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Escorts targets power tractors

Calcutta, Sept. 9: Escorts Agri Machinery, part of the Rs 3,200-crore Escorts group, is looking to utilise the additional capacity at its Faridabad plant to increase its share in the power tractor market.

“The segment (of tractors) above 50HP is growing rapidly. In 2011-12, it grew to 12 per cent. In 2012-13, we are expecting it to grow to 15 per cent and by 2018-19, it can reach over 20 per cent. We want to gain a significant share in this segment,” said Shenu Agarwal, head of marketing at Escorts Agri Machinery.

The current tractor market is about 6 lakh units per annum, of which 15 per cent are held by the segment above 50HP. Overseas players such as John Deere and New Holland are the prominent players in the segment. Escorts sells tractors under the brand name Farmtrac and has eight models in this segment.

“We have a capacity to manufacture 1 lakh units at Faridabad. At present, we are doing about 60,000 units per year. We can utilise the additional capacity to increase our market share,” Agarwal told The Telegraph.

He said the company was eyeing a market share of about 20 per cent in the segment. This will come on the back of efficient yet lesser-priced products in the high-end segment. However, the outlook for the tractor market is not encouraging because of poor demand after a delayed monsoon.

Credit rating agency Icra has estimated a 3 per cent growth for 2012-13 against an 11 per cent growth last year.

Agarwal said the company, which follows the agriculture year (October-September) for accounting, is hoping for some recovery in the later part of the year.

 
 
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