Mahindra & Mahindra is working on more than a dozen new products in the non-tractor farm machinery segment and dealership rejig to grow its nascent farm machinery business exponentially over the next five years.

The top tractor maker’s plan for quantum growth in the farm machinery segment has been prompted by increased demand in the market and brighter prospects of agri mechanisation in the country. The farm machinery market (excluding tractors) was estimated at ₹9,300 crore in FY22.

“As leaders in tractorisation of India for several decades, we are now determined to grow our farm machinery business by 10 times in 5 years,” said Hemant Sikka, President of the Farm Equipment Sector (FES), Mahindra & Mahindra Ltd.

Also read: Tractor industry revises FY23 growth guidance upwards to low double digits

The company has already planned a cumulative investment of ₹3,400 crore across FES business during 2022-24.

In FES, the company makes products across the agri value chain from land preparation – sowing and transplanting – harvesting – post harvesting/material handling. This business grew 40 per cent at about ₹450 crore during the 9 months of FY23.

New products

The company plans to launch a new range of products with the help of its global Centres of Excellence in Turkey, Finland, and Japan.

“We will soon roll out new generation harvesters, boom sprayers, loaders, etc. Also, 15 new products are being developed in-house,” said Sikka.

The company has established a new exclusive farm machinery (FM) plant at Pithampur in Madhya Pradesh, spread over 23 acres and can manufacture 1,200 combine harvesters and 3,300 rice transplanters per year. The unit, along with its dedicated supplier park, will also manufacture products for export to global markets in Asia, Africa, Europe, and the Americas.

Also read: VST Tillers & Tractors to launch its Zetor premium tractor range in this quarter

On the retail side, the company’s rethinking its tractor network, consisting of 2,220 dealers selling Mahindra and Swaraj tractors, to market differentiated farm machinery products as well to increase sales and service reach for these products. It will also have some independent farm machinery dealers.

In addition to the organic expansion, the company has also acquired stakes in agri start-ups and other farm machinery manufacturers.

Also read: Mahindra buys Omnivore’s stake in orchard sprayer maker MITRA Agro Equipment

Non-tractor farm machinery

The non-tractor farm machinery industry is broadly divided into two types – tractor-mounted machinery and self-propelled /hand-driven mechanised/ power farm machinery.

“Since India has a comparative advantage in tractors, tractor-mounted machinery is a complementary good that has a domestic market among large farmers and in developed countries. Self-propelled/hand-driven mechanised farm machinery has a domestic market in small and marginal farmers and emerging and developing countries with similar socio-economic structures, such as Asia and Africa, says a report by the National Council of Applied Economic Research (NCAER).

“India needs a vision for the next 15 years to convert itself into a production and export hub for non-tractor farm machinery. Policies should address current challenges and act as accelerators to convert India’s dual farm machinery market into an advantage by producing a range of equipment that caters to farmers around the world,” it added.

Related Topics
comment COMMENT NOW