New Delhi: Swaraj Tractors, a part of Mahindra & Mahindra (M&M), has invested INR 200 crore to develop a new range of tractors in the 40-50 hp category which accounts for almost 50% sales of the domestic tractor industry.
“With this new tractor range, we are steering the brand ready for the future agriculture mechanisation needs. We have invested about INR 200 crore to develop this new range, Harish Chavan, Chief Executive Officer- Swaraj Division, M&M, told ETAuto on the sidelines of the launch event.
The company, which launched the new range of tractors on Monday, said the new products are designed to handle heavy and modern implements with ease, and deliver exceptional power and increased productivity in both the present and emerging applications. It will eventually replace its current tractors in the category and “modernise other ranges as well,” he said.
Hemant Sikka, President- Farm Equipment Sector, M&M, said, “Through this new tractor range, we are offering the latest features and technology to elevate mechanization in Indian agriculture and empower farmers to achieve higher yields and reduce effort.”
Available at company dealerships across India, the prices for the new range start at INR 6.9 lakh for 42 HP (31.3 kW) for the base variant and go up to INR 9.95 lakh for 50 HP (37.2 kW) for the top-end model.
Currently, Swaraj exports to markets like South Asia, and Africa. The new range will also be exported to its existing markets.
To target new geographies, M&M unveiled a new range of small-sized tractors based on the OJA platform last month.
New manufacturing plant
“The Indian tractor industry is experiencing rapid growth, especially in the 40-50 hp category, which has shown a remarkable 3-year CAGR of 14.3%. In comparison, the overall tractor industry has maintained a CAGR of only 10.1% during the same period,” Chavan said.
In line with this, Swaraj is in the final stages of inaugurating a new plant in Mohali, which will be operationalised in Q4 of the current fiscal year. However, the company did not share the production capacity. Currently, the tractor maker has two manufacturing facilities, one R&D centre and a foundry in Mohali, Punjab.
Swaraj Tractors manufactures a range of tractors from 15HP to 65HP. “We expect to continue the growth momentum owing to the new product range and our extensive dealer network. The only uncertainty going forward is the rain pattern. However, the sowing is better and there is a prediction that September is going to be better. So that raises some hope and we are looking at low single digit growth,” he said.
Farm mechanisation
In mechanisation of agriculture, India is far behind the developed economies. Chavan said that Indian agriculture has huge potential to enhance productivity through mechanisation. The productivity of rice or cereals can be doubled.
According to him, Indian agriculture is tractorised but not fully mechanised yet. Going forward, there will be a proliferation of digital technologies including the use of telematics to understand tractor health and geofencing. Features like multiple PTO speeds and higher transmission speeds will become more common.
The company, which provides these features in certain models, is now working on bringing them across its range.
About electrification in the tractor industry, Chavan said that it is still some time away to be popular in India. “It will have some challenges given the battery size and weight. Tractors are very different from the other vehicles where the need for torque and the surge in power is very high. Given the agriculture conditions in India and the high torque requirements, we believe there is still time for electric tractors to be ready for such an intense and major agricultural application.”
