The Hindu Business Line : SAS Motors to launch low-cost tractors soon

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Hyderabad Jan. 25 SAS Motors, the New Delhi-based company which intends to bring low-cost farm machinery to the average Indian farmer, will soon launch a 35 HP tractor and an improvised `Orchard tractor', in the domestic market.

The 35 HP tractor, to be launched in the next couple of months, would be priced around Rs 2.5 lakhs, substantially lower than the existing competitors. The Orchard tractor will be a variant of the existing 22 HP Angad tractor, explained Mr Gautam K. Das, Executive Vice-President of the company.

Answering questions on how the company could lower the costs, Mr Das said a majority of the components for the tractors were being imported from Laiyang SAS Motors, China. The company has been acquired by SAS and is a major component manufacturer.

SAS Motors has three manufacturing units in Baramati, Bhopal and Kolkata, where the tractors are assembled after necessary customization at the Chinese plant. "We have the capability to make 400 tractors a month at these plants, working in one shift," he said.

Angad launch

Announcing the launch of Angad, its 22-HP tractor priced at Rs 1.5 to 1.6 lakhs in the State market, Mr Das claimed that it was more economical than a pair of bullocks for the farmer. As per calculations, a farmer spends an average of Rs 48,000 a year on a pair of bullocks. This expense includes the costs of buying them, their maintenance and upkeep and takes into account their lifespan, which is about 5 years.

Stating that only 5 per cent of Indian farmers own a tractor, Mr Das felt that with the low cost and efficiency, they now have an attractive option. At present, the company is able to sell about 250-300 units a month.

The limiting factor is the bank's policy towards financing tractors, which stipulates that the farmer should have a minimum landholding of 1.5 ha to 2.5 ha of irrigated land. More than 70 per cent of the farmers have lesser holding, he said.

Targets

Sounding optimistic on the growth of the sector and availability of finances, Mr Das said the company has targeted to sell around 3,000 tractors this year.

To boost sales, they are linking up with a large number of `Agri Clinics' in the country, through their own Angad Krishi Seva Kendra's. These outlets also provide custom hiring of tractors and agri-implement on a rental basis, as well as repair and maintenance service.

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