Escorts Limited, India’s leading tractor manufacturer, entered in to a strategic alliance with Rajkot based Amul Industries for distribution and manufacturing of sub-20HP mini agricultural tractors. To begin with, the new product line shall be launched in the key markets of Gujarat, Maharashtra and Andhra Pradesh.
The product is designed to cater to the small-tractor market and is priced at about half the cost of a conventional mid-size tractor. It will efficiently facilitate operations like inter-weeding for farmers growing row-crops such as groundnut, cotton and sunflower. Presently this process is largely non-mechanized and will open a new market segment.
Speaking on the alliance, S Sridhar, CEO, Escorts Agri Machinery, said, “This alliance strengthens Escorts’ commitment to bring a wider range of products to Indian farmers. With newer applications across cropping cycles, we have continuously tried to meet needs of our customers”.
“The sub 20HP tractor is engineered to offer an excellent solution for row-crop farmers and shall significantly help enhance farm productivity. This product also offers small acreage farmers a means to move into farm mechanization and will assist in increasing farm yields and income,” he further added.
Suresh Santoki, Managing Director of Amul Group, said, “Amul is known for providing world class quality at unmatched cost. For production of mini-tractors, we have set-up a new, modern production facility at Rajkot with a capacity to produce over 10,000 tractors. The Escorts Amul alliance will jointly launch this new product which will go a long way in addressing the needs of small farmers.”
India Infoline News Service / 09:04, Jan 22, 2015
The outlook is a flat start. The market will look to scale to new peaks though not much effort is needed for the same. HUL saw a rally and short-covering may have pulled it up further. Speculation is on that its parent will raise stake through an open offer. After the cooling in oil prices, Cairn results will be in focus.