Tractor Industry Present And Future 362j5p

Strategic Perspective Of Present And Future Opportunities And Challenges Of Indian Tractor Industry Presented By -: Anmol Verma Roll. No.-: PG9009

AGENDA INTRODUCTION TO THE PROJECT INDUSTRY PROFILE DRIVERS FOR THE INDUSTRY GROWTH OF TRACTOR INDUSTRY FUTURE OF TRACTOR INDUSTRY CONCLUSION & RECOMMENDATIONS BIBLIOGRAPHY

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Mothersonsumisystem is auto component company

business enterprises required vital information to keep alive it’s day to day business activities.

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Automobile Industry

Light VehicleCommercial Vehicle

Tractor

Two Wheelers

Three Wheelers

Farm/Earthmoving & ConstructionMotorcycles/Scooters/Mopeds Equipments PCs/MUVs/SUVs LCVs/M&HCVS/BUSES enger Carriers / Goods C

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Tractor

Agriculture

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Construction equipment

23.11

13.80

6.72

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6.60

World leading tractor manufacture

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Deere & Company • Deere & Company, Usually Known By Its Brand Name John Deere Is An American Corporation Based In Moline, Illinois, • And The Leading Manufacturer Of Agricultural Machinery In The World. • Listed As 107 Place In The Fortune 500 Ranking In 2010. • A US$23.11 billion company. • • • •  [email protected]

CNH  A fiat group company.  CNH manufactures its products in 38 facilities throughout

the world and distributes its products in approximately 170 countries through approximately 11,600 full line dealers and distributors. 

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Mahindra  Farm Equipment Sector are spread across six continents and in around 25

countries.  International OperationsØ Mahindra USA (MUSA),Mahindra Australia,Africa Ø (Srilanka, Bangladesh, Nepal), Middle East (Iran, Syria etc) and East Europe (Serbia and Macedonia; FES has entered the Turkey market .  Mahindra have 5th largest tractor company of china Mahindra Yueda Yancheng Tractor Company (MYYTCL)  

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AGCO • AGCO Corporation Is An Agricultural Equipment Manufacturer Based In Duluth, Georgia, USA. As A Leading Global Manufacturer Of Agricultural Equipment. • More Than 2,700 Independent Dealers And Distributors In More Than 140 Countries Worldwide. • Listed As 337 Place In The Fortune 500 Ranking In 2010. 

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Indian Tractor Industry

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Current manufacture of tractor in India….. 1.Mahindra & Mahindra. 2.TAFE. 3.L&T - John Deere. 4.Eicher. 5.Mahindra Gujarat Tractor Limited. 6.New Holland. 7.Escorts (Escort, Powertrac and Farmtrac). 8.Sonalika (International Tractors Ltd.) 9.Punjab Tractors Ltd (Swaraj Tractors). 10.Same Deutz-Fahr Ltd. 11.HMT Tractors. 12.Balwan Tractors, force motors ltd. 13.VST Tillers. 14.Captain Tractors Pvt. Ltd. 15.Crossword Agro Industries. 16.Indo Farm. 17.MARS Farm Equipments Ltd. 18.Preet Tractors. 19.Standard.

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Market Share Of Company In India

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Leading Company In Tractor Market Of India 2010 Mahindra Tafe Escort Sonalika Fiat New Holland Johan Deere

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Mahindra Mahindra Tractors Is Number One In Sales In India - The Largest

Tractor Market In The World. And It Has Been The Market Leader Since 1983. Its Sales Are Predominantly In The States Of Gujarat, Haryana, Punjab, Maharashtra And The Southern States. Its Sales In Gujarat Are Under The Label Mahindra Gujarat And Its Sales In Punjab Are Under The Label Swaraj. In 1999, Mahindra Purchased 60% Of Gujarat Tractor From The Government Of Gujarat. •



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+46% growth in 2010

.Of Tractor

*Includes PTL/Swaraj Division Sales From Aug 08 Onwards. [email protected]

Total Sale Of Tractor On Domestic Market

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TAFE  TAFE is a US $750 million tractor major incorporated in 1960 at Chennai in

India, in collaboration with Massey Ferguson (now owned by AGCO Corporation, USA) TAFE acquired the Eicher tractors business,  TAFE exports to 80 countries with major markets being Bangladesh, USA, Afghanistan, Yugoslavia and Sri Lanka. 

