Mahindra & Mahindra Ltd (M&M) announced on Thursday, March 31, its entry into the global combine harvester business by acquiring 35 percent equity stake in Finland-based Sampo Rosenlew. Under the deal, which is expected to be completed by June 30, 2016, both companies will work in tandem to grow their combine harvester business globally.
Sampo Rosenlew Ltd is an agricultural machinery company based in Pori, Finland, which employs approximately 450 people and has a turnover of â‚¬93 million. The company is also a joint-venture partner in a combine-harvester firm in Algeria which had revenues of â‚¬45 million in FY2014-15. The strategic partnership of M&M and Sampo Rosenlew is expected to focus on developing the combine harvester business in India, China, Africa and the Middle East.
"Today, Mahindra is the world's leading tractor company by volume, with an on ground presence in India, USA, China and Japan, besides many other export markets. We are now putting in place a strategy to build a full product line of farm equipment that goes beyond tractors and with this we will compete globally in both advanced and developing markets," said Pawan Goenka, executive director, M&M, in a statement.
"The strategic partnership is a natural step towards the world's fastest growing markets in Asia, Middle East and Africa together with the strongest possible partner. With this collaboration we aim to increase the manufacturing volumes in combine harvesters and components in Pori," said Jali Prihti, CEO of Sampo Rosenlew Ltd.