vanraj power pfaff

8/12/2019 Vanraj Power Pfaff

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VANRAJ TRACTORS

Vipul

Kalra

(36305)

Swapnil

Kothari(36280)

Supreet

Lakhotia( 36276)

Paras Kumar(36218)

POWER PFAFF BOYS


2/13

Segment Analysis

Can be used formaterial handling

operations

There is a need ofsmall vehicle

which can move

through rough

and congestedstreets

Threat ofSubstitutes is veryhigh & therefore

its a risky

segment

Our product will

become industryready only after

modifications so

its not profitablepresently

Segment catered by all big players

Average size of land being higher Large tractors are more costeffective

Higher HP segments give better overall fuel efficiency for

large farmers

There is a shift from 20-30 HP towards the highersegments(50-60HP)

Higher Demand

High disposable income

Industrial Large Farmers Small & Marginal Horticulture


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Small & Marginal FarmersSTRENGTHS

Single piece casting

Power Take Off

Affordable price.

Low maintenance and

operating costThree wheelerconvertibility.

WEAKNESSES

Lack of experience.

Lack of market research

Lack of concept testing

Higher price compare to

other mini tractors.

OPPORTUNITIES

Highly potential market

(world largest market fortractors)

Third largest grosscropped area

High number of marginal& small farmers

Increase in horticulture

THREATS

Chinese tractors

dumping.Indirect completion fromassembled tractorsmanufactures

Govt. restriction

Unexpected climaticcondition

Fragmented lands

In this segment about 82% ofthe people do not have

tractors, thus having morescope for future.

Land holdings are smaller, forsmall farmers it is 0.4 hac &

for marginal farmers it is 1.4

hac. Thus they need a tractor

which is not bigger in size.

They purchase big tractors bytaking creditfrom banks but

are unable to meet break

even hours

This will increase their socialstatus; provide emotional

benefits along with ensuring

timely agriculture operations

This segment is not served bybig players, as they are

interested in more margins.

Industrial Large Farmers Small & Marginal Horticulture


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Soil Pattern vs Tractor Preference

Soil Type States Tractor Preference

Alluvial

Punjab,

Haryana

Lower horse power

for tilling

Laterite & Black

Gujarat, MP,

Maharashtra

Higher horse power

for tilling

Focused States

UttarPradesh

MadhyaPradesh

Gujarat

Maharashtra

Lower HP

TractorACCEPTABILITY

Interview Excerpts

zaroori hai ki tractor zameen ko gahrajot sake

Dealerkisaan rent pe jada horse power k

tractor ka istemaal karna pasand karte, hai bajaay

kam horse power ka khareedne se

Mr. Mohit Raghuvanshi

Dealer: New Holland TractorsVidisha, Madhya Pradesh

Mr. Pranshul Lashkari,

Farmer, Vidisha(Madhya Pradesh)

Mr. Vikas Gupta

Dealer: FarmTrack TractorsAlwar, Rajasthan

Industrial Large FarmersSmall &

MarginalHorticulture


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AFFORDABILITYAVAILABILITY

Bank Loans

Conditions

minimum 4 acres of

irrigated land and 8

acres of dry land

Fragmented landholdingsmajority

of farmers own less

than 2 hectares

Defaulter rate high

Small Farmers

are Scattered

Challenging to

set up a

distribution

channel

THREAT OFCOMPETITORS

Cheaper Chinese

products available

Price Sensitivity High

Bargaining Power of

Buyer High

Rented Tractors from

Companies (eg. Eicher)

Rented tractors from

larger farmers

Excerpts:

Farmer10-15

beega zameen k liye

salaana 1-2 baartractor rent pe lene

mein kya harz hai

Observation:Difficult to reach

out to small farmer

segment

Conclusion fromSecondary Research-

From companys point

of view, its a risky

proposition

Acceptability Affordability Availability Awareness


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Market Forecast

a. Sales (given region): 45%/2812000 units*

b. Less than 20 HP : 1 % of total sales

c. Demand Forecast : 2812 Units for FY 01

d. CAGR : 5-7 % ( ~ 6 %)

