Saturday, April 29, 2017
India - Farm Equipment Industry Excluding Tractors
Rs. 5000 crore Organized Farm Equipment Industry in India.
Global Farm Machinery (excluding Tractors) Industry (USD in billion)
Product segments 2018
Planting & Fertilizer 15
Parts& Attachments 33
Total 131 billion dollars
Tractors account for one-third sales in total farm machinery. So total farm machinery market is 200 billion dollars globally.
Tirth Agro's mechanised farm equipment business is growing briskly. The company now plans to ramp up exports.
It is the winner of Business Todays 'Best SME award' in the agriculture and allied sector. It is an unlisted company. In 2015/16, it has posted a turnover of Rs561.7 crore and Profit After tax (PAT) of Rs24.9 crore.
A Uber for Agriculture
EM3 provides modern, affordable farm technology services on a pay-per-use basis.
Potential for Tractor Rent Business
India has 139 million farmers and out of that 85 per cent, about 100 million, have less than 2 hectares. If these 100 million start renting tractors, 20 million tractors can be deployed on rent.
That is 10 times the number of tractors in stock in India right now. So promoting tractors on rent is a good move for expanding the services business in India and also for increasing manufacture of tractors in India. The domestic tractor industry is approximately 5,00,000 units of sales/production in 2016. Therefore an estimate that a total of 2 million tractors are in stock is reasonable.
The organized farm mechanization (excluding tractors) business is around Rs5,000 crore in India. The ratio of tractors to other farm equipment may be 85:15. The market in India for farm implements equipment is largely unorganized. Mahindra and Mahindra has Rs. 240 cr. farm machinery business excluding tractors.
2013 Report on Rice Transplantors in India