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A GUIDE TO ESTIMATION OF GROWTH
OF INDIAN TRACTOR INDUSTRY
JUNE - JULY 2016
ARPIT JHAMB
CONTENTS
TRACTOR INDUSTRY: INTRODUCTION ............................................................................................. 2
AGRICULTURAL DEVELOPMENT: ............................................................................................... 2
MARKET ANALYSIS ............................................................................................................................. 4
TRACTOR PENETRATION ................................................................................................................ 4
WORLD MARKET BY REGION ......................................................................................................... 5
EXPORTS .......................................................................................................................................... 6
SALES ............................................................................................................................................... 7
MARKET SHARE ANALYSIS ............................................................................................................. 7
SEGMENTATION OF MARKET: ......................................................................................................... 9
MARKET SHARE 41-50 HP ......................................................................................................... 10
MARKET SHARE 51 HP AND ABOVE ......................................................................................... 11
MARKET VALUE BY STATES ......................................................................................................... 12
COST ANALYSIS ................................................................................................................................ 13
IRRIGATION TRENDS IN INDIA: ..................................................................................................... 13
OWNERSHIP COSTS ...................................................................................................................... 14
TRENDS IN USAGE OF TRACTORS AND BULLOCK CARTS: .......................................................... 16
CHALLENGES AND DRIVERS ........................................................................................................... 17
SWOT ANALYSIS ............................................................................................................................ 18
KEY FACTORS IMPACTING SALES .................................................................................................. 20
MONSOON FLUCTUATIONS .......................................................................................................... 20
MINIMUM SUPPORT PRICES ......................................................................................................... 21
MONTH WISE TREND IN SALES .................................................................................................... 22
OTHER FACTORS: ......................................................................................................................... 24
EXPORTS: ................................................................................................................................... 24
INTEREST RATES: ...................................................................................................................... 24
TRACTOR FINANCING ................................................................................................................ 25
NON-AGRICULTURAL SECTOR ................................................................................................. 25
MAJOR PLAYERS ............................................................................................................................... 26
MAHINDRA TRACTORS ................................................................................................................. 26
TAFE LIMITED ................................................................................................................................. 27
ESCORT TRACTORS ...................................................................................................................... 29
1
GOVERNMENT INITIATIVES .............................................................................................................. 31
PRIME MINISTER KRISHI SINCHAYEE YOJANA (PMKSY) ........................................................... 31
NATIONAL FOOD SECURITY MISSION (NFSM) ............................................................................ 31
MARCO MANAGEMENT OF AGRICULTURE (MMA) ...................................................................... 32
RASHTRIYA KRISHI VIKAS YOJANA (RKVY) ................................................................................ 32
WATER AND IRRIGATION MANAGEMENT .................................................................................... 32
INITIATIES AND EFFORTS BY TRACTOR COMPANIES ................................................................... 33
MAHINDRA RENTAL FARM EQUIPMENT ...................................................................................... 33
INTERNATIONAL TRACTORS AGGRESSIVE PRICING ................................................................ 34
HIGHER HP TRACTORS ................................................................................................................. 34
NEW TECHNOLOGIES AND IMPROVEMENTS IN TRACTORS ........................................................ 35
4 WD TRACTORS:........................................................................................................................... 35
ANTI-LIFT TRACTORS: ................................................................................................................... 35
OTHER IMPROVEMENTS: .............................................................................................................. 35
IMPROVEMENT IN FUEL EFFICIENCY ............................................................................... 35
BETTER TRACTOR ENGINES AND TRANSMISSIONS ....................................................... 35
STEERING SYSTEM ............................................................................................................. 35
ERGONOMICS AND OPERATIONAL SAFETY .................................................................... 35
CONCLUSION ..................................................................................................................................... 36
REFERENCES .................................................................................................................................... 37
2
TRACTOR INDUSTRY: INTRODUCTION
India is mainly an agricultural country. Agriculture accounts for approximately 20 percent of India’s GDP
over the past 10 years. Agriculture in India is the means of livelihood of almost half of workforce in the
country and employs nearly 58 percent of the population. Almost 42 percent of India’s geographical area
is used for agricultural activity and therefore it is considered to be the vital sector of Indian Economy.
Indian Agricultural sector accounts for a current average growth rate of 2.2 percent. It is the largest
producer of pulses and second largest producer of rice and wheat in the world.
AGRICULTURAL DEVELOPMENT:
India exported $39 billion worth of agricultural products in 2013, making it the seventh largest agricultural
exporter worldwide, and the sixth largest net exporter. This represents explosive growth, as in 2003 net
export were about $5 billion. India is the fastest growing exporter of agricultural products over a 10-year
period, its $39 billion of net exports is more than double the combined exports of the European Union.
Source: (Wikipedia)
•Before 1960s, when there was boost in productivity growth of coarse grains and pulses per unit of land.
Pre-Green Revolution
•Mid 1960s to Mid 1980s, period of expansion of area and rapid growth in productivity of wheat and rice, expansion of research and national infrastructure.
Green Revolution
•Mid 1980s to 2000, was a period of continued growth in prodcutivity through the use of chemical fertilizers and labor.
Post-Green Revolution
•2000 to Present: Shift from low-value to high-value crops for domestic consumption, processing and export
•Aim to achieve a sustained growth rate of 4-5%.
•Rapid Improvements in farm Mechanization
The Current Stage
3
The Tractor industry has always been a barometer for the state of rural
economy in India. Indian tractor industry is relatively young but now has
become the largest market worldwide, accounting one third of the global
production. The other major tractor markets in the world are China and
US.
