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Indo Farm Equipment eyes double-digit growth

The Himachal-based tractor maker mulls to expand its operations in making high-power tractors for international market

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Vijay C Roy Chandigarh
Last Updated : Jan 24 2013 | 2:10 AM IST

Despite sluggish growth in tractor market, Himachal Pradesh-based Indo Farm Equipment Ltd, maker of Indo Farm brand tractors is looking at registering double-digit growth in the current fiscal with high-powered tractors. Having launched 90 HP tractors for international as well as domestic market, the tractor manufacturer of high-power segment tractors in India, announced its upcoming 120 HP tractors which can be expanded to 150 HP for the international market.

"High-powered tractors like 90 HP are very much in demand in overseas market. As far India is concerned it is catching up with the advent of corporate and collaborative farming in agriculture sector. These kind of tractors will find large demand for commercial applications as well as for custom hiring because of its higher horse power," informed RS Khadwalia, chairman & managing director, Indo Farm Equipment Ltd.

Elaborating on the technical features, Khadwalia added, "The 90 HP tractors are equipped with the latest features available in major international brands vis-a-vis 12 x12 synchromesh transmission with inching control and higher hydraulic lifting capacity."

"Overall we are targeting to sell 6,000 tractors including exports in the current fiscal as compared to 3,500 tractors we did in last fiscal. Besides Punjab, Haryana and Himchal Pradesh, the new demands for tractors are coming up from Southern India, Madhya Pradesh, Uttar Pradesh and Bihar," he added.

Notwithstanding competition from internatioanl players, Khadwalia informed that the strength lies in Company’s reasearch & development. Adding, he stated, "We have made a budgetery provision of about 4-5% of the total turnover to be spent on R&D annually to improvise our product keeping in mind aspiration of our customers, and to match international standards. We always strive to have value addition in our product to have edge over other players." The company is eyeing a turnover of Rs 400 crore in this fiscal as compared to Rs 300 crore it did in the last fiscal.

Elaborating on the exports prospect, Khadwalia stated, "As far exports are concerned, the high power tractors will be game changer for the company and expects to double the exports from 500 units to 1,000 units in the current fiscal. The company is looking at new territories for exports like East European countries as well as South America shortly. Also we are getting good response for such tractors from African, West Asia and South East Asian market, he further stated. The company also has expanded its international portfolio by adding new products like harvester combines, silent generators to its existing product range of tractors and pick and carry cranes.

Commenting on the diversification plans, Anshul Khadwalia, executive vice president, marketing and sales of the company stated, "The company ranks 3 player in Pick-N-Carry cranes, and having diversified product portfolio including combine harvesters, silent gensets, has further plans to diversify into farm equipment business in a big way which is pegged at around Rs 6,000 crore. We are launching Rotavators for the farming community which is being indigenously designed and developed, and aggressively looking at this segment eyeing a lion share in Northern Region market."

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First Published: Dec 04 2012 | 3:55 PM IST

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