Mahindra Buys 35% Stake in Finnish Agriculture Manufacturer
Published On Apr 01, 2016
Indian auto major Mahindra & Mahindra recently purchased a 35 percent stake in Sampo Rosenlew, a combine harvester firm operating out of Finland. The deal was valued at nearly 18 million euros, marking Mahindra's foray into a brand new area that the firm had never tested before.
Mr. Nalin Mehta, CEO of Mahindra & Mahindra's truck and bus division, said, “Our Mileage guarantee is a clear vindication of our engineering excellence and our resolve to provide better value proposition to customers. The service guarantee is the outcome of our strong focus on after-sales network by leveraging group synergies and organic growth in the service touch points and spares retailer network. Continuous product innovation and customer centricity is at the core of MTBD which has made these guarantees possible.”
The deal is expected to be sealed by June 30, 2016. “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 for M&M.
Rajesh Jejurikar, farm equipment and two-wheeler president and CEO of Mahindra, 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.”
Between 2014 and 2015, Sampo Rosenlew generated revenues close to 100 million euros. The company has established a strong foothold in markets of Europe, and other territories such as North Africa.
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