Volume growth in the tractor industry in the past four decades show a
compound annual growth rate (CAGR) of almost 10% despite the
dependency of sales on various seasonal and miscellaneous reasons
and subsequently impacting industry volumes.
In the long run, Indian Tractor Industry has seen robust 8% CAGR in
volumes over the last 43 years with two string bouts occurring during
1973-2000 and 2003-2014. There was a sudden downfall in growth of
the industry during 2000-2003. However, the growth was far from linear
because of various seasonal and unavoidable circumstances. Source:
(Philip Capital: Tractor, 2016)
In the long run, the industry growth is expected to continue from a
moderate CAGR rate of five percent to seven percent, largely due to
continued thrust by the government to increase agricultural GDP. We
expect the industry to stabilize around 450,000 to 500,000 tractors per
year by 2020.
Growth of Tractor Industry
MSP and Lending
Rate
Seasonal Factors
Historical CAGR
India Agriculture
Sector accounts for
approx. 20% of
India’s GDP and
accounts for CAGR
of 2.2%
Volume growth of
Tractor Industry in
the past decade
shows a CAGR of
almost 10%
4
MARKET ANALYSIS
Tractor Penetration
We believe tractor demand will grow and will be boosted in the coming
years by significant impact by following factors:
Shortage of Farm labor
Rising Cost of bullocks
Raising Crop yields
Use of tractors for non-agricultural and haulage purposes
According to a census, Indian Tractor population is estimated to be
around 4.3 million with only 5% agricultural households owning tractors.
Tractor Penetration in Indian Farm Households:
The overall penetration for Indian Tractor industry is good in case
of large farmers, about 46.2%. This is due to more arable land
and easiness in investing for a tractor.
Penetration level for Medium level farmers is around 21%. This is
the major portion in total farm households which have tractors.
Small and Marginal Farmers have very low penetration (around
1%), majorly because of low farm income and less arable land.
Source: (Dolat Capital-Tractor Industry, 2012)
Large
Farmers
1%
Medium
Farmers
17%
Small Farmers
19%
Marginal Farmers
63%
> 20 Acres
< 2.5 Acres
5- 20 Acres
2.5 - 5 Acres
From a total of 82
million farm
households, less than
0.82 million are large
farmers.
Southern and Western
states are under
penetrated; Northern
states over
penetrated.
5
Transformation from Manual to Machinery in Agriculture
How India is shifting from Draught animals to Tractors:
Source: (Philip Capital: Tractor, 2016)
Even after removing marginal farm holdings, it can be judged that huge
scope of growth still exists, but there is a huge demographic inequality
existing in terms of penetration.
While Southern and Western states are under penetrated and will
experience growth due to new demand in tractors and hence increasing
penetration, Northern states are over penetrated. Replacement demand
will be a key factor for growth for this area.
WORLD MARKET BY REGION
Japan has the highest penetration of Tractors, being 461 tractors per
1000 Hectares. This is followed by Italy and U.K., but India has a very
low penetration of tractors (15 Tractors per 1000 Hectares)
As the penetration is low, India has one of the highest demand in number
of tractor units and hence the sales of Indian Tractor Industry is
increasing rapidly. China and U.S. has more tractors than India but their
demand is majorly due to replacement; whereas in India, the demand is
fresh due to low penetration. Hence Indian Tractor Industry is expected
to have a positive growth.
0%
1%
2%
3%
4%
5%
6%
7%
8%
84%
86%
88%
90%
92%
94%
96%
98%
100%
1972 1976 1982 1986 1992 1996 2001 2006 2015
Tractor (RHS) Draught Animal
USA took 50 years for
mechanization after
Agri revolution, India
long way yet.
Uttar Pradesh is the
largest contributor to
industry volumes.
6
Source: (Philip Capital: Tractor, 2016)
Indian Market share: sales and export
The Indian tractor industry has been growing at 8% CAGR with a strong bout of more than 10% CAGR
during 2003-2014. Although, the growth is evident, the growth pattern is not linear and depends on
various factors (in the given year).
Exports
The Indian tractor industry has developed over the years to become one of the largest tractor markets in
the world, with around half a million units in 1980’s to around six million units now. Indian Tractors are
the cheapest and hence their export levels have been increasing tremendously.
0
100
200
300
400
500
600
700
India China United States EU
Thousands
Largest Market for Tractors
461
211
88 80
16 15
0
100
200
300
400
500
Japan Italy U.K. Germany Pakistan India
Penetration of Tractors
7
Annual export has increased from 5000 units in FY01 to 62,000 units in FY11, that is, growth of around
12 times. In recent trends also, YoY growth FY10-FY11 was around 63%.
Although there was a drop in exports in FY13 and FY14, it was due to global decrease in tractor units.
Also the exports have doubled in a span of eight years from FY07 to FY16.
Sales
The sale of the tractors is usually higher in 2H than 1H of a particular year. This has been the case for all
years since FY01, except for FY 09 and FY 16.
Over the past decade, domestic tractor volumes have clocked 8-9% CAGR, with high fluctuations, mainly
because of irregular MSPs (Minimum Support Price), labor costs and Monsoon.
Market Share Analysis
Tractors are getting widespread acceptance in India. Designs that allow multifunctional use, adapted to
local needs and rural constraints, are experiencing higher demands.
Segmentation of Indian Tractor Industry:
The Indian tractor market is broadly classified into five segments: less-than-20 HP (horsepower), 21-30
HP, 31-40 HP, 41-50 HP and 50+ HP. India has been predominantly a 31-40 HP market, ~42% of the
industry.
