rural case1
TRANSCRIPT
8/11/2019 Rural Case1
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U IN
just got posh
kh hlaq Singh ujla
TNN
t's an oldstory that farmers from
North India love their Mercedes
almost asmuch as their mustard.
According to a Confederation of
Indian Industry-AT Kearney
, Punjab alone accounted for
70units out of 10,870imported cars
d in India in 2012_This included
s like BMw,Mercedes and Audi.
Today, companies believe they are
t on the money bylaunching luxu-
tractors targeted at consumers pow-
d by rural wealth. Escorts Ltd is
y selling Ferrari tractors in In-
, while Italian manufacturer SAME
-Fahr (SDF)Group, owners of the
hini tractor brand, will be
ging a range of Lamborghini trac-
to India by 2014.
One of the first to get into the pre-
um tractor market was Mahindra &
, India's largest tractor man-
turer. Back in 2011, it announced
launch of Arjun International, a
ium tractor with a high-powered
ine and air-condit ioned cabin,
ced at Rs 15lakh. The boom in the
ury car industry - valued at 5.8
2011and expected to treble by
15-encouraged international play-
toenter the high-end tractor market
well. India's interest in high-end
ucts has been proved bythe luxury
segment and wehope these tractors
ll catch the imagination of the farm-
community like luxury cars, S
, CEO of Escorts Agri Machin-
said inan earlier interview toTOI.
e of the oldest manufacturers of
tors in India, Escorts has signed a
nership agreement with Italian
pany BCS SpA to distribute Fer-
i tractors in India. Rajan Nanda,
rman and managing director; Es-
s Ltd believes that Indian agricul-
ists have evolved from being subsist-
farmers to those with an entrepre-
ial bent of mind. Today'sfarmers
looking for equipment that is high
cision and output Escorts wants
partner with this forward looking
ian farmer by bringing interna-
al technology and design standards
he Indian tractor market.
Escorts isoffering a 26lIP machine
able for specialised farming, such
in vineyards and fruit orchards.
ed at Rs8lakh, it is already avail-
in Maharashtra and is being tar-
d at Kolhapur; Sangli and Nashik
. The needs of orchard and
yard growers are more advanced
the product will address them ef-
ently, says Nikhil Nanda, joint
aging director, Escorts Ltd.
Uday Mahajan says he was im-
ssed by more than just the brand
e of the 26lIP Ferrari tractor he
ht ThefarmerfromPeth Vadgaon
Haat Kanagale tehsil of Maharash-
's Kolhapur district, among the first
buy the Ferrari tractor in India, re-
ched the best options for his40-acre
dy field. I saw 20 different video
s before zeroing in on Escorts Fer-
, says Mahajan, who paid Rs 6.5
hfor the tractor and ispleased with
results. Ittook half a litre of diesel
ne acre ofland. Had the sowing
done manually, I would have to
ign six farm hands and pay them
A Ferra ri for your farm? That s not a fa r-fetched dream .
Encouraged by boom in g sales of luxury cars com panies are
drivin g prem ium tractors into the rural m arket
E R H R V E ST
lamborghini tractors are likelyto hit the markets next year
Rs600per day He's particularly happy
about the four-wheel drive which
makes turning in confined spaces
easier as well as the extensive attach-
ments the tractor can accommodate.
With its Lamborghini tractors, the
SDF group is targeting rich farmers,
high net worth individuals with farm-
ing interests and owners of golf cours-
es,cricketstadiumsandluxuryresorts.
Lamborghini tractor models in Rani-
pet, Tamil Nadu, for export to Europe
and Malaysia.
Harminder Singh, a SDF distribu-
tor from Bhogpur inJalandhar district,
believes his clients will be excited about
luxury tractors. Some of our farmers
have rich NRI relatives who will be
keen to invest, while others will just
want to be the first to buy an exclusive,
high-end foreign brand, he says.
Luxury tractors aren't just meas-
ured by horsepower (lIP) and other
technical specifications, it's the cus-
tomisation offered that sets them apart.
Internationally, luxury tractors accom-
modate small workstations, andfeature
fridges or coolboxes and drink holders,
sound systems and luxury trims, either
in wood or leather. They even have
leather steering wheels.
While some distributors believe
there isa market forluxury tractors in
India, others are more cautious. Ac-
cording tothe state farm departments,
the number of tractors in Punjab and
Haryana are about 4.43lakh and 2.70
lakh respectively. Most of these are
high horsepower and suitable for large
farms, but since land holdings in both
states have been shrinking over the
years most machines are under-uti-
lised. Tractors are used for about 400
hours a year in Punjab, far lower than
the 1,000hours per annum required to
make them economically viable. For
new entrants to make a dent in this
already saturated market, dealers po
out that local brand-building and
efficient after-sales service count
more thanjust a luxurious brand id
tity. American company New Holla
Ford, one of the world's biggest ma
facturers of tractors,launched in In
in 1998. Despite being a big fore
brand, initially westruggled togain
confidence of farmers in Punjab a
Haryana, who were unaware of
name, says a dealer.
Manpreet Singh Bajwa, a farm
from Khaira Kalan village in Ma
district of south Punjab, says the tr
tor market ishighly competitive. C
panies offer everything from free af
sales service to accessories topersua
farmers to trade in their oldmachine
he says.Jang Bahadur Singhfrom Ja
shed village, Jalandhar district, iso
of the area's biggest potato farmers.
is skeptical about the utility value
these fancy products. I 'dwantto kn
whetherrotavators, straw reapers a
balers of large sizes can be attach
and operated easily with thesemode
he says, revealing that while so
farmers are already operating 90
tractors with air-conditioned cabins
drivers, parts and accessories that
befitted tothese tractors are not eas
available in the market. Farmers
not able to get the best output or
machines are under-utilised,' he sa
With ileep thavale in Pune a
Nikhil eshmukh in Kolhapur
It s t h e c u s t o m i s a t i o n
t h at s et s l u x u r y
t r ac to r s a p a r t. T h e y
c a n a c c o m m o d a t e
s m a ll w o r k s t at io n s
f r i d g e s s o u n d
s y s te m s a n d l u x u r y
t r i m s s u c h a s l e a t h er
s t e er in g w h e el s
Their machines are priced approxi-
mately Rs 10 lakh upwards abroad.
BhanuSharma, managing director and
CEO of SDFIndiaPvtLtd, told a news-
paper in April, We are studying the
market and may introduce some range
of Lamborghini tractors in about a
year. SDFalready manufactures select