Auto major Mahindra & Mahindra on Tuesday unveiled a new range of small-sized tractors targeting new geographies as it aims to double its tractor exports in the next three years, according to a top company official.
The Mumbai-based auto major, which is the world's largest tractor maker by volume terms, exported around 18,000 tractors last fiscal.
The company said it has invested Rs 1,200 crore on developing the OJA platform which consists of four platforms that could churn out 40 different trims in the 20-70 HP power output.
The company aims to cater to the needs of farmers with small land parcels, especially in India, US and ASEAN region with the new range.
Mahindra & Mahindra President – Farm Equipment Sector Hemant Sikka said the OJA brand would help in enhancing the company's share in the market while helping it enter new markets.
"We are looking to double our export volume in three years. One of the major enablers for achieving the target would be the OJA tractors which will open new markets for us," he said.
M&M will currently produce the 4-wheel drive OJA tractors only at its Zaheerabad plant in Telangana.
Sikka said the new range will help the company scale up its market share in the small tractor segment.
"Our market share is currently around 30 per cent, with OJA we aim to take it to our national market share which stood at 41 per cent last fiscal," he said.
M&M on Tuesday showcased three OJA platforms here while introducing seven products for the Indian market.
The seven models range from 20HP – 40HP (14.91kW – 29.82kW), for a wide array of applications.
The company said the OJA 2127 and OJA 3140 are priced at Rs 5.64 lakh and Rs 7.35 lakh, respectively (ex showroom Pune).
Sikka said sales in India will begin in October while in export markets starting January next year.
M&M is also looking to add another 200 sales outlets to its 1,100 strong existing sales network over the next few years.
Hemant Sikka said the company is going to target three key areas with the OJA products -- India, ASEAN and US.
It will also target geographies in Europe and Africa with the new range.
"We will be present through this platform in pretty much every nook and corner of the globe. This would also open 12 new countries where currently we do not do any business. With this we will be able to target 25 per cent of the global light weight tractor industry," Sikka said.
In the US, the company is eyeing a sales opportunity of 1.75 lakh units, he added.
"In India, the market for orchards is growing very fast... Clearly India is a very large market and the demand for 4-wheel drive is going up rapidly," he added.
The company is looking at 1.25 lakh units in the country with the new range.
Paddy segment is also a very large market in India and which is currently being serviced by heavy tractors, he said.
In the ASEAN region there lies a sales opportunity of 70,000 units, Sikka said.
The company would be targeting countries like Thailand, Indonesia and the Philippines, he noted.
The small-sized tractors would be useful for small property land owners, golf courses, orchards, hobby farmers and landscapers among others, Sikka said.
M&M Executive Director and CEO (Auto and Farm Sectors) Rajesh Jejurikar said that a lot of technology is deployed for large farms in North America and Europe.
The farms in such locations are typically more than 1,000 acres in these regions while in India and many other markets farms are smaller in size, he said.
With the OJA platform, the company aims to democratise the technology being deployed in such big farms and make them accessible to farmers around the world, who have smaller land parcels, Jejurikar said.
"Technologies like this make a huge difference to productivity and output," he noted.
The company may also look at bringing electric trims under the OJA brand in the coming years.
M&M sold 4.07 lakh tractors across domestic and international markets last year.
The company's farm equipment sector revenue stood at around Rs 32,000 crore last fiscal.
The global business contributes one third of revenue while the rest comes from the Indian market.
The overall Indian tractor market in volume term stood at 9.45 lakh units last year.