A recent trend of shortage of labour in Punjab has gifted multinational firms in the harvesting sector the prospect of exploring business possibilities in the state which is considered as the country’s granary. Global conglomerates like Germany’s Claas and America’s Deere & Company have set up operations in the state, having sensed Punjab to be the largest market for combines harvester in India.
At present, the market is dominated by about half-a-dozen local manufacturers that have base in the state and cater to the domestic market. But, this dynamics can change sooner than later.
In fact, the commencement of operations by MNCs will give the Punjab farmer access to world-class technology even as it would give tough competition to the homegrown companies, according to experts.
This, when indigenous companies manufacturing harvesters cater to not just the domestic market amid competitive pricing; also export their product to countires including Sri Lanka, Nepal and those in South Asia, besides Iraq, Iran and even those in southern Africa. The recent arrival of such MNCs is, thus, likely to affect their sales in the near future. Already buoyed by the response from the domestic market, Harsewinkel-based Class’s subsidiary, Claas India Limited, is planning to increase its capacity by setting up a plant in Punjab’s Morinda so as to manufacture self-propelled combine harvester.
The company has plans to increase its manufacturing capacity from 1,500 to 2,000 units per annum. It has invested over Rs 100 crore in the facility.
Recently, John Deere, based at Moline in Illinois, set up its first combine factory in Punjab. The 1837-founded company has earmarked $30 million to be invested in phases in its combine factory.
Further depending upon the demand, the optimum capacity of the harvester factory would be 5,000 self-propelled harvesters per annum. This, the company, plans to achieve in phases.
“We are committed to catering to the needs of farmers around the world with equipment that enables them to be more productive,” said Samuel R Allen, chairman and chief executive officer of Deere & Company.
According to experts, the farm mechanisation sector is growing at a rate of 20-25 per cent, thus pointing to a big time for manufacturers.
Sonalika Agro Industries Corporation director Rajesh Thakur says it is the shortage of labour in Punjab that has led to a rapid growth in the farm mechanisation sector in rural Punjab of late. “It is the quality, competitive pricing and service that are the driving manufacturers like us. Based in India, we have better understanding of the environment.” Echoing similar sentiments, officials of Patiala-based Preet Agro Industries Pvt Ltd says high quality, low cost and trouble-free maintenance are driving the farm mechanisation manufacturers of Punjab. The company is one of the leading combine harvester manufacturers, and has a market share of 35 per cent in the country’s self-propelled combine harvester category.
“We also export products — to Pakistan, Myanmar, Nepal, Sri Lanka, Bhutan, Afghanistan, Bangladesh, South Africa, Sudan, Saudi Arabia, Egypt and Iraq among others. Besides that the company also manufactures tractors and agricultural implements,” according to one of them. Adds another: “Initially we were producing straw reapers, threshers and other agricultural implements. We later diversified to other products.”
Similar are the views expressed by Barnala-based Standard Combines Pvt Ltd, which is also one of the leading manufacturers of self-propelled and tractor-driven combines (combine harvesters).
The company produces around 1,000 combines per annum and exports to Srilanka, Nepal, South African countries besides catering to domestic market. The company started operations in 1975 and diversified into other farm equipment and tractors.
The exact demand of harvester from India could not be ascertained, given that it is a totally unorganised sector. In fact, no such survey has been done, but estimates peg the annual demand at 3,500 harvesters, including the self-propelled ones in the country.
There will be a credit requirement of about 900 combine harvesters in 2012-13 as far as Punjab is concerned, and according to the potential linked plan prepared by National Bank for Agriculture and Rural Developement.