58
1215
20
30
3640 42
38
62
70
5862
75 77
0
10
20
30
40
50
60
70
80
90
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Thousands
Annual Tractor Export
8
Market Players:
Currently there are around 6 major players (including MNCs and
collaborations). Around 95% of the market share is owned by these big
players.
International Tractors Limited
Escort Tractors
TAFE Limited
John Deere India Pvt. Ltd.
Mahindra Tractors
New Holland
Others (HMT, Force, Same Deutz Fahr)
Indian Tractor Market produces different units of tractors every year
depending on the demand. This demand is also dependent on various
other independent factors.
Source of Data: (Philip Capital: Tractor, 2016)
Market share in Indian Tractor industry predominantly depends on
various factors. Some of those being as follows:
Competitive cost of Tractors
Tractor Exchange Deals by major players
Condition of Monsoon
Minimum Support Prices (MSP)
Month-wise Trends
Exports
Lending Rate
Ease in Financing of a Tractor
Around 95% of the
Indian Tractor market
is owned by 6 major
players.
9
So, because of these factors, the Market Share fluctuates every year. The Market Share for FY11 to
FY16 is:
Data: (Philip Capital: Tractor, 2016)
Key points to note in Market Share from FY11 to FY16:
International Tractors Limited have seen an increase of almost 42% in their market share from
FY11 to FY 16. This has been due to their aggressive strategies and pricing its products 10-15%
below competition rates. (Philip Capital: Tractor, 2016)
Innovative marketing strategies being used by International Tractors limited have boosted their
growth, especially tractor exchange. Their initiatives to provide credit to farmers helped the
company see a sharp jump in its market share.
TAFE has been able to increase its market share by expanding its coverage to new areas. Also
their dominance over high HP tractors have helped them increase their market share in the last 5
years.
SEGMENTATION OF MARKET:
The Indian tractor market is broadly classified into five segments:
less th
an
2
0 H
P
21
to
30
HP
31
to
40
HP
41 to 5
0 H
P
50
+ H
P
7% 8% 9% 11% 12% 13%16% 16% 15% 14% 12% 12%
24% 22% 22% 24% 25% 25%
6% 7% 6% 5% 5% 5%
41% 41% 42% 39% 38% 39%
5% 5% 4% 5% 5% 4%
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
MARKET SHARE FY11-FY16Others (HMT, Force, SameDeutz Fahr)
M/s. NEW HOLLAND
M/s. Mahindra & MahindraLimited, (Swaraj Division)
M/s. JOHN DEERE INDIAPRIVATE LIMITED,
M/s. TAFE LIMITED
M/s. ESCORTS R&D CENTRE,
M/s. INTERNATIONALTRACTORS LIMITED (Sonalika)
10
The trend in the last 5 years show preference towards higher horsepower tractors. Farmers are now opting for 41-50 HP tractors rather than <30 HP and 31-40 HP tractors. This has been due to increase in usage of tractors for haulage and also
due to multiuse of tractors in agriculture. This segment has risen its
market share to 49% in FY16 from 29% in FY11.
(Philip Capital: Tractor, 2016)
MARKET SHARE 41-50 HP Mahindra Tractors has increased its market share by 50% from
being 30% in FY12 to 45% in FY13 and have been constant till
date.
TAFE has also been increasing its share in this segment
tremendously, from being 9% in FY12 to 23% in FY14, which is
a 150% hike.
However, Escort Tractors lost a significant share in market and
now contribute less than 10% in this segment.
Source: (Philip Capital: Tractor, 2016)
Combined share of
tractors above 40 HP
has more than
doubled over the last
ten years
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY11 FY12 FY13 FY14 FY15 FY16
Upto 30 HP 31-40 HP 41-50 HP 51 HP above
11
MARKET SHARE 51 HP AND ABOVE Mahindra Tractors lost ground in this segment from being 61%
in FY12 to 24% in FY14. This is a major loss for Mahindra
tractors as their share decreased more than half in 2 years’ time.
New Holland is a new player in this segment and started its
production in FY13 with an initial market share of 10% and has
been increasing gradually since then.
International Tractors Limited has been increasing its market
share from 14% in FY12 to 36% in FY14.
Source: (Philip Capital: Tractor, 2016)
Future Trends:
Higher HP and more sophisticated multi-purpose tractors are coming
into the market.
Due to movement of people from rural to urban areas, the labor cost is
increasing and depending on machines will rise in the near future.
30%
45% 43%
9%14%
23%
0%
10%
20%
30%
40%
50%
FY12 FY13 FY14
Mahindra Tractors TAFE
61%
43%
24%
14%
27%
36%
0%
10%
20%
30%
40%
50%
60%
70%
FY12 FY13 FY14
Mahindra Tractors International Tractors
John Deere and
International Tractors
Ltd combined have a
market share of more
than 50% in 51HP+
segment.
Future Trends
towards higher HP
tractors.
12
Market Value by States
Penetration of tractors is very high in North India and hence the demand of the tractors will be majorly
because of replacement factors. Hence the percentage share of North India market will either decrease
or remain constant, depending on other factors such a rainfall and MSP for the region.
However, South and West India are likely to drive the tractor demand for the next 2-3 years, because of
the following factors:
Low penetration of tractors in these areas
Better irrigation system and weather
Market Players in different regions:
Mahindra Tractors has a better hold over South and West India, having a 40-42% market share,
which is higher than its overall market share of 38%. I believe that Mahindra Tractors will benefit
from this as there is a better scope of growth in those regions.
