Patiala (Punjab)-based Preet Group, manufacturer of combine harvesters, tractors and other agricultural implements, has earmarked Rs 100 crore for expansion. The company is planning to increase its tractor manufacturing capacity from 6,000 units to 10, 000 units per annum and combine harvesters to 1,500 units per annum from 1,000 at present.
Speaking to Business Standard, Hari Singh, managing director, Preet Agro Industries (P) Ltd, said, "We are getting very good response for our tractors and harvesters. In order to cope up with the demand, we are planning to increase our manufacturing capacity of tractors and harvesters with an investment of Rs 100 crore. The expansion plan is likely to be completed by next year."
The company has less than 10 per cent market share in tractors, but it is a leading player in harvesters. It has a market share of 42 per cent in self propelled combine harvesters across India (also more than 42 per cent in Punjab) and is one of the leading players.
Punjab is the largest market for combine harvester and tractors in India. Besides catering to the domestic market, it is also exporting its products to Pakistan, Burma, Nepal, Sri Lanka, Bhutan, Afghanistan, Bangladesh, South Africa, Sudan, Saudi Arabia, Egypt and Iraq.
The shortage of labour in Punjab has opened opportunities not only for the domestic players but also for the multinationals, especially in the harvesting sector. Currently, the market is dominated by about half a dozen local manufacturers who have base in the state and are catering to the domestic market. With indigenous technology and competitive pricing, not only these manufacturers are catering to domestic market but are also exporting to other countries.
Considering Punjab as the largest market for combines harvester in India, Multinationals like Germany-based CLAAS and Illinois based-Deere & Company has set up their operations in the state.
Although the exact demand of harvester from India could not be ascertained as it is totally unorganized sector, and no such survey has been done, but as per the estimates there is an annual demand for 3500-4000 harvesters including self-propelled in the country. As far Punjab is concerned and according to the potential linked plan prepared by National Bank for Agriculture and Rural Developement(NABARD) there is a credit requirement of about 900 combine harvesters in 2012-13.