The Hindu Business Line : New Holland Tractors investing Rs 250 cr to raise capacity

Ahmedabad, Sept. 12 New Holland Tractors (India) Pvt Ltd, a 100 per cent subsidiary of CNG Global N.V. and part of the $91-billion Fiat Group, will invest Rs 250 crore to enhance its production capacity in the next three years at its Greater Noida-based plant near New Delhi.

The leading manufacturer of a range of tractors and farm equipment is expanding its existing manufacturing facility, spread over 60 acres, to produce nearly 50,000 tractors by 2011. In 2008, the company plans to manufacture 28,000 tractors at the plant whose current production capacity is 35,000 tractors a year, Mr Anil K. Sinha, Director (Manufacturing), told Business Line here.

New Holland, which set up its Noida unit in 1998 with an investment of Rs 300 crore, had a CAGR of 33.8 per cent in the 2001-07 period, against an industry CAGR of 7.9 per cent, said Mr Amitabh Bansal, Ditrector (Sales and Marketing), after the launch of the new offering, the 37 HP New Holland 3037 NX tractor in Gujarat, here.

The sale of the company’s tractors increased from 4,073 in 2000-01 to 23,319 in 2007-08. In Gujarat, the sale doubled from 1,000 in 2001 to 2,000 this year, he said. Among the 51 countries where it exports, Australia, the US and Brazil are the most mature markets for agricultural equipment.

The latest product having new features boasts of the modern European Farming Technology and is aimed to strengthen the company’s position in the 31-40 HP segment.

It sees Gujarat, the largest cotton grower in India, as a major market for its another product, the cotton picker, Mr Bansal said. “Despite the industry remaining flat this year, we are aiming to achieve a 25 per cent growth in sales through 30 dealers in this State.”

With the launch of New Holland 3037 NX, the company now offers a line up of three high-performance tractors in the 31 to 40 horse power tractor segment, the other two being products with 35 and 40 HP. It also offers products in the 40-75 HP range.

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