International Tractors Limited, on the other hand has a better hold over North India of about
19% market share, which is much more than the overall market share of about 12%.
Source of data: (Philip Capital: Tractor, 2016)
UP16%
Rajasthan12%
MP12%
Maharashtra9%
Gujrat8%
AP7%
Bihar7%
Karnataka6%
Haryana6%
Punjab5%
Others12%
Industrial Volumes
13
COST ANALYSIS
Farm operations are usually done manually (human effort or animals) or
with the help of mechanized equipment such as tractors. Conventionally,
usage of fodder animal was prevalent because of less capital was
needed and tractor cost was high. After 1990’s when India experienced
LPG (Liberalization, Privatization, Globalization), tractor growth rose
exponentially, doubling the tractor usage between 1987 and 1992 and
again doubling the usage between 1992 and 1997.
In the 21st century, as the cost of tractors have gone down, cost
estimation between viable methods for farm operations was necessary.
The total Net Sown Area has also increased over the years from 1987
to 2015, which has led to increase in overall farm income. Irrigation is
also a major factor in the cost analysis, as irrigation at subsidiary rates
increases farm income and hence more capital can be invested in a
tractor.
Irrigation Trends in India:
Source of data: (Agricultural Ministry, India, 2013)
Increase in irrigation area is predominantly due to more focus of
government on irrigation and new initiatives being implemented on
National as well as State level.
26.9%29.4%
32.5%
37.5%40.5%
46.8%50.1%
0%
10%
20%
30%
40%
50%
60%
1982 1987 1992 1997 2002 2007 2012
Irrigated Area as % of Sown Area
Irrigated Area as % of Sown Area
UP, Rajasthan, MP
and Maharashtra
combined contribute
to around 50% in
Tractor Industrial
Volumes.
Irrigated Area as
percentage of Sown
Area has almost
doubled from 1982
to 2012.
14
Ownership Costs
Tractors are replacing bullock carts and labor as the cost of ownership of a 15 HP tractor is lower
than the cost of owning two bullocks to pull a cart a follows:
Ownership Cost of a bullock cart with two bulls
Daily feed Required 25 Kgs
Cost of Feed Rs. 2.5/Kg
Annual Feed Cost for 2 Bulls Rs. 45,625
Annual Cost of Owning a bullock Cart Rs. 50,000
Capital to buy two bulls Rs. 42,000
Medical Cost Rs. 10,000
Life of a bull 10 Years
Total Cost Rs. 5,60,000
Ownership Cost of a Tractor
Capital Cost of a 15 HP Tractor Rs. 2,20,000
Loan Taken (Approx.) Rs. 1,60,000
Interest 16%
Tenure 5 Years
Annual Maintenance Cost Rs. 30,000
Annual EMI cost Rs. 48,000
Annual Cost of Owning a Tractor Rs. 75,000
Life of a Tractor 10 Years
Resale Value after 10 Years Rs. 30,000
Total Cost Rs. 5,20,000
Assumptions:
Area of Farm is 6-10 Acres Weight of Bullock is 1000 Kg Loan Taken on 75% Cost of tractor Inflation Ignored Cost of owning a tractor included cost of fuel and coolants
15
Although, we see that annual cost of owning a tractor is less than annual
cost of owning a bullock cart with two bulls, still farmers can’t buy tractors
because of high capital intensive required and the cash flow for medium
and small farmers is low.
Also a tractor provides more tangible and intangible benefits to the
farmer than a bullock cart. As the tractor is mechanized, it works faster
than a bullock cart and hence increasing the farm income of a farmer
and enabling him to crop land twice a year.
Less than one-third of total farmers cultivate two crops a year on their
farms because of dependency on labor and animals for farm operations.
Efficiency is much lower as compared to other countries.
Tractors are also being extensively used for transport and construction
work. These are used in mining, construction and transportation fields.
Excess usage of tractors for transportation has shrunk the replacement
cycle of tractors to 7-9 years from 10-12 years earlier, hence boosting
the demand.
Also, as the percentage of irrigated area to sown area is increasing
rapidly, higher crop yields are taking place which are encouraging
farmers to shift from conventional practices.
Annual Cost of
owning a 15HP
tractor is less than
owning a bullock
cart with two bulls.
Renting a 40HP
tractor is cheaper
than buying a 15HP
tractor even for
small farm holdings.
16
TRENDS IN USAGE OF TRACTORS AND BULLOCK
CARTS:
Source of Data: (Kodak Institutional Equities, 2013)
Source of Data: (Kodak Institutional Equities, 2013)
Rise in usage of bullock carts during 1997 to 2002 was due the fact that liquidity position was low in
Indian Market and traditional and cheap methods were being adopted by small farmers rather than
investing money in tractors.
0
5
10
15
20
25
30
35
0
20
40
60
80
100
120
140
160
180
200
1987 1992 1997 2002 2007
Tractor Usage (per 100 operational users)
< 1 ha 1-2 ha 2-4 ha 4-10 ha >10 ha All Size Classes
0
5
10
15
20
25
30
35
0
50
100
150
200
250
1987 1992 1997 2002 2007
Bullock Carts Usage (per 100 operational users)
< 1 ha 1-2 ha 2-4 ha 4-10 ha >10 ha All Size Classes
17
CHALLENGES AND DRIVERS
Indian Tractor industry’s growth depends on a number of factors, some of them being drivers for
growths and others act as anchors.
