Latest news with #MallikaSrinivasan
News18
04-08-2025
- Business
- News18
AGCO CEO Highlights Settlement With TAFE On Commercial, Governance, Shareholding Matters
Last Updated: Mallika Srinivasan, Chairman and Managing Director, TAFE, too, acknowledged the efforts of all involved in the "amicable settlement". The US-based agriculture machinery giant AGCO had finalised an agreement with TAFE, under which AGCO will exit its 20.7 per cent shareholding in TAFE for a consideration of $260 million. AGCO Corporation Chairman and CEO Eric P Hansotia has said the company has announced the resolution with TAFE on all outstanding commercial, governance and shareholding matters. Speaking during AGCO's Q2 2024 earnings call on July 31, Hansotia confirmed that the US-based agriculture machinery giant will exit its 20.7% shareholding in TAFE for a consideration of $260 million. The move makes TAFE a fully owned subsidiary of the Chennai-based Amalgamations Group, a diversified industrial conglomerate. The agreements will become effective upon the completion by AGCO and TAFE of certain governmental and other processes in India relating to the repurchase of the shares held by AGCO in TAFE. 'Turning to a couple AGCO-specific items. We recently announced the resolution with TAFE on all outstanding commercial, governance, and shareholding matters… This agreement paves the way for a more shareholder-friendly capital allocation strategy, including the new $1 billion share repurchase program that Damon will discuss shortly," said the CEO during earnings call on July 31, 2025. 'We appreciate the TAFE relationship for its years as a commercial partner and continued support as a shareholder. AGCO's Board and management team are fully focused on our Farmer-First strategy, which we believe will improve outcomes for farmers, drive operational success for our company and deliver strong returns for shareholders," he said at that time. Mallika Srinivasan, Chairman and Managing Director, TAFE, acknowledged the efforts of all involved. In a statement, she thanked all TAFE teams, lawyers and stakeholders for their 'efforts and support in achieving an amicable settlement and comprehensive resolution of all legal disputes pertaining to the AGCO matter". Meanwhile, AGCO reported net sales of $2.6 billion for the second quarter ending June 30, 2025, a decrease of 18.8% compared to the second quarter of 2024. The second quarter of 2024 included other revenues of $290.5 million, which represent revenue from the company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. Reported net income was $4.22 per share for the quarter and adjusted net income (1) was $1.35 per share. These results compare to reported net loss of $(4.92) per share and adjusted net income (1) of $2.53 per share for the second quarter of 2024. Excluding favorable foreign currency translation of 3.5%, net sales in the quarter decreased 22.3% compared to the second quarter of 2024. 'AGCO achieved solid second-quarter results with deliberate execution in the areas we can control despite a challenging global agricultural environment marked by weak farm economics and delayed purchasing decisions in several parts of the world," Hansotia informed investors in a statement on July 31. 'Our strong earnings and cash flow generation illustrate meaningful progress in reducing dealer and company inventories through aggressive production cuts. Operating margins benefited from disciplined cost control and continued implementation of our restructuring initiatives. Demand for our premium brands remains resilient, supported by growing interest in precision agriculture and sustainable technologies." view comments Location : New Delhi, India, India First Published: August 04, 2025, 15:03 IST News business AGCO CEO Highlights Settlement With TAFE On Commercial, Governance, Shareholding Matters Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Indian Express
03-08-2025
- Business
- Indian Express
AGCO chief acknowledges Sudarshan Venu's role in ending TAFE dispute
Written by FE Business Chennai-based Tractors and Farm Equipment Ltd (TAFE) reached a comprehensive out-of-court settlement with US-based AGCO Corporation in July. The settlement ended all disputes over the Massey Ferguson brand, commercial arrangements and shareholding issues. As part of the settlement, TAFE became the sole and exclusive owner of the Massey Ferguson brand in India, Nepal and Bhutan. The company will now hold all rights, title and interest in the brand and related trademarks, along with the associated goodwill. The resolution was acknowledged by AGCO CEO Eric P Hansotia during the company's Q2 2024 earnings call. He credited the successful conclusion of talks to close collaboration with the son of TAFE Chairperson and MD Mallika Srinivasan. 'Turning to a couple of AGCO specific items, we recently announced resolution with TAFE on all outstanding commercial, governance and shareholding matters. This outcome was made possible with close collaboration with Sudarshan Venu,' Hansotia said. Earlier in July, TAFE and AGCO had agreed that TAFE would repurchase AGCO's 20.7% equity stake for $260 million. The buyback will make TAFE a wholly owned subsidiary of the Amalgamations Group, a Chennai-based industrial conglomerate. The corporate dispute came to a head in September 2024 when AGCO terminated its brand licensing and other agreements with TAFE. In response, TAFE filed a contempt petition, alleging AGCO's decision breached prior court orders and was carried out without due process. During the last month's settlement, Mallika Srinivasan had said, 'As we step into a new era in TAFE's growth story, we recognize and cherish the long partnership we've had with AGCO, and continue to support AGCO as an engaged shareholder.' 'TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years. We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India. As we move towards our vision of 'Cultivating the World', we are confident of delivering exceptional value to all our stakeholders,' she added, according to news agency PTI.
