Escorts and Amul Industries sign JV for Steeltrac specialised tractors
As a result of the JV, Escorts will manufacture Steeltrac specialised tractors. Escorts and Amul Industries came together in 2012 for development and distribution of Steeltrac.
Steeltrac specialised tractors efficiently facilitate operations like inter-weeding for row-crops, i.e., groundnut, cotton and sunflower. Steeltrac mechanises local, short distance haulage. With the specialised tractor market growing, this strategic investment further enhances Escorts’ commitment towards making available a wider range of products to Indian farmers.
Rajan Nanda, Chairman and Managing Director, Escorts Limited says Escorts-Amul joint venture is a strategic fit, and provides an unique opportunity to leverage complementary strengths of the tractor manufacturer’s product portfolio. With exponential growth in the specialised tractors market, Escorts is glad to be a part of this segment.
In the last four years, specialised tractors market has gone from zero to about twenty thousand units. Steeltrac grings to framers the Escorts quality assurance in niche segments. Leveraging distribution reach of Escorts, the company will expand and lead these segments in due time.
Chandubhai K. Santoki, Chairman, Amul Group says for manufacturing specialised-tractors, Amul has a Rajkot production facility with capacity to produce over 10,000 tractors per year. Escorts-Amul partnership goes a long way in addressing farmers’ special needs.
Update: For March 2015, Escorts reported 4,223 units sold (PY 6,187 units) equating to 31.7 pct decline. In the domestic market, =Escorts tractor sales was down 31.6 pct at 4,163 units sold (PY 6,087 units). Exports were down 40 pct with with 60 units sold (PY 100 units). For FY 2014-15, Escorts total sales stood at 59,772 units (PY 68,963 units), down 13.3 pct. Domestic sales were reported at 57,563 units (PY 68,054 units) down 15.4 pct from previous fiscal. Exports were up at 2,209 units (909 units in FY 2013-14) up 143 pct.