Considering all factors, we see that drivers are playing are a crucial role in growth of Tractor Industry:
Many factors influence tractor demand. Primary demand emanates from agricultural growth and the
secondary demand from dual use of tractors, primarily haulage .The primary usage (agriculture) is with
respect dependent upon the following drivers:
Expansion and Extension of Agriculture land:
1. From the past 20 years, it is evident that irrigated and arable land has not increased. There is an
immediate need to expand agri-land by conversion of wasteland.
2. Availability of water is another important factor in guaranteeing a predictable agricultural yield,
without having to depend on the yearly, variations and unpredictability of monsoons. In the last
four decades, very few additions have occurred with respect to direct-irrigation potential .Almost
all growth has resulted from exploration of groundwater, which has led to exploitation and
depletion.
Challenges Drivers
18
3. Government sponsorship of major and monumental projects like interlinking of rivers/national
policy on water resources and implementation is a foregone need .Even if the final completion is
a generation away, the implementation is a foregone need. Even if the final completion is a
general away, the incremental process that will be made during the process of implementation
will catapult Indian agriculture to more that the targeted four percent of GDP. The short-term focus
must be on increasing and maintaining natural water, such as natural water storages, ponds,
lakes, and retention dams.
Value additions in Farming
1. Land is limited. Therefore, it must be our aim to get the maximum yield from every acre of
farmable land.
2. We have to look at the world as the source and consumer. The government must enable
farmers to move away from low-yeild to higher –value crops in a judicious manner, in order to
increase farming income and to attract a new crop of young farmers.
Return on Investment (ROI) increases in farming will attract educated youth and will become another
satisfying, future job-opportunity.
Mechanization will, therefore, justifiably increase, helping the tractor industry as a whole.
1. ROI can increase only if price uncertainty and distress-selling can be controlled. Storage of
produce and the creation of infrastructure to distribute on the world market is one solution.
2. Integration of Indian farmers to the world of commodity trading needs to be expedited- road, rail
port and airport infrastructure must be enhanced to expedite delivery.
Credit and money availability has always been a big factor in the tractor industry’s and mechanization’s
fortunes. The government must initiate a long –term policy of zero or marginal interest rates to enhance
the use of agricultural mechanization.
1. Post-harvest use of agricultural mechanization and the sophistication in accessories and
supplements are inadequate. There is a need to selectively subsidize these initiatives for a
short time to popularize usage and acceptance.
2. Commercial banks must be free to offer finance to all deserving customers with clear intention
to pay. At the same time, there must be a clear and transparent process to weed out fraud and
‘no intention to pay’ categories. There needs to be a uniform loan policy and standardized
application format across all banks.
SWOT Analysis
Here we discuss: Strength, Weakness, Opportunity and Threats related to tractor industry. Some of the
factors are variable and change from year to year but the following analysis have been carried out
according to recent trends of those factors.
19
ST
RE
NG
HT
Govt. Suppport for agricultural sector
CAGR of Argicultural sector is increasing by about 2.2%
Easy financial support available to farmers at less interest rates
Decrease in Tractor Acquistion Cost
WE
AK
NE
SS
Fragmented land segments and ownerships
Sales largely depends on Monsoon
Low farm Income makes investment difficult
Demographic inequality in Penetration of tractors
OP
PU
RT
UN
ITY
Very low penetration of tractors for medium and small land holders
Low cost of Indian Tractors open gates of opportunity
Tractors being used in transporation and non agricultural sectors
TH
RE
AT
Share of GDP due to agricultural sector is decreasing
Decelerated in Non-Agricultural usage of Tractors
20
KEY FACTORS IMPACTING SALES
Monsoon Fluctuations
Rainfall is a major factor which influences agricultural growth, which in
turn affects sales of tractors. They have a proportional relationship
between them. Rainfall, having a correlation of about 0.25 with the sales
of tractor (Source: (Dolat Capital-Tractor Industry, 2012), is not the only major
factor affecting sales.
Rainfall levels in India for the past 2 years have been low as compared
to average rainfall levels. However, if the history is to be believed, India
has never seen 3 consecutive years of low rainfall from the past 4 years.
Source of data: (Philip Capital: Tractor, 2016)
As shown in the graph, the correlation between Rainfall levels and sales
is not as per the contrary belief.
Even though rainfall was high in FY15, the sales dipped from 6,34,000
to 5,51,000 – a decrease of about 15%. Also, the rainfall levels were
high in FY14 but the sales had increased. Additionally, receding El-Nino
effect also implies a higher probability of normal rainfall in FY17.
10.23%
-1.00%
16.30%
-14.99% -11.69%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-15%
-10%
-5%
0%
5%
10%
15%
2011-12 2012-13 2013-14 2014-15 2015-16 Sale
s
Rain
fall
Levels
Relation between Rainfall and Tractor Sales
Rainfall Tractor Growth Rate % yoy
Rainfall levels have
been low in India for
the past 2 years;
believed to increase
this year.
21
Whenever a low monsoon year is followed by a high or normal monsoon
year, the growth of tractors experience a sharp rebound, growing by an
average of 12% due to better sentiment and low base.
Minimum Support Prices
While normal and good monsoon is a factor in increasing the sales of
tractors, a sustained growth primarily comes from an increase in farm
income of framers. This makes them raise a higher capital and hence
allowing them to invest in a tractor rather than labor and draught animals
for farm operations.
Historical data suggests than when a low MSP year is followed by a year
with a MSP hike of about 10%, the sales rise in double digits. The
correlation between MSP and Sales is 0.88 and is directly proportional.
Source of data: (Philip Capital: Tractor, 2016)
MSPs have seen an average hike of about 10% from 1980’s, however
it has been consistent from the past 2 years.
