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Strategic Perspective Of Present And

Future Opportunities And Challenges Of


Indian Tractor Industry
Presented By -: Anmol Verma
Roll. No.-: PG9009
AGENDA
INTRODUCTION TO THE PROJECT
INDUSTRY PROFILE
DRIVERS FOR THE INDUSTRY
GROWTH OF TRACTOR INDUSTRY
FUTURE OF TRACTOR INDUSTRY
CONCLUSION & RECOMMENDATIONS
BIBLIOGRAPHY

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Mothersonsumisystem is auto component company

business enterprises required vital information to


keep alive it’s day to day business activities.

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Automobile Industry

Light Pass VehicleCommercial Vehicle Tractor Two Wheelers Three Wheelers

PCs/MUVs/SUVs LCVs/M&HCVS/BUSES Passenger Carriers / Goods C


Farm/Earthmoving & ConstructionMotorcycles/Scooters/Mopeds
Equipments

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Tractor

Agriculture Construction equipment

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23.11

13.80

6.72 6.60

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World leading tractor manufacture

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Deere & Company

• Deere & Company, Usually Known By Its Brand Name John


Deere Is An American Corporation Based In Moline, Illinois,
• And The Leading Manufacturer Of Agricultural Machinery In
The World.
• Listed As 107 Place In The Fortune 500 Ranking In 2010.
• A US$23.11 billion company.





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CNH
 A fiat group company.
 CNH manufactures its products in 38 facilities throughout
the world and distributes its products in approximately
170 countries through approximately 11,600 full line
dealers and distributors.

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Mahindra
 Farm Equipment Sector are spread across six continents and in around 25
countries.
 International Operations-
Ø Mahindra USA (MUSA),Mahindra Australia,Africa
Ø (Srilanka, Bangladesh, Nepal), Middle East (Iran, Syria etc) and East Europe
(Serbia and Macedonia; FES has entered the Turkey market .
 Mahindra have 5th largest tractor company of china Mahindra Yueda
Yancheng Tractor Company (MYYTCL)

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AGCO
• AGCO Corporation Is An Agricultural Equipment
Manufacturer Based In Duluth, Georgia, USA. As
A Leading Global Manufacturer Of Agricultural
Equipment.
• More Than 2,700 Independent Dealers And
Distributors In More Than 140 Countries
Worldwide.
• Listed As 337 Place In The Fortune 500 Ranking In
2010.

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Indian Tractor Industry

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Current manufacture of tractor in India…..
1.Mahindra & Mahindra.
2.TAFE.
3.L&T - John Deere.
4.Eicher.
5.Mahindra Gujarat Tractor Limited.
6.New Holland.
7.Escorts (Escort, Powertrac and Farmtrac).
8.Sonalika (International Tractors Ltd.)
9.Punjab Tractors Ltd (Swaraj Tractors).
10.Same Deutz-Fahr Ltd.
11.HMT Tractors.
12.Balwan Tractors, force motors ltd.
13.VST Tillers.
14.Captain Tractors Pvt. Ltd.
15.Crossword Agro Industries.
16.Indo Farm.
17.MARS Farm Equipments Ltd.
18.Preet Tractors.
19.Standard.

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Market Share Of Company In
India

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Leading Company In Tractor
Market Of India 2010
Mahindra
Tafe
Escort
Sonalika
Fiat New Holland
Johan Deere

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Mahindra
Mahindra Tractors Is Number One In Sales In India - The Largest
Tractor Market In The World. And It Has Been The Market Leader
Since 1983.
Its Sales Are Predominantly In The States Of Gujarat, Haryana,
Punjab, Maharashtra And The Southern States.
Its Sales In Gujarat Are Under The Label Mahindra Gujarat And Its
Sales In Punjab Are Under The Label Swaraj. In 1999, Mahindra
Purchased 60% Of Gujarat Tractor From The Government Of
Gujarat.

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+46% growth in 2010

.Of Tractor

*Includes PTL/Swaraj Division Sales From Aug 08 Onwards.


