Tractors in India

India is the world's largest manufacturer of tractors with 29% of world's output in 2013; it is also the world's largest tractor market.[1][2] Above, tractors adapted for different functions in various parts of India.

Tractors in India is a major industry and significant contributor to its agriculture output gains.[3][4]

In 1947, as India gained independence from British colonial empire, the level of agriculture mechanisation was low. The socialist oriented five-year plans of the 1950s and '60s aggressively promoted rural mechanisation via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite these efforts, the first three decades after independence local production of 4-wheel tractors grew slowly. By the late 1980s tractor production was nearly 140,000 units per year, and a prevalence rate of less than 2 per 1,000 farmers.

After economic reforms of 1991, the pace of change increased and by late 1990s with production approached 270,000 per year. In early 2000s, India overtook the United States as the world's largest producer of four-wheel tractors. FAO estimated, in 1999, that of total agricultural area in India, less than 50% is under mechanised land preparation, indicating large opportunities still exist for agricultural mechanisation.[5]

In 2013, India produced 619,000 tractors accounting for 29% of world's output, as the world's largest producer and market for tractors.[6][7] India currently has 16 domestic and 4 multinational corporations manufacturing tractors.

History of tractors in India

1945 to 1960

War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid-1940s. In 1947 central and state tractor organisations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.

1961 to 1970

Local production began in 1961 with five manufacturers(Eicher, Gujarat Tractors, TAFE, Escorts, M&M) producing a total of 880 units per year. By 1965 this had increased to over 5000 units per year and the total in use had risen to over 52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.

1971 to 1980

Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. HMT, a large public sector unit, began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975-76

1981 to 1990

A further five manufacturers(Auto Tractors, Haryana Tractors, United Auto Tractors, Asian Tractors, VST Tillers) began production during this period but only Last one survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.

1991 to 1997

Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two million mark. India now emerged as one of the world leaders in wheeled tractor production.

1997 to 1999

Five new manufacturers started production in this period. In 1998 Bajaj Tempo, later renamed Force Motors, began tractor production in Pune. In April of the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors with matching equipment by investing $US 75 million in a state-of-the-art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Also during this time, Larsen and Toubro established a joint venture with John Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra. And Greeves Ltd began producing tractors under similar arrangements with Deutz-Fahr of Italy. CASE now Case IH looking to develop a joint venture in India went into discussions with various Indian companies and in 1999 settled with New Holland Pvt Ltd. India for manufacturing CASE brand tractors and harvesting equipment at New Holland's facility.

1999 to present

Facing market saturation in the traditional markets of the north west (Punjab, Haryana, Western Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers expanded into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets.

In 2013, India produced 619,000 tractors accounting for 29% of world's output. It is the world's largest producer and market for tractors.[8][9] India currently has 16 domestic and 4 multinational corporations manufacturing tractors.

Prevalence and market share

Mahindra tractor has the largest share of Indian tractor market.

Tractors are getting widespread acceptance in India. Kotaks and ICRA reports estimate that nearly 4.3 million tractors were in operation, and 1 in 20 rural households owned a tractor in 2011. They project that the market will grow at 7% to 8% per year, and only 19% of Indian rural farming households that can afford a tractor have as yet purchased a unit. Designs that allow multifunctional use, adapted to local needs and rural constraints, are experiencing higher demands. Five companies account for over 80% of the market share - Mahindra and Mahindra (largest at 40% share), TAFE, Escorts, ITL-Sonalika, and John Deere.[10][11]

Current manufacturers of tractors in India

ACE Tractors

Action Construction Equipment Limited (ACE) began manufacturing of Tractors in 2009 by launching two models in 35 / 45 HP categories. At present it is manufacturing 3 models by introducing 55 HP models in 2011. And also manufactured crains, harvester etc

In Oct.2013 Ace Tractors reached a milestone of selling 20,000+ tractors in India and Nepal.