MSP trends along with rainfall levels primarily decide the fate of tractor
sales. MSP hike with normal rainfall increases the sales of tractors
whereas MSP fall with good rainfall will lead to decrease in sales of
tractors.
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-15%
-10%
-5%
0%
5%
10%
15%
2011-12 2012-13 2013-14 2014-15 2015-16 Sale
s
Min
imu
m S
up
po
rt P
rice
s
Axis Title
Relation between MSPs and Tractor Sales
MSP Tractor Growth w.r.t. 2010
MSPs hold a higher
correlation with
Tractor Sales as
compared to Rainfall
levels.
22
Month wise Trend in Sales
Tractor sales are not consistent throughout the year and vary from month to month as per the cropping
cycles. On the basis of seasons, there are 3 major type of crops grown in India:
Kharif Crops (Rice and Maize)
o Sowing: June-July
o Harvesting: Oct-Nov
Rabi Crops (Wheat and Barley)
o Sowing: Oct-Nov
o Harvesting: March
Summer Crops
o Sowing: April
o Harvesting: June-July
We analyze the data for the past 5 years and we come up with a particular trend in sales of tractors
month wise as follows:
Source of Data: (Tractor Manufactor Association India, Monthly Reports)
20
30
40
50
60
70
80
90
100
Sale
sTh
ou
san
ds
Month-wise Sales (Domestic Units)
Summer Crops Kharif Crops Rabi Crops
2011-12 2012-13 2013-14
2014-15 2015-16
23
Source of Data: (Tractor Manufactor Association India, Monthly Reports)
According to the above graphs, the observations are as follows:
Agricultural Sector
There is a hike in sales of tractors in September-October. This might be due to the fact that the
two main crops (Rabi and Kharif) are in season. It is harvesting period for Kharif crops and also
sowing and tilling period for the upcoming Rabi crops.
Also there is a hike in June, which is due to the fact that farm power is required for tilling the land
for Kharif crops and hence investment is made for tractors. Also during this time, harvesting of
summer crops take place.
There is a drop in sales of tractors in the month of July-August. This is due to the fact that farmers
are waiting for monsoon to pass and accordingly make their investments in the coming months.
Kharif season contributes maximum to the sales of tractor, whereas Rabi season, which extends
for more than 5 months, contributes the minimum.
Non Agricultural Sector
Non-Agricultural activities also contribute to the sales of tractors, mainly in the month of March-
April when budgets are released and government policies are drafted.
4%
6%
8%
10%
12%
14%
16%
Month-wise Sales (units in %)
Summer Crops Kharif Crops Rabi Crops
2011-12 2012-13 2013-14
2014-15 2015-16
24
OTHER FACTORS:
EXPORTS:
Exports are a crucial factor in the affecting the sales of tractors. Indian
tractors are cheaper than those manufactured in Europe and United
States. The difference in cost is huge and therefore sales of Indian
tractors are on a rise. Companies like TAFE and Mahindra Tractors have
opened their manufacturing units in China, Australia, Europe and United
States.
Source of data: (Tractor Manufactor Association India, Monthly Reports)
INTEREST RATES:
Lending rate also plays a major factor in the psychology of the farmer
who doesn’t have the required capital for a tractor and is dependent on
banks and financial institutions for the capital required.
There is a clear inverse relationship between the two. Sale of tractors
increase when the lending rate is less and vice versa.
Usually, SBI Lending price is taken as a benchmark for Interest rates.
This is because the government regulates these rates according to the
situation of market.
-
1
2
3
4
5
6
7
8
9
2011 2012 2013 2014 2015 2016
Tho
usa
nd
s
Exports
As Export increases,
Indian Tractor
companies tend to
manufacture more
units to fill the
Supply-Demand
gap.
Banks finance about
70-75% of the loan to
value
Interest rates is 10-
15%
25
TRACTOR FINANCING
Tractor finance qualifies for priority sector lending according to standards set by Government of India.
The banks are mandated to spend 40% of their total lending to priority sectors. Tractors qualify for 4%
direct and around 15% indirect lending. Source: (Dolat Capital-Tractor Industry, 2012)
Banks usually finance about 70-75% of the loan to value for about 6-8 years. The interest rate differs
from bank to bank and also from year to year but it usually varies between 10 to 15%
Historical data suggests that the percentage of total tractors which were financed are decreasing since
FY09. This is mainly due to higher farm incomes and booming rural economy.
NON-AGRICULTURAL SECTOR
Almost around 30% of tractors are used in Non-Agricultural sector, i.e. for hoarding and transportation.
These are primarily used in the following sectors:
Infrastructure Sector
Mining Sector
Industrial Sector
One of the reasons for sudden drop in tractor sales FY14 to FY15 was due to sudden drop in growth of
Infrastructure Sector whereas Mining and Industrial sectors are almost constant from the last 5 years.
26
MAJOR PLAYERS
The 3 major players in Indian tractor industry are Mahindra tractors, TAFE and Escort Tractors. Their
information is as follows:
Mahindra tractors
About Mahindra Tractors:
"Mahindra" is the India's No.1 tractor maker for more than three decades now. They are the only tractor
company to have won the Deming Prize (2003) and Japan Quality Medal (2007). Their high quality, tough
and durable tractors and implements raise productivity in farms across all continents on earth. They have
global tie-ups, most notably with Jiangsu Yueda Group in China and Mitsubishi Agricultural Machinery of
Japan.
