Mahindra and Mahindra's farm equipment division has picked up 35 per cent stake in Finland's Sampo Rosenlew, a combined harvester specialist, for 18 million.

This is Mahindra's second global acquisition in the farm mechanisation space in the last two years.

The company had picked up 31 per cent stake in Japanese company MitsubishiAgricultural Machinery.

The latest acquisition will be aimed at creating an emerging market portfolio for Mahindra Sampo combined, apart from diversifying into harvesters for different crop beyond grains, which is Sampo's speciality.

This tie-up will help Mahindra get access to high tech harvesters to be introduced globally and Sampo with the help of Mahindra will be able to expand more aggressively in the emerging markets of Asia and Latin America.

The R&D centre of Sampo will become the hub for development for harvesters globally.

Pawan Goenka, ED of M&M, said the company is redefining the strategy for farm equipment business.

"This is part of our grand strategy of how do we go beyond tractors and beyond India and become truly global. We have a significant presence in India, US and China with tractors, with the acquisition of MAM in Japan for rice transplanters and harvesters and now this acquisition, we are looking at growing this mechanisation business," added Goenka.

Established in 1957, Sampo is a family run enterprise which generates a turnover of 93 million annually and sells about 1200-1300 units of 100-300 horsepower combined harvesters.

It is a profitable company and considered amongst the top three to four players in Europe dealing in small to mid-size grain harvesters.

The company say the opportunity is huge, and Goenka says "we are just taking our baby steps."