The Hindu Business Line : TN plant to make Italian tractors for sale in China

On track: Mr Andrea Bedosti, Executive Vice-President of Sales and Marketing, Same Deutz-Fahr; Mr Francesco Carozza, Chairman, SDF India Pvt Ltd; Mr Shripad Shidore, CEO and Managing Director of Same Deutz-Fahr India, and Mr Vijay Raina, President and CEO, Same Deutz-Fahr, North America, at the launch of Deutz-Fahr brand of tractors in Chennai on Wednesday. —

Our Bureau

Chennai, March 4 Same Deutz-Fahr India Private Ltd, the wholly owned subsidiary of €1.2 billion Same Deutz-Fahr Group, will soon become the sole manufacturing facility for engines that are compatible up to Euro 3 emission norms.

The parent company plans to close down its engine plant in Italy and shift the machinery over to Ranipet, near Chennai. The Ranipet plant will make tractors for sale in China, according to Mr Franscesco Carozza, Chairman of Same Deutz-Fahr India.

Engine capacity

The company intends to spend Rs 25 crore on expanding its engine and tractor capacity at Ranipet, he said today. The engine capacity will be raised to 15,000 units from 6,000 now. Tractors capacity will go up by 1,500 units to 4,500 units.

Mr Carozza said that 70 per cent of the 1.1-million tractors manufactured globally have engines that conform to Euro-3 or lesser standards. Since these engines can be competitively produced in India, the Group has decided to shift its production to India. Same India also intends to make engines for gensets and construction equipment, he said.

Tractor launched

Mr Carozza today launched Deutz-Fahr brand of tractor — Agrolux — with 85 per cent local content. The new tractor comes with three engine capacities — 50 hp, 60 hp and 70 hp — with starting price of Rs 4.5 lakh.

The current market size for tractors over 50 hp in India is around 35,000 units and it grew four times in the last four years.

The new tractor will help Same cash in on this growth. Same India has been manufacturing these tractors for few export markets including Africa, Europe, West Asia and the US. The company also makes Same range of tractors in sub-50 hp category.

Same India will soon commence exports of tractors in all ranges to China till the Chinese facility commences production by the end of 2009.

Later, India will produce sub-70 hp tractors for Same’s global customers, while the Chinese plant will make higher capacity machines — 80 hp to 100 hp.

“Our strategy is to focus on new geographies and create hub and spoke model,” said Mr Vijay Raina, Director of Same in India.

More Stories on : Outlook | HCV/LCV/Tractors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page