Time of India
13-07-2025
- Business
- Time of India
‘Values form core of a successful work culture'
Mallika Srinivasan, chairman and managing director of agricultural machinery manufacturer TAFE (Tractor and Farm Equipment Ltd), has been a respected voice in India Inc for decades. In a conversation with TOI, she talks about her leadership mantra, being part of a corporate legacy and Tamil Nadu's industrial future. Excerpts: You have seen India's automobile market in general and the tractor and farm equipment market in particular, change rapidly in the last 20 years or so. Looking ahead, what are the main change-points you see and how will it impact the way tractors and farm equipment are retailed and consumed in the future? Will AI, machine learning, smart machines, IoT make these products smarter and will that lead to smart cultivation? Precision agriculture and automation are key technology trends that will determine the future of farming. These technologies address farming needs of enhanced productivity and yield directly and encompass in their scope smart machines, AI, IoT, etc. The challenge in developing markets, however, is to create tailor-made solutions that are cost-effective for our farms and thereby enable widespread adoption. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai As the CMD of a 65-year-old company with a very strong legacy in the tractor and farm equipment industry, how did you stay in step with the company's legacy while forging a new path into the future? What were your challenges while doing so? Values form the core of a legacy and a successful culture. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo While institutionalizing these, we need to move forward, adopt technology, encourage innovation, and create a work environment that provides a learning culture and meets the aspiration of young professionals, evoking in each of them an entrepreneurial spirit. You were pivotal in forging a path for TAFE from acquiring Eicher's tractor business 20 years ago to resolving the dispute with long-term partner AGCO just recently. Do you see these milestones as growth catalysts for your company? How important are experiences like these to your vision of what you wanted TAFE to be when you entered the corner room? One starts with a dream and a clear vision. As the organization progresses, it develops strong capabilities while simultaneously the environment and competitive scenario evolves. Opportunities and challenges arise. One must be open to factoring these to recast strategy as required towards realization of the vision. The goal is clear. The path towards it, has to be periodically evaluated and refined. What's your vision for TAFE in the next 5 years? Where do you see the company and where do you see the industry? Our vision statement is 'Cultivating the World'. As one of the largest tractor manufacturers in the world and with a strong reputation for quality products, we are well positioned to move towards our vision. India is the world's largest tractor market and domestic volumes are expected to cross 10 lakh this year with export volumes growing faster than domestic and overall volumes are expected to be in excess of 11.25 lakh. Over the next three years, we expect the domestic industry to grow at an annual 3% to 5% with export growth in excess of 10%. We at TAFE are confident of growing faster than market growth in both domestic and export with an estimated volume of 2 lakh tractors this year. Besides, TAFE is investing in expanding into a range of specialized and self-propelled farm equipment like paddy transplanters and harvesters for domestic and international markets. We are also leveraging our strong manufacturing capability and quality standards to produce engines for international OEs. Our plans are ambitious and include both organic and inorganic avenues for growth. In many ways you were stepping into the shoes of a giant when you took over as CMD of TAFE from your father A Sivasailam. What were his leadership mantras that have stayed with you as you continue to take the legacy forward? Ethics, quality and human values truly defined him, and we continue to take this legacy forward. These became the bedrock of our culture and we have institutionalized these as the pillars of our value system. By incorporating these into our vision and value statements, we can say with deep conviction we are taking his legacy forward. You have worked closely with your father and he has been your guru and guide. As a continuation of family legacy and corporate leadership, how do you plan to mentor Dr Lakshmi Venu, who after playing a key role, has now taken over as vice-chairman of TAFE? Good succession planning and grooming of next generation leadership are essential for continued success of a business, and I believe, Lakshmi with her experience, drive for excellence, customer orientation and strongly imbibed value systems, is well positioned for leadership. Working alongside my father was the biggest learning experience for me, and having benefited from this, it will be my endeavour to share the best of my experiences and learning with Lakshmi. Do you think women CEOs look at corporate leadership differently? Women leaders are very passionate about what they believe is in the interest of the organization and will strive towards this uncompromisingly. This defines them. Looking at the industrial environment of Tamil Nadu, what do you think are the state's real strengths and what are the areas where it needs more work? Tamil Nadu's intrinsic strength is its enormous depth of manufacturing. It is dotted with units across sectors that include automotive, manufacturing and service sectors like IT and healthcare. The education levels of people are high with a mature industrial culture. It has a good progressive government, far-sighted sectoral policies all of which foster inclusive growth. Women participation in the workforce is very high. The state offers good opportunities to drive innovation through the academia- industry interface. TN is one of the fastest growing states in the country and has a well-laid plan for its ambitious growth. To maintain its pre-eminent positioning, a strong and continuous emphasis on building capability in line with rapidly changing technology, manufacturing and capacity development should be a key thrust area. New sectors for growth also need to be explored, like tourism – including religious, cultural and wildlife tourism – which has good employment generation potential.
