The Hindu Business Line : SAME Deutz-Fahr to source components, engines from India

"We are looking to export components worth Rs 40 crore in three years to the SAME plants located in Europe. We already have about 180 suppliers in India and are working with 15-20 of them for exports to the parent company as well," Mr Kamal Bali, Managing Director, SAME Deutz-Fahr India, said. The company would be exporting machined/fabricated components as well as castings and forgings.

The Indian subsidiary also plans to export diesel tractor engines from India and is in the process of upgrading its engines to meet Euro II emission norms, which would facilitate the same.

The company expects to export about 3,000-5,000 engines after the new Euro-II compliant engine is ready next year, Mr Bali said. SAME's engine plant has a capacity of about 15,000 units per year.

Meanwhile, the company is also currently in talks with a few domestic players including International Tractors to supply engines.

SAME Deutz-Fahr India would be investing about Rs 30 crore this year towards upgrading the engines, setting up a new paint shop and rolling out new products.

The company is set to launch 35 HP and 55 HP tractors this fiscal along with a range of tractors equipped with features such as a 12+3 gearbox, a sychronised gearbox, and a four-wheel drive tractor. The new products are expected to be launched in January 2005. SAME has tractors in the 40 HP to 60 HP range at present.

The company sold about 2,000 tractors (including 150 units for exports) in the last fiscal, which was also its first year of operations in India. It is targeting to grow its sales volumes to 3,500 units (inclusive of about 500 units of exports) this fiscal. In value terms, SAME is expecting to grow its turnover to Rs 100 crore this fiscal, from about Rs 55 crore in the last fiscal.

The company is expanding its distribution network and will be entering the Rajasthan market and some of the southern States this year.

Last year, 80 per cent of SAME's sales came from Punjab, Uttar Pradesh and Madhya Pradesh.

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