Chennai-based tractor company Tractors and Farm Equipment Ltd (TAFE) has entered into a strategic alliance with Rajkot, Gujarat-based Captain Tractors Pvt Ltd for manufacturing tractors with up to 20-horsepower (hp) engines.

The latter will design, develop and manufacture application-focused compact sub-20 hp tractors for TAFE, according to a release here on Tuesday.

This is an exclusive arrangement with TAFE. The final contours of the arrangement are expected to be rolled out in the first quarter of the next financial year.

While TAFE will extend reach of these tractors through its pan-India network, Captain Tractors dealers will continue to sell and service these tractors as part of the network.

The $1.3-billion TAFE is India's second largest tractor manufacturer, and among the top three globally, with tractor models in the 25-100 hp range. A significant percentage of its tractors are exported to 67 countries.

Captains Tractors is making tractors since 1998, with a range of special attachments promoting diverse use of the tractor for a variety of crop applications both on and off farms.

Captains Tractors, having a capacity to manufacture 12,000 tractors annually, received two national awards in 2008 for research and development and entrepreneurship in the mini-tractor business, said Mr Rajesh Patel, Director.

The arrangement will provide value-added offerings that will benefit small landholders in the country, said Ms Mallika Srinivasan, Chairman, TAFE.

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