M&M Enters Combine Harvester Business With Finnish Acquisition


Mahindra & Mahindra is making headwinds into the global scenario. The company has embarked on a venture with the combine harvester business with its acquisition of 35% stake in Finland’s Sampo Rosenlew. This ambitious venture is seen as Mahindra’s attempt to tap into the potential of global markets. In addition, both the companies have planned to work together in order to grow their combine harvester business in the international scenario.

MahindraAFS_Harvester Business

One of the world’s leading companies, Mahindra and Mahindra leads by capacity and exports its products to countries like US, Japan, and China. M&M is also the market leader in the tractor segment in India. With the acquisition, the company aims to maximize its farm equipment business globally. With this, Mahindra is determined on developing new products for emerging markets through tactical investments.

Known for its mid-sized combine harvesters, Sampo is a European combine harvester company. With individual revenue of 93 million Euros, the company holds a noteworthy presence in Europe, Eurasian countries, and North Africa apart from having a joint venture in Nigeria.

Speaking on the development, Dr. Pawan Goenka, Executive Director, M&M said, “Now we are refining our strategies. 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.”

Rajesh Jejurikar, President and Chief Executive, Farm Equipment & Two Wheeler, M&M said, “Sampo Rosenlew will enable Mahindra to grow in the global combine harvester business. The two companies will work closely towards taking Sampo’s combine harvesters to new markets globally, including India.”

ahindraAFS_HarvesterBusiness(2)Sampo Rosenlaw’s CEO Jali Prihti said that they see this acquisition with M&M as an opportunity to grow. He said that M&M would help them become a global player in the agricultural machinery business as well as enter into the new market areas. There are some markets where Rosenlaw lacks resources and Mahindra & Mahindra’s expertise would help them greatly. Prihti perceives this strategic partnership as a natural step towards the world’s fastest growing markets in Asia, Middle East, and Africa together with the strongest possible partner, Mahindra and Mahindra.

Going ahead, Sampo would be developing new smaller and affordable products for the Indian market. Moreover, Mahindra & Mahindra’s innovation centre for combined harvesters would find a place in Sampo’s R&D facility. Furthermore, both the companies would focus on the combine harvester business in Asia, Africa, and the Eurasian Economic Union countries together.

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