The Hindu Business Line : Same Deutz-Fahr to expand Indian operations

Mr Massimo Bordi (left), CEO, Same Deutz-Fahr Group, and Mr Kamal Bali, Managing Director, Same Deutz-Fahr India (P) Ltd, at a press conference in Chennai on Tuesday. — Bijoy Ghosh

Chennai , Dec. 14

THE Same Deutz-Fahr group, Europe-based tractor and industrial diesel engine manufacturer, plans to invest Rs 60 crore over the next three years to expand its Indian operations.

The group's wholly owned subsidiary, Same Deutz-Fahr India (P) Ltd, will introduce four new tractors in the next one year and also get into the manufacture of higher horsepower diesel engines. At present, it sells four tractor models and two versions of engines in the domestic market. The parent group will also increase its purchase of components from India.

Same Deutz-Fahr India manufactures tractors and diesel engines at its plant at Ranipet, in Tamil Nadu which has a capacity to produce 10,000 tractors and 15,000 diesel engines.

With the proposed investment, its capacity will go up to 15,000 tractors and 50,000 diesel engines, the Same Deutz-Fahr officials told a press conference here on Tuesday.

Mr Massimo Bordi, Chief Executive Officer, Same Deutz-Fahr group, said the group would use the Indian operations to tap emerging and growing markets in West Asia and other parts of Asia. The Indian company would be used to produce tractors and diesel engines, of proven quality and with the latest technology, for markets that are also price sensitive.

The group has so far invested Rs 120 crore in the Indian operations and the proposed investment over the next three years would come in as equity. Same Deutz-Fahr India's equity now stands at Rs 74 crore.

Mr Kamal Bali, Managing Director, Same Deutz-Fahr India, said that four tractor models — 35 HP, 40 HP, 45 HP and 55 HP — would be launched during the course of 2005. With this, the company would have models covering 73 per cent of the Indian tractor market, which had a total volume of 1,75,000 units this year. By the end of next year, the company would also get into the upper end of the market with tractors having 63 HP and 70 HP engines.

The company hoped to end 2004 (January-December financial year) with sales of 3,000 tractors and expected a turnover of Rs 100 crore against Rs 40 crore in 2003. Next year, it hoped to make a profit.

Mr Bali said with the expansion, the company would be in a position to produce engines up to 140 HP and would become an export base for the group.

Mr Bordi said that the group would source components worth Euro 1 million (about Rs 6 crore) in 2004, which is expected to go up to Euro 5 million (Rs 30 crore) next year.

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