Mahindra and Mahindra (M&M), the largest tractor manufacturer in India, is putting its money on the rapidly expanding horticultural industry to develop its business in a year that may see little rainfall. The 'Swaraj Target' line of lightweight, small tractors, with a starting price of Rs. 5.35 lakh, was introduced by M&M on Friday. Under the 'Target' series, Swaraj Tractors will first introduce two models in the 20–30 horsepower range. In the beginning, they will be offered in Maharashtra and Karnataka. The Swaraj Target 625 will be unveiled when it is appropriate, according to the business. According to Hemant Sikka, head of M&M's agricultural equipment division, the horticulture sector is expanding more quickly than the rest of the business.
If the industry as a whole grows at, say, 6%, this section is currently increasing at roughly 18%. For farmers that cultivate horticulture, M&M does not yet provide a specialized lightweight, compact solution. However, relying on its Target line, it is aiming for a 27–30% market share in the sector. As of this point in the year, M&M holds a 42.2 percent share of the Indian tractor market. As a result, 50,000 units of lightweight compact tractors are sold annually. About 100,000 units of tractors under 30 horsepower are sold each year. Swaraj is being repositioned by the corporation as an aspirational brand for forward-thinking farmers who wish to use modern technology.
200 crore rupees were invested in the creation of the Target line, according to Sikka. "The three pillars of the Swaraj brand are power, Josh, and reliability. We are now working to make it more aspirational. According to Rajesh Jejurikar, executive director (ED) and chief executive officer (CEO) of M&M's car and agriculture business, former Team India captain MS Dhoni would support the Swaraj brand. "The investment was utilized to enhance product design and development as well as production capacity. The Mohali factory, which now has two assembly lines, would be where these goods will be produced. Within the next three quarters, we will establish a third assembly line, according to Harish Chavan, CEO of M&M's Swaraj Division.
According to Skymet, rainfall in 2023 is forecast to be "below normal," which might hurt tractor sales. Perhaps there are already some warning signs. In a note published on Friday, Kotak Institutional Equities reported that tractor volumes fell by a low-single-digit percentage month-over-month (YoY) in May. The record-breaking Ravi harvest, high reservoir levels, and the favorable southwest monsoon forecast by the Met department, according to the analysts, have kept agricultural attitude positive. According to Chavan, regular rainfall is anticipated for central and southern India, while the north has already received adequate irrigation. Therefore, a monsoon that is a little bit below average won't have a big impact on farmer morale.
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