ACE has its manufacturing plants in Faridabad (Haryana), Kashipur/Bajpur (Uttrakhand).

Angad Tractors

Main article: SAS Motors Limited

Captain Tractors Pvt. Ltd

Founded in May 1994 and located in Rajkot, India, Captain Tractors manufactures mini-tractors under the Captain brand.[12]

Crossword Agro Industries

Located in Rajkot, India, Crossword manufactures small tractors under the Nissan, Atmak and Captain brand names. .[13]

Eicher

Main article: Eicher Motors

In 1949, Eicher GoodEarth, was set up in India with technical collaboration with Gebr. Eicher a of Germany, imported and sold about 1500 tractors in India. On 24 April 1959 Eicher came out with the first locally assembled tractor from its Faridabad factory and in a period from 1965 to 1974 became the first fully manufactured (100% indigenisation) tractor in India. In December 1987 Eicher Tractors went public and in June 2005 Eicher Motors Limited sold Eicher Tractors & Engines to a subsidiary of TAFE called TAFE Motors and Tractors Limited.

Eicher also produced tractors under the Euro Power and Eicher Valtra brands under license from Valtra, an AGCO brand.[14]

Escorts

Main article: Escorts Group

Escorts began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975, reaching 71,000 by 1980. Ford (Ford - New Holland) was sold in 1992. Ford Motor Company proper quit the tractors business, but the name was allowed to continue as per agreement until 2000, when Escorts relabelled its Ford models under the Escort brand. Escort manufactures produces construction and agriculture tractors in the 27-75 HP range and has already sold over 600,000 tractors. Its tractors are marketed under three brand names, Escort, Powertrac and Farmtrac.

Farmer Tractor

Based in Rajkot, Gujarat, Farmer Tractor is production the Farmer Tractor DI 1200, using a Greaves four stroke, direct injection, 12 HP diesel engine. [15]

HMT Tractors

HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic. It manufactures its tractors in Pinjore, Panchkula in a large factory that also manufactures machine-tools, and Hyderabad It has a capacity of 20,000 tractors per annum. In the Machine-tool company is a large foundry. It produces tractors in a range from 25 HP to 75 HP. HMT has also exported tractors to the USA under the Zebra brand, which were marketed by Zetor distributors and dealers there. The company is controlled by the Ministry of Heavy industry that provides to the public its financial performance.

Indo Farm

Indo Farm Equipment Limited is an ISO certified company located in Himachal Pradesh and is into manufacturing of world-class tractors, cranes, engines, diesel gensets and has now recently launched Harvester Combine Agricom 1070 for wetland paddy harvesting. Incorporated in 1994, it is promoted by Mr. R.S. Khadwalia, who is the Chairman & Managing Director of the company and has over two decades of experience in manufacturing and marketing of various engineering products.

Indo Farm commenced commercial production of tractors in October 2000 at its plant located at Baddi in District Solan, Himachal Pradesh. Spread over an area of 34 acres, the plant started with the production of a single model. Within a decade of successful operations Indo Farm grew to a company having models in the range of 30 HP, 38 HP, 42 HP, 48 HP, 50 HP, 52 HP, 55 HP, 60 HP, 65 HP, 75 HP and 90 HP with many variants.

Way back within a year of its operations, the company had successfully indigenized the engine components, manufacturing and assembly processes, and accordingly stopped import of engines. In 2008, the company diversified into manufacturing and marketing of Pick-N-Carry cranes of 9 tonnes - 20 tonnes capacity and has recently commenced production of mobile tower cranes too. Engines being the company's core competence area, it is now making engines for generator sets that are exported overseas.

John Deere

In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under the John Deere name for worldwide sales.[16][17]

In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture. The new enterprise, is known as John Deere Equipment Private Limited. The factory currently produces tractors in of 35, 38, 40, 42,45, 50, 55, 65, 75 and 89 HP capacities for domestic markets and for export to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune factory started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008.