Time of India
03-07-2025
- Business
- Time of India
Tafe, AGCO end dispute over tractor brand
Indian tractor maker Tafe and US-based agri-machinery company AGCO have reached a "comprehensive settlement and resolution" after months of disagreement over brand rights, among other issues, which had led to legal proceedings. The agreement, which resolves all disputes between Chennai-based Tractors and Farm Equipment (Tafe) and AGCO, will make Tafe the exclusive owner of Massey Ferguson brand for India, Nepal and Bhutan. Under the settlement, Tafe will buy back Agco's 20.7% stake in the company for $260 million. This will make Tafe a wholly owned subsidiary of the Amalgamations group. Tafe will retain its shareholding in AGCO at an ownership level of 16.3%, and not exceed it, while participating in AGCO's future buyback programmes. Tafe will remain a long-term investor in AGCO through periodic interactions with AGCO leadership, said a Tafe statement. All commercial agreements between Tafe and AGCO will be mutually terminated. However, Tafe will honour outstanding supply orders and continue to supply parts for all markets on agreed terms, the statement said. It will also mean that all ongoing legal proceedings will be unconditionally withdrawn. "A consent decree will be sought in the three suits relating to Massey Ferguson brand-currently pending before the Madras High Court in India," said the Tafe statement. The agreements will become effective following the completion by AGCO and Tafe of certain governmental and other processes in India relating to the repurchase of the shares held by AGCO in Tafe. "We recognize and cherish the long partnership we've had with Agco and continue to support Agco as an engaged shareholder," said Mallika Srinivasan, CMD of Tafe. Tafe and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years," she added. In Sept 2024, AGCO Corporation terminated multiple agreements with TAFE, including the Massey Ferguson brand license agreement, a distributor agreement for India, Nepal, and Bhutan.
The Print
02-07-2025
- Business
- The Print
TAFE, AGCO settle feud over Massey Ferguson brand outside court
Under the settlement, ownership of the Massey Ferguson brand will rest with TAFE as the sole and exclusive owner for India, Nepal and Bhutan. TAFE said it will hold all rights, title and interest in 'Massey Ferguson' and related trademarks and all goodwill associated therewith. In separate statements, the two companies said they have settled all matters relating to the Massey Ferguson brand, commercial issues and shareholding, thus ending their corporate feud. New Delhi, Jul 1 (PTI) Tractors and Farm Equipment Ltd (TAFE) and AGCO Corporation on Tuesday announced a comprehensive out-of-court settlement of all outstanding disputes, with the Indian firm agreeing to buy out the US-based firm's shareholding in it for USD 260 million (nearly Rs 2,225 crore). Besides, TAFE will buy back AGCO's shares in itself, which amounts to 20.7 per cent of the domestic tractor maker's equity, for a consideration of USD 260 million, making TAFE a wholly-owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate, headquartered in Chennai, it added. TAFE will also retain its shareholding in AGCO at an ownership level of 16.3 per cent and not exceed it, while participating in AGCO's future buyback programs to maintain its proportionate ownership subject to certain exceptions, it stated. As part of the settlement, TAFE will support AGCO by voting its shares in favour of all the recommendations of AGCO's Board of Directors at shareholder meetings, subject to certain exemptions, the Chennai-based firm said. Besides, TAFE will remain a long-term investor in AGCO, it added. While all commercial agreements between TAFE and AGCO will be mutually terminated, TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms, it stated. AGCO, in its statement, said, 'Parties have agreed to mutual non-disparagement and TAFE not engaging in public activism. TAFE will no longer be entitled to nominate a representative to the AGCO Board of Directors and AGCO's Director on TAFE's Board will step down.' The two companies said their agreements will become effective upon the completion by AGCO and TAFE of certain governmental and other processes in India relating to the repurchase of the shares held by AGCO in TAFE. 'As we step into a new era in TAFE's growth story, we recognise and cherish the long partnership we've had with AGCO, and continue to support AGCO as an engaged shareholder,' TAFE Chairman & Managing Director Mallika Srinivasan said. Stating that TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years, she said, 'We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India.' AGCO Chairman, President and CEO Eric Hansotia welcomed the reaching of an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters. 'We appreciate the TAFE relationship for its years as a commercial partner and continued support as a shareholder. AGCO's Board and management team are fully focused on our Farmer-First strategy, which we believe will improve outcomes for farmers, drive operational success for our company and deliver strong returns for shareholders,' Hansotia said. AGCO said it will file the agreements with the US Securities and Exchange Commission. Last year in September, AGCO Corporation terminated multiple agreements with TAFE, including the Massey Ferguson brand license agreement, a distributor agreement for India, Nepal, and Bhutan. Subsequently, a legal battle followed with TAFE taking the matter to the Madras High Court. PTI MSS RKL MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
