TAFE to invest Rs 100 crore in MP plant

To broaden product portfolio and corner a larger share in the tractor market of Madhya Pradesh, Amalgamations Group company Tractor and Farm Equipment Ltd (TAFE) will invest Rs 100 crore in its Mandideep plant (about 18 km from Bhopal), which it acquired from Eicher last year.

However, the company is yet to discuss sops and concessions with the government. "We will invest the amount in two to three years, which will involve a technical upgrade at the plant and product development," Mallika Srinivasan, director, TAFE, said adding, "We will broaden our platform to 90 HP tractors and will have a very wide range that will boost our growth as well as our market position."

The company, she said, was eyeing a 3 percentage point increase in volume--from 22 per cent registered this year to 25 per cent next year.

The Chennai-based tractor and auto equipment company is upbeat on growth after moving its logistics and supply chain system to a central location (Mandideep).

"We have launched six models in the 25-60 HP segment. Another air-conditioned model will also be available in the Mandideep market soon," she added.

The company has improved the performance of the plant by utilising its full capacity by starting another shift. Earlier, Eicher was running the plant in one shift.

"The tractor industry is expected to grow by 15 per cent this year and we will be utilising the full capacity of the plant. We will stay close to areas providing good markets, like Madhya Pradesh, Uttar Pradesh and Rajsthan. In fact we are not a southern company now," she added.

Chief Minister Babulal Gaur has rolled the company's first 25 HP product on the TAFE platform. He assured the company of all possible support. The company has not decided about increasing the headcount at the plant.