Mahindra Arjun Novo tractor launch, FES to enhance global presence and sales
Mahindra & Mahindra’s Farm Equipment and Two Wheeler Division has registered lower than expected sales in July 2014 following delay in arrival of monsoons which led to late sowing and impacted farmer sentiments. However, with the revival of the monsoons and the upcoming festive season, the company now expects to see more positive sales in the coming months.
Following these lower than predicted domestic sales, Mahindra now looks towards enhancing global presence where tractor sales are concerned, targeting Rs 10,000 crore business in new agricultural vertical by 2021. The company will be focusing on markets of Brazil and Turkey following its excellent sales in the US markets where a total of 10,000 tractors were sold in the last fiscal while also looking at possible acquisition of new global tractor companies.
Mahindra & Mahindra (FES) did maintain its leadership position in the Indian tractor market through July 2014 despite lower sales. Domestic sales in July 2014 stood at 16379 units. When compared with 17771 units sold in July 2013 it equates to 8% sales decline. Total tractor sales (domestic + exports) in July 2014 stood at 17407 units. When compared to 18469 units in July 2013, the company reported 6% sales decline.
Exports for the month stood at 1028 units over 698 units sold in July 2013 to report 47% sales growth. Cumulative sales for the FY thus far are marginally lower at 1% with 93046 units sold as against 91962 units.
Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, Mahindra & Mahindra Ltd. attributed delay in arrival of monsoon to late sowing that impacted farmer sentiment resulting in lower tractor sales in July. With rainfall picking up in July across India, it’s a boost for farmers’ morale and agriculture industry.
Taking its new endeavors in the tractor segment to a new level, and besides concentrating on global markets, M&M have extensive plans to enhance their value in domestic markets. The company is soon to launch a new model codenamed M-Star as on date, while more products are in the offing. New acquisitions are in the pipeline while the company is in the process of setting up a formulations plant in Gujarat slated to come into effect by 2016-17.
M&M have also planned to set up a new tractor unit in Zaheerabad in Medak district of Telangana for which an amount of INR 300 crores has been set apart. This new plant will be excusive for the production of the Dhruv range of tractors. Company’s CEO Pravin Shah is said to have met with Telangana Chief Minister K Chandrasekhar Rao on Saturday updating him about this new plan while also seeking VAT and other concessions. M&M has also updated the State Government of Telangana about their intention to introduce electric vehicles in the city seeking Government’s support and rebate for the same.
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