Baddi farm to invest Rs 30 cr in tractor unit

Baddi-based Indo Farm Tractors & Motors Ltd(ITML) will infuse fresh capital of Rs. 30 crore to increase its production capacity. With the new investment, the company would be able to roll out 1000 tractors per month, from 600 tractors per month currently.

Moreover, the company has tied up Ursus Diesel Company Ltd.(Warsaw, Poland) for marketing purposes and it is planning to enter European Market for tractors and related components.

Incorporated in 1994, the company join hands with Ursus Diesel Company Ltd(Warsaw, Poland) in 2000 for sourcing completely assembled engines. The Company has since indigenised the engine components, manufacturing and assembly process and accordingly stopped importing engines in March 2003. In May 2006, the company has developed technical capabilities and commenced export of engine components to Poland in May 2006. Currently, the Company produces tractors in the range of 30HP - 65 HP.

Talking to Business Standard, Vice President, C N Dhar said, " The demand for tractor is phenomenal, so the need of the hour is to tap the potential. We are already present in northern and Western Region and now we are targeting southern and eastern region."

He further added, " In order to strengthen our presence, we are going to increase our dealer networks and specially we are going to focus the southern and eastern region." At present, it has about 400 dealers, which would be further increased in the present fiscal. As a part of marketing campaign, the company would be organising free service camps for tractors also.

He further added, " We would infuse fresh capital of Rs. 30 crores to almost double our current production capacity. After new investment the production would touch 1000 tractors per month from 600." He further added that the company has tied up with Poland firm, Ursus Diesel Company Ltd. for marketing the tractor in the European market and to export engine components. Presently, the company is exporting only engine components to Poland. Also, it export tractors to Nepal.

Also, as a part of marketing strategy the company would also be coming up with new models. The turnover of the company in the last fiscal was Rs. 125 crores, and this year they are targeting to achieve Rs.200 crores.

Currently, the company has market share of 3 per cent in India. Moreover, with the increased capacity, and new markets the company is hopeful to increase its market share in tractor segment and targeting to capture 5 per cent market share.

When asked, whether the company has plan to roll out high powered tractors, he said, " Considering the size of land, there is not requirement of high powered tractors in India, so we don't have any plan.

Commenting on further plans, he said, " We are planning to increase cost competitiveness through backward integration by setting up a casting, forging, gear unit leading to component cost benefit, faster adaptation of production cycles to market demand and reduced inventories."