors & implements or used products.
“We are happy to partner with a strong entity like DLLFS which compliments our vast experience of Indian tractor financing and are confident of taking Mahindra USA’s tractor sales to new heights in the United States. Mahindra Finance USA LLC. is our first foray outside India. We will jointly with our new partner guide the future of this venture for success by delivering products and services to both tractor dealers and customers.” says Mr. Ramesh Iyer, Managing Director, Mahindra Finance.
“We have enjoyed our long standing financing relationship with Mahindra USA and it dealers over the last ten years. The transition of the partnership to this joint venture will allow us to fully leverage the strengths of both partners to provide creative financial solutions for our customers,” adds Tom Meredith, President Global Business Unit Food & Agriculture, De Lage Landen. Uniting DLL’s knowledge in finance, servicing and credit capabilities, with the strength of the Mahindra brand, its comprehensive and growing product line, as well as Mahindra Finance’s credit and sales finance knowledge from its Indian market, both partners are looking forward to a successful future for the joint venture together.
“The launch of Mahindra Finance USA puts Mahindra on the short list of farm equipment companies that offer equipment, services and financing to our partners and customers. Mahindra Finance USA will be a key component to drive business growth in the North American market. It demonstrates our long term commitment to our stakeholders, strengthening the Mahindra brand in the U.S.,” notes Mani Iyer, President Mahindra USA. “Our goal is to provide Mahindra USA dealers and end user customers with competitive sources of financing, under a customized captive finance environment,” explained Kenneth Whitelaw, VP International Program Management DLL.