India’s Mahindra Group, has made a foray into the global combine harvester business, with a strategic partnership with Finnish harvester manufacturer, Sampo Rosenlew.
Mahindra & Mahindra Ltd, will acquire a 35 per cent equity stake in Finnish family owned company, Sampo Rosenlew.
The two companies will work in tandem to grow their combine harvester business globally.
M&M executive director, Dr Pawan Goenka, said Mahindra is the world’s leading tractor company by volume, with a presence in world markets including India, USA, China and Japan.
“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,” he said.
M&M Ltd chief executive Rajesh Jejurikar said the deal will help Mahindra grow in the global harvester business.
“The two companies will work closely towards taking Sampo’s combine harvesters to new markets globally, including India,” he said.
Sampo Rosenlew manufactures mid-sized combine harvesters and is cash positive and profitable and says it is poised for further growth in the global markets.
The company is also a joint venture partner in a combine harvester company in Algeria and has significant business in its core markets of Europe, Eurasia and North Africa.
Jali Prihti, CEO of Sampo Rosenlew, said the strategic partnership with M&M is a natural step towards the world’s fastest growing markets in Asia, Middle East and Africa.
“With this collaboration we aim to increase the manufacturing volumes in combine harvesters and components,“ he said.
Sampo Rosenlew will develop a new range of combine harvesters for developing markets and for specialty crops.
Grain harvesters and forestry equipment account for nearly 70pc of net sales and exports about 90pc of products.