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VST Tillers Tractors Ltd, a leading manufacturer of farm equipment and tractors, seeks to achieve its revenue target of ₹1,000 crore in tractor business by 2025 by way of aggressive expansion into northern markets and slew of new product launches in the higher HP segment.
The Bengaluru-headquartered company has set a overall revenue target of ₹3,000 crore by 2025 with tractor business, which focusses on compact and high HP tractors (above 40 HP), contributing one-third.
While the company has a strong position in the compact tractor segment with a market share of about 11 per cent and revenue size of about ₹400 crore now, it entered the higher HP segment only last year. The company sold about 400 units of its higher HP tractors during H1 of this fiscal, while its total volumes stood at about 1,000 units in FY21.
‘Capacity in place’
But, VST Tillers has already built capacity for the bigger tractors and plans to expand his presence in a rapid way in northern markets. Its overall tractor capacity is about 36,000 units a year.
“VST has never been able to enter into the northern market because we didn’t have the higher horsepower segment. Now we have the products and the initial experience in markets like Uttar Pradesh, Madhya Pradesh and Rajasthan, where our products have started selling and people are coming forward to take our dealerships,” Antony Cherukara, CEO, VST Tillers Tractors Ltd told the investors’ conference call
Today, VST has about 320 dealers for its higher HP tractor business. “We are pretty confident that we will be able to build our network to 800-900 numbers,” he added.
Target segments
The company will focus on two segments in the higher HP tractors – value for money under the brand name VST and premium products under the brand name of Zetor, Czechoslovakian company with which VST has tied-up for premium tractors. The premium tractors from VST-Zetor stable will start coming from next fiscal.
The Zetor tie-up is also expected to strengthen the company’s exports. It is targetting regions such as Africa and Latin America.
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