John Deere India Private Limited is a subsidiary of Deere & Company, USA in India. Its factory, located at Sanaswadi, Pune, manufactures 5000 Series agricultural tractors. The Indian operations of Deere & Company include a technology center located at Magarpatta City Pune and John Deere Water Vadodara. The technology center provides services in the areas of Information technology, engineering, supply management, embedded systems and technical authoring for company’s operations world wide. John Deere Water, formed by the acquisitions of Plastro Irrigation Systems, T-Systems International, and Roberts Irrigation Products.

Mahindra Gujarat Tractor Limited (MGTL)

Main article: Mahindra Gujarat

The company was originally incorporated in the state of Gujarat in 1964 with technical collaboration with Motokov-Praha of Czechoslovakia as Gujarat Tractor Corporation Ltd. It was taken over by Mahindra & Mahindra Limited on 17 December 1999 (holds 60% equity) and re-christened Mahindra Gujarat Tractor Ltd as part of Mahindra Group. The company is engaged in manufacturing of tractors in a range of 30-60 hp which are marketed under Shaktimaan brand.

Mahindra Gujarat Tractor Limited (MGTL) has its Head Office at Vadodara.

Mars Group

Originally established in 1976, the MARS Group is engaged in manufacturing/marketing of dump trucks, loaders, foggers, and agricultural tractors and attachments. Based in Lucknow, U.P., it began manufacturing two mini-tractor models under the Marshal name in 2005, Captain DI 2600 of 25 HP and Trishul MT DI 625 10 HP. [18]

New Holland Fiat India

Main article: New Holland Ag


Preet Tractors

Preet Agro began manufacturing tractors in 2002 at Nabha, Punjab, India. They currently manufacture in the 35-90 hp range.[15]

SAME Deutz-Fahr (India) Private Ltd.

Main article: SAME_Deutz-Fahr

SAME Deutz-Fahr (India) Private Limited manufacture tractors at their Ranipet facility near Chennai. They currently manufacture in the 45-70 hp range.

Sonalika

International Tractors Limited was incorporated on 17 October 1987 and began manufacturing tractors designed by Central Mechanical Engineering Research Institute (CMERI). Its engines were initially designed on the successful HMT brand of engines, and gearbox as per PTL design. ITL currently is manufacturing Sonalika tractors between 18 HP to 110 HP, and the Renault CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agricultural of France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a strong presence in India market producing its Crop Tiger range of Combine Harvesters in a plant in Faridabad (near New Delhi) since 1992. CLAAS opened a new plant in Punjab at Morinda in 2006. Sonalika is now having collaboration with Yanmar, and raised its production to 200 tractors per day.

Standard

Standard Combine began building tractors in Barnala, Punjab, India. In Standard Tractors, tractors are being manufactured in the range of 35, 45, 50, 60, and 75 HP with respective model names: Standard 335, Standard 345, Standard 450, Standard 460, and Standard 475. Engines for all these tractor models, except the last one, are manufactured within the plant as ‘Standard Engines’, in specific names – SE 335, SE 345, SE 450 and SE 460, respectively. All the above-mentioned models of Standard Engines have shown compliance to the TREM-III emission norms, as have been verified by the ARAI. However, two new variants of tractor of 35 hp (Standard 335-I) and 45 hp (Standard 345-I), equipped with famous Perkins engines (assembled within the Standard Tractors plant), and two completely new models of tractor of 30 hp (Standard 330) and 40 hp (Standard 340) are on the verge to be launched. Besides these, three 3-wheelers (two passenger-carriers and one cargo), one 4-wheeler (cargo), a crane, an electric 3-wheeled mini-car, and two 2-wheelers (scooters) are either in the process of development or on the verge of launch from the Standard Tractor Division.[19]

Swaraj Tractors

In the mid-sixties, with the Green Revolution triggering large-scale tractor usage, there was a need for the country to build sufficient indigenous capacity to meet this growing demand.