In 2007, Farm Equipment Sector, Mahindra & Mahindra Ltd. took over Punjab Tractor Ltd. and added
Swaraj to its brand stable. FES has 8 state-of-the-art tractor manufacturing plants in India located in
Zaheerabad, Mumbai, Nagpur, Rudrapur, Jaipur, Rajkot and Mohali (Swaraj- 2 plants).
Source: (Mahindra Tractors, 2016)
History and Awards:
1963•Formation of International Tractor Company of India Ltd
1994
•Autonomous sector of M&M - Farm Division (FES)
•Subsidiary company Mahindra USA (MUSA) formed
2003•Won the Deming Application Prize
2007
•Acquired leading Indian tractor company – Punjab Tractors
•Won the Japan Quality Medal
2009•Mahindra Launches Samriddhi by Mahindra to Deliver Farm Tech Prosperity
2010•India’s first 15 HP Tractor - Yuvraj 215 launched.
2013•Swaraj Receives the TPM award and Farm Division Plants receive the TPM consistency award
2014•Mahindra rolls out the 2 millionth tractors
27
Sales and Competition:
Key points:
Mahindra Tractors had an increase in their production from FY13
to FY14 but their market shared dropped form 42% to 39%
FY15 had a drop of 15% with respect to Tractor Production in
FY14 due to deficit rainfall, but production levels of Mahindra
Tractors had a drop of 18.5%, which is more than overall drop of
the tractor industry.
TAFE limited
About TAFE:
Tractors and Farm Equipment Limited (TAFE), is an Indian tractor major
incorporated in 1960 at Chennai, with an annual turnover of INR 93
billion (2014-15). The third-largest tractor manufacturer in the world and
the second largest in India by volumes, TAFE wields about 25% market
share of the Indian tractor industry with a sale of over 150,000 tractors
(domestic and international) annually.
198 220 223
247
210
-
41% 41%42%
39%38%
30%
32%
34%
36%
38%
40%
42%
44%
46%
48%
50%
-
50
100
150
200
250
300
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
Tho
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nd
s
Mahindra Tractors
Tractor Production Market Share
Increasing Global Presence
Oldest brand in tractor
Production
Mahindra Tractors is
the only company to
win Deming Prize
(2003)
28
With six tractor plants, an engines plant, two gears and transmission
components plants, two engineering plastics units, two facilities for
hydraulic pumps and cylinders and one batteries plant besides other
facilities, TAFE employs over 2500 engineers apart from a number of
specialists in other disciplines.
Location of plants: Chennai, Madurai, Doddaballapur, Bhopal, Alwar and
Parwanoo. Tafe also has manufacturing plants in Turkey and China.
History and Awards:
From a humble beginning with just one tractor model in 1961, TAFE
today is recognized as a high quality mass-manufacturer with an
extensive product range to meet the expectations of every farmer and
every farm mechanization need. TAFE's partnership with AGCO
Corporation and the Massey Ferguson brand for over 55 years is a
stellar example of its commitment to building long-term relationships with
its stakeholders, through fair and ethical business practices.
TAFE is committed to the Total Quality Movement (TQM). In the recent
past various plants of TAFE have garnered, three 'TPM Excellence
Awards' from the Japan Institute of Plant Management, the 'Frost &
Sullivan - IMEA Award' for significant progress towards reliable
processes, the 'Regional Contributor Award' for quality supplies from
Toyota Motor Company, Japan, and the 'Manufacturing Supply Chain
Operational Excellence - Automobiles Award' at the second Asia
Manufacturing Supply Chain Summit for its supply chain transformation,
as well as a number of other regional awards for TPM excellence.
Its tractor plants are certified under ISO 9001 and under ISO 14001 for
their environment friendly operations. In 2008, Business Standard
awarded TAFE the 'Star Award for Unlisted Companies' and in 2013 the
Public Relations Council of India conferred TAFE with the 'Corporate
Citizen of the Year Award'. Source: (TAFE Profile, 2016)
Strong Customer & Quality focus
Brand Strategy
TAFE is the 3rd
largest Tractor
Manufacturer in the
world and 2nd largest
in India by volumes.
29
Sales and Competition:
Key points:
FY11 to FY12, the production of tractors was increased, thought the market share for TAFE
tractors declined from 245 to 225.
Also from FY14 to FY15, the production level fell sharply but the market share for TAFE tractors
remained constant.
Escort Tractors
About Escort Tractors:
Escorts Agri Machinery was launched in 1960. The company manufactures tractors under the brand
names of Farmtrac, Powertrac and Steeltrac It has four manufacturing plants in Faridabad and one
subsidiary unit in Poland in the name of Farmtrac Europe. The Escorts Group is among India's leading
engineering conglomerates operating in the high growth sectors of agri-machinery, construction &
material handling equipment, railway equipment and auto components.
Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the agricultural
growth of India for over five decades. One of the leading tractor manufacturers of the country, Escorts
offers a comprehensive range of tractors, more than 45 variants starting from 25 to 80 HP. Escort,
Farmtrac and Powertrac are the widely accepted and preferred brands of tractors from the house of
Escorts.
History:
Escorts Group was founded in 1944 by two brothers, Hari Nanda(b.19180 adn Yudi Nandaand Yudi
Nanda, in the name of Escorts Agents Ltd. in Lahore. .
