Mahindra Enters Global Combine Harvester Business
Acquires 35% equity stake in Finland-based Sampo Rosenlew
Companies will jointly grow Sampo Rosenlew's Combine Harvester business globally
Mumbai, March 31 2016: Mahindra & Mahindra Ltd (M&M Ltd), a part of the USD 16.9 billion Mahindra Group, headquartered in Mumbai, India, today announced its foray into the global combine harvester business, by entering into a strategic partnership with Sampo Rosenlew, a combine harvester company based in Pori, Finland.
Under the transaction, which is expected to close by June 30, 2016, Mahindra will acquire a 35% equity stake in Sampo Rosenlew. The two companies will work in tandem to grow their combine harvester business globally.
Commenting on the development, Dr. Pawan Goenka, Executive Director, M&M Ltd. said "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."
Mr. Rajesh Jejurikar, President and Chief Executive, Farm Equipment & Two Wheeler, M&M Ltd. 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."
Sampo Rosenlew is a European combine harvester company, renowned world-wide for mid-sized combine harvesters. A cash positive, profitable company, Sampo Rosenlew is poised for further growth in the global markets. In FY2014-15 Sampo Rosenlew had a stand-alone revenue of Euro 93 million. The company is also a joint venture partner in a combine harvester company in Algeria which had revenues of Euro 45 million in FY2014-15. Further, it has built a significant business in its core markets of Europe, Eurasian countries and North Africa.
Together with its existing strategy in the core markets, Sampo Rosenlew will also develop a new range of combine harvesters for developing markets and for specialty crops. Mahindra and Sampo Rosenlew will jointly focus on the combine harvester business in Asia, Africa and Eurasian Economic Union countries.
About Sampo Rosenlew
Sampo Rosenlew Ltd is a family owned company that employs approximately 450 people and has a turnover of Euro 93 million. The company is located in Pori, Finland. The company's main products are combine harvesters and forest harvesters with combine harvesters accounting for nearly 70% of net sales. Sampo Rosenlew currently sells its machines to over 50 countries and exports approximately 90% of its products. The main markets are Europe, CIS countries and North Africa.
The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.
A USD 16.9 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.
In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.
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