Indian multinational automobile and agricultural equipment maker Mahindra and Mahindra Limited (M&M) studies executing new project in Egypt, Trade and Industry Minister Tarek Qabil stated Wednesday.
He added that the new project would be established with investments worth US$40 million to manufacture agricultural machines and tractors in cooperation with an Egyptian firm whether working in public or private sector.
The minister made these remarks during his meeting with a mission from the Indian firm on Wednesday.
M&M is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors across the world. It is a part of Mahindra Group, an Indian conglomerate.
Qabil added that the Indian firm studies opening an office in Cairo to follow-up and supervise its business in Egypt and North Africa.
After starting its investments in the Egypt, M&M would enjoy a number of competiveness privileges notably the large local market and Egypt’s logistic location, the minister clarified. Additionally, products of M&M have the potential of entering a massive number of states due to the Tripartite Free Trade Area (TFTA) with Africa’s three largest regional economic communities.
The TFTA was signed between Egypt and states of Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), and the Southern African Development Community (SADC).
Minister Qabil noted that the ministry is currently preparing a visit for M&M’s officials to a number of Egyptian firms working in producing agricultural equipment field to review available manufacturing potentials in Egypt.
On other side, Kairas Vakharia – Senior Vice President at Mahindra and Mahindra- said that the company targets establishing investment projects in the Egyptian market in cooperation with leading Egyptian firms working in equipment and machines field.
Mahindra and Mahindra is one of the largest global firms working in fields of auto manufacturing, farm equipment, financial services, infrastructure projects, IT, and logistics services, Vakharia clarified.
Vakharia added that company’s project in Egypt would serve a massive number of feeding industries besides achieving a technological leap in the Egyptian agricultural sector.