Horticulture Growth Indiashorticulture Production is growing at 30 per

cent CAGR

India is 2ndin World in Terms of Horticulture

Production

Major Horticulture States being Gujarat , Maharshtra

have evolved as new Export Hubs for Horticulture

Competitor Analysis In under 20 HP segment only Big Player is mahindra

with 15 Hp tractors & other Players like Field Marshal, Trishul & captain are not targeting Horticulture

Sonalika has also launched a tractor targeted towards

Horticulture farmers but in north so we can tap

western region as growth rate is high in these states


7/13


Customer Need

Identification after

Primary Research

Mr Agyaram Kumar

Mango Plants owner

(Madhya Pradesh)

Nina Patil

Fruits Entrapreneur

Pune

Vegetable Farmers

Dattadevrao Kale

Bhausahab Jagdale

Village : Ratanjar , Karjat,Dist. Ahmednagar,

Maharashtra

Consultancy

Vanashreeagrotech

Central institute of

subtropical

horticulture, Lucknow

Customer NeedProduct Feature to

fulfill Customer Need

Big Tractors have Big wheels , So with

farming of fruits & vegetable Big Tractors

cant be used

Being 10 HP tractor with wheelbase of 1625

mm is perfect for Horticulture.

Use :- Farmers use tractors as a LMV, They

use it to commute & also to go to market to

sell their fruits & vegetables . So mileage &

handling is very important concern for them

Vanraj consumed only 1.5 litres of

diesel per hour there by resulting in huge

savings

Very Compact fields for ex For mango 8*8

Fields require very high control & control &

maneurverability

3 wheel convertability & turning radius

offers better maneurverability & Control.

Especially in Mango Clusters of Gujarat &Maharashtra

Maintenance is one of the major concern for

farmers as they look for low Cost of

maintenance

Single Body & require very less

Maintenance cost


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Identification Of Major Distribution Centres Identify Major Horticulture Hubs in these states

Major Horticulture Clusters as proposed by Government


KEY INSIGHTSAs our operating capacity is

300 units, so we will target

only major horticulture

clusters of Gujarat , MP,

Maharashtra& UP in 1styear. In

the subsequent years we will

target other Places as well.

Gujarat

Anand & Banaskantha are evolving as major Horticulture Hubs in Gujarat

Manufacturing facility in Anand will also provide strategic advantage

Source: hortnet.gov.in

Maharashtra

Ratnagiri to target the Konkan Cluster which is major mango producing belt inMaharashtra

In Marathwada cluster , target Aurangabad , as Aurangabad is proposed majorHorticulture cluster

MadhyaPradesh

Bhopal as it coincides with the mango ,aomla & Orange Cluster,

UttarPradesh

Target Lucknow as major distribution centre as Central institute of subtropicalhorticulture is there & its near to kannauj which is proposed Horticulture hub

ManufacturingUnit, Anand

Dealers ( AcrossMajor Horticulture

Clusters)Farmers

Banaskantha

Anand

Banaskantha

Anand


9/13

Information Search

Banners, Posters , Awareness

Financial point of viewShowcase in National &

International Horticulture Expo

Presence at Information Centres

Field Demonstrations

Evaluation Of Alternative

Demo Tractors in Weekly Haats

and MelasReference from Opinion Leaders

Word Of Mouth

Sponsoring Radio and Regional

Television

Purchase & Post Purchase

Good After-Sale Service

CRM through MobileMessages

Horticulture TechnologyKnowledge delivery


Price Sensitivity is very

Low in Horticulture

Farmers.

So we can have high

profitability

There are various schemes

under National

Horticulture Mission under

which financial help is

provided to horticulturefarmers

With high technology &

more Knowledge , they are

less averse to crop failure

& hence less financial risk

& risk of default


10/13

POSITIONING


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Appendix


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