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TAFE+EICHER TRACTOR- SALES FY05 TO FY10 CAGR +11.79

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Escorts Commenced manufacturing operations in 1964 and today has 4

manufacturing plants in India. Capacity: 98000 Tractors per annum. Have 3 recognized and well-accepted tractor brands Since inception, have manufactured over 1.1 million tractors. Current market share in the tractor segment is 13%.

Escorts 3 Brands

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Escorts Sales State Wise

ESCORTS SALES FY05 TO FY10 CAGR 12.96

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ITL- Sonalika  Sonalika group was established in 1969 and started with manufacturing of

farm implements. Subsequently, ITL was incorporated on October 17, 1995 for the manufacture of Tractors. ITL mainly manufactures various Tractors of Sonalika brand between 30 H.P to 90 H.P  The company remains strong in the Northern market; however the presence remain weak in South 

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ITL (SONALIKA) SALES FY05 TO FY10 CAGR 8.37

FY15 Is 50,000 Tractor

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New Holland New Holland Fiat India is a 100% subsidiary of USD 14bn.

CNH Global, Not just India, tractors made by New Holland India have made their mark in the rest of the world.

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NEW HOLLAND SALES FY05 TO FY10 CAGR +14.59

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John Deere  John Deere established a green field project in 1999 under a 50:50 t

venture with Larsen & Toubro Limited (L&T).  The company started its operations in India by setting up a green field project for manufacturing modern agricultural tractors at Sanaswadi near Pune.

John Deere Says About Indian Market

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JOHN DEERE SALES FY05 TO FY10 CAGR +30.29 Maximum in the industry

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Manufacturing unit location in India

+37% Growth In F10 No. Of Tractor

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DRIVERS FOR THE INDUSTRY Some Long-Term Demand Drivers For The Industry Agriculture In India Agriculture Development In India Indian Agriculture Industry Overview (SWOT Analysis)

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Agriculture In India India ranks second worldwide in farm output. 

Agriculture is one of the strongholds of the Indian economy and s

for 14.6 per cent of the country's gross domestic product (GDP) in 2009-10   [email protected]

Need For Agriculture Mechanisation Reduction In Work Force

Achieving Sustained Growth Rate AGRCULTURE Of 4-5%

Increasing MECHANISATION Productivity

Agriculture Based Energy Policy [email protected]

GROWTH OF TRACTOR INDUSTRY Future Of Tractor Industry SWOT Analysis Of Tractor Industry Challenges For Tractor Industry Rate Of CAGR Of Domestic Market •

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India Having Defer Penetration From The World And Other Country

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Industry Sale Across The Region

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SWOT Analysis of tractor industry s §Government for the w agricultural sector. § high rate of Indian GDP. §Government want 4% agriculture growth in 2015 . §Easy availability of Finance §

O §Low penetration of tractors in Indian agriculture. §Export of tractors worldwide. §using for other work like. Airplane careering, commercial use like contraction ,land filling ,etc [email protected]

§sale depend on monsoon. §Indian farmer are low income . §Farmer have little land for farming . §

T §Government focusing only on growth and agriculture having minimum growth in comparing to other sector. §Some part of India is ratio on maximum penetration of tractor. §

Rate Of CAGR Domestic Market In India

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TOTAL TRACTOR SALES FY05 TO FY10 CAGR +12.1

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CHALLENGES FOR TRACTOR INDUSTRY Buying Capacity New Product Development New Regulations New Regulations Alternate Energy Export Potential 

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CONCLUSION & RECOMMENDATIONS LIMITATIONS CONCLUSION & RECOMMENDATIONS

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Thank you [email protected]