Companies

VST Tillers Tractors partners Czech firm, to invest Rs 200 crore for capacity expansion

Anil Urs Bengaluru | Updated on January 31, 2020 Published on January 31, 2020

VST Tillers Tractors, an agri-machinery maker, which has partnered with Czech-based Zetor Tractors to jointly manufacture tractors with higher horsepower (HP) for Indian and global markets, is investing around Rs 200 crore for capacity expansion.

"Tractors with 50 HP and 70 HP will be made in our plant, whose capacity will be expanded by 30,000 units per year with an investment of Rs 200 crore,” said Antony Cherukara, chief executive of VST.

The Bengaluru-based company, which is 53 years old, has production plants at Malur and Kolar in Karnataka, at Hosur in Tamil Nadu for power tillers, and another plant at Mysuru for components and other farm machinery.

The plant has been making 36 HP compact tractors, with 25,000 units per year capacity, over the last four years.

"As our joint venture partner, Zetor will transfer its technology to us to make higher horsepower tractors and be our channel to hard-sell them in global markets where it has a large presence," Cherukara said.

Martin Blaskovic, Chairman, Zetor, who signed the agreement with VST Tillers Tractors, said, “Ours is a 75-year-old company specialising in high-end horsepower tractors for Czech Republic and exports them to 56 countries. About 80 per cent of our annual production (1.3 million units) is exported.”

According to Cherukara, the company in the first phase will make 50 HP tractors over the next 20 months and 70 HP tractors in the second phase from mid-2021 for the Indian market and scale their production for exports from 2022.

“Though we will remain a leader in the compact tractor and power tiller segments, we will strive to be a major player in the higher power tractors to benefit the Indian farmer and achieve break-even in the next four years,” said VK Surendra, Chairman, VST.

Published on January 31, 2020
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