Mahindra & Mahindra cranks out ambitious farm machinery strategy
Mumbai, October 12, 2022: Mahindra & Mahindra is working on an ambitious target that aggressively focuses on farm mechanisation with a vision to grow the non-tractor farm equipment business by 10 times in the next 5 years.
Hemant Sikka, president, farm equipment sector, M&M, said, “This year our target is to double our revenue for this segment and so far, H1 has been on track.”
The tractor market leader has been working on its Scale Up farm machinery business strategy for the past 18 months and the first part of the plan has been to grow its rotavator business, which currently comprises the largest category in the farm implement basket. India’s 2.5 lakh unit per year or ₹2,500 crore rotavator market has seen smart growth ever since the migration of farm labour during COVID crisis.
“Two years ago, our market share in this segment was 9%-10%, but we closed FY21-22 at 13% and currently we are at 20% at the end of H1FY22-23,” said Sikka. This growth has come on the back of a very focused four-point strategy. First the company launched products to fill the gaps in its range.
“We have introduced fresh products to fill these gaps and now we have products to suit every soil condition in the light, medium and heavy series,” said Sikka. Alongside, the company has spruced up its product quality in terms of soil pulverization quality, depth of pulverization, durability, lower vibration and fuel consumption. On the distribution side, M&M sorted out its supply chain to ensure production ramp up. “We introduced new suppliers and significantly added supplier capacity,” said Sikka. The company has also aligned its channel to kick off the growth phase.
Since the rotavator as a product is tractor trailed, M&M has started selling it through its network of Mahindra and Swaraj dealers. Between the two brands, the company has around 2,200 dealer points. M&M’s farm implements focus also includes other products. In November it is inaugurating its new ₹200 crore plant in Pithampur which will produce harvestors, combined harvestors and rice transplantors.