By IANS,
Chennai : Agricultural machinery manufacturer Same Duetz-Fahr India, a subsidiary of the Italian major, will expand its Ranipet plant capacity near here on an outlay of Rs.500 million (Rs.50 crore), and will focus on the tractor segment, said a top company official Wednesday.
“We will increase the tractor capacity to 11,000 units by the end of 2010,” Shripad Shidore, company managing director told reporters here.
The announcement comes within days of the Central Statistical Organisation announcing that India’s farm output had declined 2.2 percent in the third quarter. However, it is expected to rise following a good rabi crop.
Same Duetz-Fahr India, a subsidiary of the euro 1.2-billion Italian agricultural machinery major Same Duetz-Fahr, is apprently betting big on India’s agricultural sector.
According to Vijay Raina, Same Deutz-Fahr North America chief executive, the major growth driver for high HP tractors is the “consolidation” in India’s agri-sector through contract farming.
Raina predicted the Indian tractor market to stabilise at 280,000 units from 2015 onwards (2008 industry sales stood at 306,000 units), and that sales of the low HP tractors (21HP to 40HP) will slow down.
Andrea Bedosti, the parent company’s executive vice president, the Indian facility would make 50-70HP tractors for the European and the US markets.
The company’s Ranipet facility has a capacity to make 6,300 units.
The company said it will also supply engines for manufacturers of gensets and other industrial equipment.
“Engine manufacturing capacity will be increased to 15,000. We will spend Rs.25 crore (Rs.250 million) in 2009 on expanding the engine facility and next year, a similar amount will be spent for expanding the tractor line,” Shidore said.
“We will be doubling our engines capacity by 2011,” he added.