Ratnagiri Impex Pvt Ltd, a Bangalore-based importers and distributors of farm equipment, is planning to set up a joint venture with Italy-based Oleo-Mac, makers of garden equipment, to manufacture a variety of agriculture machinery in Bangalore. The company, which currently imports machinery from Oleo-Mac and markets in India, is in the process of establishing its retail network across the country.
“We have been distributing agriculture machinery for the past one decade and now we are in negotiations with Italy’s Oleo-Mac to set up a manufacturing unit in India.
The farming activity has been witnessing mechanisation rapidly in our country due to shortage of farm labour in most of the parts due to urbanization. It is right time for us to set up our own manufacturing and we have chosen Italian firm to do this,” S A Gopala Krishna, director, Ratnagiri Impex said.
He said the company plans to set up the manufacturing unit in the next two years at an estimated cost of Rs 20 crore. Towards this end, the company is in the process of putting in place a proper retail distribution network.
It plans to open a network of 70 franchisees to distribute its wide range of agriculture machinery during this year in the states of Karnataka, Andhra Pradesh, Tamil Nadu and Kerala at an investment of Rs 14 crore. The network will be expanded into 300 locations in the next three years, he said.
Speaking to reporters, here today, S A Vasudevamurthy, chairman and managing director, Ratnagiri Impex Pvt Ltd said the company’s retail network will be set up under the brand name of ‘Agrimart’. It will be a one-stop-shop for all kinds of agriculture machinery, will provide training in the usage of equipment by trained personnel, offer spares and after sales service to farmers in the neighbourhood. The Agrimart will also offer demonstration of the equipment and help manufacturers reach out to the farming community directly, he said.
Ratnagiri's first Agrimart outlet will be opened in Davanagere on August 8. Each outlet will entail an investment of around Rs 20 lakh, of which the company will bear 25 per cent cost and the balance will have to be put in by the franchisee owner. Each outlet is expected to make a business of around Rs 60 lakh per year, Vasudevarmurthy added.
To begin with, the Agrimart outlets will sell 200 types of machinery from 12 manufacturers from Japan, Taiwan, Italy and the US besides from India. Some of the companies’ products that will be on sale include Oleo-mac, Comet, Unigreen, Bartalomi and Coima from Italy, Tsumura, Zenoah, Honda and Mitsubishi from Japan and Agrimate from India among others.
The machinery available at these outlets can be used for soil preparation, harvesting, spraying and weeding among others.
Ratnagiri Impex, which reported a rise of 66 per cent in its sales at Rs 40 crore in 2008-09, is aiming at a growth of around 50 per cent during the current year.
