Escorts eyes No.1 position in tractor market
Escorts Agri Machinery, a part of Escorts Group, aims to become the number one in the high-end tractor market segment in India in three years.
S. Sridhar, chief executive officer, Escorts Machinery, Wednesday said the company was targeting 25 percent market share in the segment of 50 HP and above tractors.
It currently has 15 percent share in this segment.
With 63,000 tractors sold last year, the company is the third-largest manufacturer and holds 12 percent market share. The demand in India is for 5.25 lakh tractors per annum, with market size estimated at Rs.25,000 crore.
"Our objective is not to improve market share but to become number one in the high-end segment in three years," said Sridhar. He was talking to reporters at the launch of new series of Powertrac DS-plus tractors here.
With its 60-year history and a strong focus on research and development, Escorts is currently developing a special tractor which promises to bring a paradigm shift in puddling (land preparation for paddy).
The product is expected to be launched in six months.
Shenu Agarwal, head, marketing, Escorts Agri Machinery, said with paddy productivity reaching stagnation in the country, the new tractor with 60 to 65 HP would show the way through its puddling capacity.
He pointed out that mid-size tractors used for puddling was sinking 12 to 15 inches deep into the ground, leading to huge wastage of fertilizers and water.
The three new Powertrac DS-plus tractors launched Wednesday have not only increased engine power by 10 percent, but also reduced fuel consumption by 10 percent.
The price ranges from Rs.4.9 lakh to Rs.5.8 lakh.
With the new series and the proposed special puddling tractor, Escorts is hoping to further penetrate markets in Andhra Pradesh and other southern states, where it currently has a low market share, compared to north and west India.
Escorts' plant at Faridabad has a capacity of one lakh tractors per annum and the current capacity utilisation is two-thirds of capacity.
The company's tractor turnover is Rs.3,000 crore.