In 1965, the Central Mechanical Engineering Research Institute (CMERI), Durgapur initiated design and development of Swaraj Tractor based on indigenous know how. That is how the idea for development of what was to become Swaraj was initiated. The first prototype was ready in May 1967 and by April 1970, field experience of over 1,500 hours had been gained. At that point, it was decided to christen a name for the product – signifying Indian, easy to pronounce and signifying power and grace. The name `Swaraj', was approved by the then Prime Minister, Mrs Indira Gandhi.

In 1970, the Government of Punjab acquired the Swaraj tractor's design and established Punjab Tractors Limited (PTL). The tractors were produced and sold under the brand name of Swaraj. In 2007, Mahindra & Mahindra Ltd. acquired majority stake in PTL, and in Feb 2009, it was merged into M&M as the Swaraj Division of Mahindra & Mahindra.

TAFE

Tractors and Farm Equipment Limited (TAFE) was established in 1961 to manufacture and market Massey Ferguson tractors and related farm equipment in India. AGCO, the owner of Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India under both the TAFE and Massey Ferguson brands, and exported under both brands as well. In 2005, TAFE bought the Eicher Motors tractor and engine division.[20][21]

VST Tillers

VST Tillers was set up in 1965 in Bangalore, India. In collaboration with Mitsubishi Agricultural Machinery of Japan, they manufacture 18HP tractors under various brands, including Mitsubishi-Shakti', Shakti, Eurotrac-VST and Euro-Trac. They have been exported to Asia, the Middle East, Europe and the USA.[22]

Previous Indian Tractor Companies

Tractor companies that did not survive and were not acquired by other companies are:

Auto Tractors Ltd., Pratapgarh

Established in 1979, Auto Tractors Ltd. (ATL) had a manufacturing plant at Pratapgarh, Uttar Pradesh, and were making tractors with 28 bhp (21 kW) Leyland engines. It was established with 40% state money and the remainder an IDBI Bank loan. Production began in September 1981, but with severe supply problems and an outmoded product they only produced 2,380 tractors in their nearly ten years of existence. This was less than the projected production for the first two years alone.[23] The company and assets were sold to automaker Sipani in 1991, who focused on producing diesel tractor engines (at over five times the rate of ATL themselves) but built some tractors as well.[24]

After having been liquidated, the last of the company assets were offered for sale by the Uttar Pradesh state government in 2008.[25]

Asian Tractors Ltd

Began building tractors in 1989 from their own designs.[26]

Ford Tractors

See also: Fordson tractor
Main article: New Holland Ag

Ford (formerly Ford Tractor Division) began producing Ford Tractors in India in 1972 with a tie up with Escorts. In 1986 Ford acquired New Holland and tractor operations was transferred to Ford-New Holland and made into an independent corporation. In 1991, Fiat began an arranged purchase of Ford-New Holland that was completed in 1993, ending Ford Motor Company's long history of tractor production. The deal required that New Holland/FIAT stop using the Ford name. New Holland India Pvt Ltd began production of tractors in India in 1998.[27]

Harsha Tractors

In 1975, Harsha Tractors Ltd began manufacturing tractors in conjunction with Motoimport of Russia.[26] Tractor production never amounted to much, and has since ceased.

Haryana Tractors Ltd

As a part of Pratap Steel Rolling Mills Ltd., Haryana began building tractors from their own designs in 1983.[26]

Kirloskar Tractors

See also: Kirloskar Group

Founded in co-operation with Deutz-Fahr of Germany in 1974.[26] It has since ceased to manufacture tractors. However, the company continues to manufacture engines under license from Deutz.