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Total Sale Of Tractor On Domestic
Market

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TAFE

 TAFE is a US $750 million tractor major incorporated in 1960 at Chennai in


India, in collaboration with Massey Ferguson (now owned by AGCO
Corporation, USA) TAFE acquired the Eicher tractors business,
 TAFE exports to 80 countries with major markets being Bangladesh, USA,
Afghanistan, Yugoslavia and Sri Lanka.

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TAFE+EICHER TRACTOR- SALES FY05 TO FY10

CAGR +11.79

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Escorts
Commenced manufacturing operations in 1964 and today has 4
manufacturing plants in India.
Capacity: 98000 Tractors per annum.
Have 3 recognized and well-accepted tractor brands
Since inception, have manufactured over 1.1 million tractors. Current
market share in the tractor segment is 13%.

Escorts 3 Brands Escorts Sales State Wise

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ESCORTS SALES FY05 TO FY10

CAGR 12.96

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ITL- Sonalika
 Sonalika group was established in 1969 and started with manufacturing of
farm implements. Subsequently, ITL was incorporated on October 17,
1995 for the manufacture of Tractors. ITL mainly manufactures various
Tractors of Sonalika brand between 30 H.P to 90 H.P
 The company remains strong in the Northern market; however the presence
remain weak in South

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ITL (SONALIKA) SALES FY05 TO FY10

CAGR 8.37 FY15 Is 50,000


Tractor

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New Holland

New Holland Fiat India is a 100% subsidiary of USD 14bn.


CNH Global,
Not just India, tractors made by New Holland India have made
their mark in the rest of the world.

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NEW HOLLAND SALES FY05 TO FY10

CAGR +14.59

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John Deere

 John Deere established a green field project in 1999 under a 50:50 joint
venture with Larsen & Toubro Limited (L&T).
 The company started its operations in India by setting up a green field project
for manufacturing modern agricultural tractors at Sanaswadi near Pune.

John Deere Says About Indian Market

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JOHN DEERE SALES FY05 TO FY10
CAGR +30.29
Maximum in the industry

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Manufacturing unit location in India
+37% Growth In F10

No. Of Tractor

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DRIVERS FOR THE INDUSTRY
Some Long-Term Demand Drivers For The Industry
Agriculture In India
Agriculture Development In India
Indian Agriculture Industry Overview (SWOT Analysis)

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Agriculture In India
India ranks second worldwide in farm output.

Agriculture is one of the strongholds of the Indian economy and accounts


for 14.6 per cent of the country's gross domestic product (GDP) in 2009-10


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Need For Agriculture Mechanisation
Reduction In
Work Force

Achieving
Sustained Increasing
Growth Rate AGRCULTURE MECHANISATION Productivity
Of 4-5%

Agriculture
Based Energy
Policy
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GROWTH OF TRACTOR INDUSTRY
Future Of Tractor Industry
SWOT Analysis Of Tractor Industry
Challenges For Tractor Industry
Rate Of CAGR Of Domestic Market

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India Having Defer Penetration
From The World And Other Country

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Industry Sale Across The Region

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SWOT Analysis of tractor industry
s §Government support for the w
agricultural sector. §sale depend on monsoon.
§ high rate of Indian GDP. §Indian farmer are low income .
§Government want 4% §Farmer have little land for farming .
agriculture growth in 2015 . §
§Easy availability of Finance
§

O T
§Low penetration of tractors in §Government focusing only on
Indian agriculture. growth and agriculture having
§Export of tractors worldwide. minimum growth in comparing to
§using for other work like. other sector.
Airplane careering, commercial §Some part of India is ratio on
use like contraction ,land maximum penetration of tractor.
filling ,etc §

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Rate Of CAGR Domestic Market In India

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TOTAL TRACTOR SALES FY05 TO FY10

CAGR +12.1

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CHALLENGES FOR TRACTOR INDUSTRY

Buying Capacity
New Product Development
New Regulations
New Regulations
Alternate Energy
Export Potential

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CONCLUSION & RECOMMENDATIONS
LIMITATIONS
CONCLUSION & RECOMMENDATIONS

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Thank you
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