M&M Plans To Attain Quantum Growth In Farm Machinery Market

Mahindra & Mahindra, the top tractor manufacturer, is currently developing over a dozen new products for their non-tractor farm machinery segment. They also plan to restructure their dealerships to significantly increase their farm machinery business over the next five years. This ambitious growth plan has been motivated by a surge in market demand and optimistic prospects for agricultural mechanization in India.

 According to estimates, the farm machinery market (excluding tractors) was worth approximately ₹9,300 crores in FY22.

Hemant Sikka, President of the Farm Equipment Sector (FES) at Mahindra & Mahindra Ltd., stated that “As pioneers in tractorisation in India for several decades, we are now determined to expand our farm machinery business tenfold within the next five years.”

The company has already set aside a total investment of ₹3,400 crores for the FES business between 2022 and 2024. Within the FES sector, the company creates products for the agricultural value chain ranging from land preparation to post-harvest material handling. During the first 9 months of FY23, this business experienced a growth of 40%, which translates to approximately ₹450 crores.

To further expand its product range, the company plans to utilize its global Centres of Excellence in Turkey, Finland, and Japan to launch new products. These will include new-generation harvesters, boom sprayers, loaders, and other products, with 15 new products being developed in-house, as stated by Sikka.     

Furthermore, the company has established a new plant exclusively for farm machinery (FM) in Pithampur, Madhya Pradesh. The plant occupies 23 acres of land and can manufacture 1,200 combine harvesters and 3,300 rice transplanters annually. This new facility, along with its supplier park, will also manufacture products for export to markets in Asia, Africa, Europe, and the Americas.

The company is currently reevaluating its tractor network which comprises 2,220 dealers who sell Mahindra and Swaraj tractors. This is being done to promote unique farm machinery products and expand sales and service distribution for these items. Furthermore, the company plans to collaborate with independent dealers of farm machinery.

Aside from organic expansion, the company has also invested in agri start-ups and other manufacturers of farm machinery. 

Also Read:- 

Watch: Anand Mahindra's Twitter Shoutout To "Baraat" From Atop Punjab's Swaraj Tractors

Mahindra Collaborates With State Bank Of India To Finance Tractors And Farm Machinery