Pittie Tractors

Pittie Tractors was set up by a young and dynamic engineer - Shrikant Pittie and started out as Pittie Tools. The Pittie family are prominent industrialists in Pune and the family set up the first private industry in Pune - The Raja Bahadur Motilal Poona Mills Ltd. in 1893. Pittie Tractors indigenously developed and manufactured tractors and was well set to capture a large share of the market in India. However, due to an unfortunate labour strike at one of its critical vendors, followed by a similar strike at its own plant, the company lost nearly a year of production. As a result, the company fell into financial difficulty and ultimately had to wind-up operations.

United Auto Tractors Ltd.

Began in 1986 in conjunction with Uzina Tractorul of Romania.[26]

Tractor Manufacturers Association

The Tractor Manufacturers' Association of India (TMA) is housed under The Confederation of Indian Industry (CII), New Delhi. Though not all manufacturers are members TMA is recognised as the main trade group representing the agricultural tractor industry in India. TR Kesavan, COO - Product Strategy and Corporate Relations, TAFE - Tractors and Farm Equipment Limited is the current President of TMA.

See also

price list of farm tractors

References

  1. ↑ Global Tractor Market Analysis Available to AEM Members from Agrievolution Alliance Association of Equipment Manufacturers, Wisconsin, USA (2014)
  2. ↑ India proves fertile ground for tractor makers The Financial Times (April 7 2014) (subscription required)
  3. ↑ Global Tractor Market Analysis Available to AEM Members from Agrievolution Alliance Association of Equipment Manufacturers, Wisconsin, USA (2014)
  4. ↑ India proves fertile ground for tractor makers The Financial Times (April 7 2014) (subscription required)
  5. ↑ The following annotated time line borrows exclusively from a presentation by Gajendra Singh's presentation at the Tropical Agricultural Association et al. November 1999 conference "The Tractor Factor - Ploughing a road out of poverty" and whose full presentation be found at http://www.taa.org.uk/southeast/Singh.htm
  6. ↑ Global Tractor Market Analysis Available to AEM Members from Agrievolution Alliance Association of Equipment Manufacturers, Wisconsin, USA (2014)
  7. ↑ India proves fertile ground for tractor makers The Financial Times (April 7 2014) (subscription required)
  8. ↑ Global Tractor Market Analysis Available to AEM Members from Agrievolution Alliance Association of Equipment Manufacturers, Wisconsin, USA (2014)
  9. ↑ India proves fertile ground for tractor makers The Financial Times (April 7 2014) (subscription required)
  10. ↑ INDIAN TRACTOR INDUSTRY ICRA, India (2012)
  11. ↑ Tractor industry flourishes amidst slowdown
  12. ↑ http://www.captainminitractor.com/
  13. ↑ http://www.crosswordagro.com/
  14. ↑ The Tribune, Chandigarh, India - Business
  15. 1 2 http://www.preetagro.com/
  16. ↑ The Hindu : L&T-John Deere's Pune facility
  17. ↑ http://www.deere.com/en_US/compinfo/media/pdf/publications/jd_journal/archives/fall_2001.pdf
  18. ↑ http://www.marsgroup.co.in/tractor.html
  19. ↑ :::::: - Standard - ::::::
  20. ↑ Tafe : Home
  21. ↑ http://www.ndtv.com/money/showbusinessstory.asp?slug=TAFE+adds+Eicher+to+its+booty&id=25302
  22. ↑ :: Vst Tillers Tractors Ltd
  23. ↑ Bajaj, J.L. (1994-08-27). "Divesting State Ownership: A Tale of Two Companies". Economic and Political Weekly (Mumbai, India: Sameeksha Trust) 29 (35): M125–M126.
  24. ↑ Bajaj, p. M127
  25. ↑ Srivastava, B. K. L. (2008-03-04), "Tender Sale Notice of Auto Tractors, Ltd" (PDF), Office of the Official Liquidator, High court of Judicature (Allahabad, U.P., India: Govt. of India, Ministry of Corporate Affairs)
  26. 1 2 3 4 5 Report
  27. ↑ domain-b.com : New Holland expanding aggressively

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