India might soon become the global hub for small tractors for CNH Global NV of the Netherlands, earlier known as New Holland, the world's largest tractor producer.
"The Indian operations could soon become a centre of excellence for small tractors," New Holland Tractors (India) Pvt Ltd managing director T L Palani Kumar said.
The tractors are of 70 hp and below. At present, Ford New Holland makes these tractors in Turkey, Italy, Mexico and Pakistan, apart from India.
If the company decides to make the country a centre of excellence, the global production of such tractors would be concentrated here.
"We are cost-competitive globally in the basic tractors," Palani Kumar said.
What seems to be acting in favour of the domestic company is its track record of product development.
After introducing a 70 hp tractor in 1998 and a 50 hp the next year, New Holland Tractors (India) introduced a 42 hp tractor, which is totally indeginised and priced at a small premium over the competing models.
"We worked with our vendors towards a target price and were able to achieve it," Palani Kumar said, adding, "We are giving the customer features of a higher horse power tractor at affordable prices."
The company plans to follow it up with a 35 hp tractor next year. This too will be totally indeginised and priced competitively.
"The existing products are in the Rs 2.25-2.50 lakh price category. We will try to be as close to it as possible," Palani Kumar said.
He said with this, the company would have a complete portfolio of products. "Between these four products, we will have covered almost 85 per cent of the market. We feel that smaller horse power tractors than 35 hp are a dying market," Palani Kumar said.
New Holland Tractors (India) is also looking at increasing the number of its dealers from the current 60 to over 2000. Its plant is located at Dadri near Delhi.
Commenting on the prospects for the industry, Palani Kumar said he expected the market to register a de-growth of 4-5 per cent during the year as against a de-growth of 8-10 per cent during the last year.
New Holland Tractors (India) ended 2000 with a turnover of Rs 175 crore. Palani Kumar hopes the company to double the turnover in the current year.