116 118 117
152 138
-
24%22% 22%
24%25%
10%12%14%16%18%20%22%24%26%28%30%
-
20
40
60
80
100
120
140
160
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
Tho
usa
nd
s
TAFE Tractors
Tractor Production Market Share
30
They started business career in Jammu at fairly early age with family
enterprise "Nanda Bus Service" which pioneered organised transport
system in North India and the master-mind behind 'ESCORTS' industrial
business. H.P Nanda was also the former director of RBI BANK and
IDBI. ESCORTS of which he was both director and President. Escorts
Limited was incepted in 1960 after the company set up its manufacturing
base at Faridabad. Since inception, Escorts Group has been associated
with engineering companies such as Minneapolis Moline, Massey
Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J.C.
Bamford Excavators, Yamaha, Claas, Carraro, First Pacific Company,
Hughes Communications, Jeumont Schneider, Dynapac, etc.
Sales and Competition:
Key Points:
Market Share of Escort tractors have been continuously
decreasing mainly due to competitive prices of Sonalika Tractors
and entrance of new competitors such as John Deere and New
Holland.
Escort tractor needs to cope up with the increasing production of
tractor units as - In FY11 they were producing 77,000 units and
were having a hold of 16% market share; but in FY14 they were
producing 89,000 units and their market share slumped down to
14%.
77
86 80
89
66
-
16% 16%15%
14%12%
0%2%4%6%8%10%12%14%16%18%20%22%24%
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
-
10
20
30
40
50
60
70
80
90
100
Tho
usa
nd
s
Escort Tractors
Tractor Production Market Share
Market Share for
Escort Tractors has
been rapidly
decreasing which
can be a cause of
worry.
31
GOVERNMENT INITIATIVES
As a large part of Indian population is into Agriculture and around 50% of economically less stable
populations falls under it, the Government of India has launched several schemes over the last decade
which will gradually show their effect somewhere around 2017-2020. These are aimed at improving
farmers’ access to quality farm input and thus increasing production and yields. Some of the schemes
are as follows:
Prime Minister Krishi Sinchayee Yojana (PMKSY)
Launched in July 2015, it is a national mission to improve farm productivity and ensure better utilization
of the resources in the country. A budget of ₹500 billion (US$7.4 billion) in a time span of five years has
been allocated to this scheme. It has been formulated with the vision of extending the coverage of
irrigation ‘Har Khet ko pani’ and improving water use efficiency ‘More crop per drop' in a focused manner
with end to end solution on source creation, distribution, management, field application and extension
activities. PMKSY has been formulated amalgamating ongoing schemes viz. Accelerated Irrigation
Benefit Program (AIBP) of the Ministry of Water Resources, River Development & Ganga Rejuvenation
(MoWR,RD&GR), Integrated Watershed Management Program (IWMP) of Department of Land
Resources (DoLR) and the On Farm Water Management (OFWM) of Department of Agriculture and
Cooperation (DAC).
Source: (PMKSY, 2015)
National Food Security Mission (NFSM)
Launched in 2007, National Development Council adopted a resolution to launch a Food Security Mission
comprising rice, wheat and pulses to increase the production of rice by 10 million tons, wheat by 8 million
tons and pulses by 2 million tons by the end of the Eleventh Plan (2011-12). The Mission is being
continued during 12th Five Year Plan with new targets of additional production of food grains of 25 million
tons of food grains comprising of 10 million tons rice, 8 million tons of wheat, 4 million tons of pulses and
3 million tons of coarse cereals by the end of 12th Five Year Plan.
The National Food Security Mission (NFSM) during the 12th Five Year Plan will have five components
(i) NFSM- Rice
(ii) NFSM-Wheat
(iii) NFSM-Pulses
(iv) NFSM-Coarse cereals
(v) NFSM-Commercial Crops.
Source: (NFSM, 2007)
32
Marco Management of Agriculture (MMA)
Launched in 2001, MMA is essentially a Central Government-sponsored scheme, focusing on provision
and promotion of hybrid seeds, farm mechanization and integrated cereal-development programs.
Rashtriya Krishi Vikas Yojana (RKVY)
It is a State Plan Scheme of Additional Central Assistance launched in August 2007 as a part of the 11th
Five Year Plan by the Government of India. Launched under the aegis of the National Development
Council, it seeks to achieve 4% annual growth in agriculture through development of Agriculture and its
allied sectors during the period under the 11th Five Year Plan (2007–11).
Water and Irrigation Management
Total irrigation outlay by state governments has increased by 17% a year, on average, between 2003
and 2012, reflecting state governments’ efforts to increase irrigation. The Planning Commission in its
Twelfth Five-Year Plan (2012-2017) recommended outlay of Rs 3,400 bn to execute Major and Medium
Irrigation projects in India, up from Rs 2,318 bn during preceding plan.
Secretary (DAC)
Additional Secretary (RKVY)
Joint Secretary (RKVY)
Director (RKVY)
Under Secretary (RKVY)
Secttion Officer (RKVY)
33
INITIATIES AND EFFORTS BY
TRACTOR COMPANIES
Mahindra Rental Farm Equipment
India’s largest tractor maker by sales is looking at starting farm
equipment rentals. The venture TRRINGO will operate on a franchisee-
based model and claims to bring in digital technology to the tractor rental
business.
Mahindra will set up this venture as a start-up, in which it will invest
upwards of Rs.10 crore. The company estimates the size of the tractor
hiring market to be about Rs.15, 000 crore per annum.
TRRINGO is a first of its kind technology driven model in the tractor
rental business for those farmers who may not be able to afford their
own tractor and farm equipment. The TRRINGO service will operate on
a dual business model.
The first model is one where the franchisee will invest in tractors and
equipment to rent them out and set up a hub for
operations. TRRINGO will use a proprietary digital platform as an
enabler to process orders and pass them on to the nearest franchisee
through location based mapping. It supports easy accessibility and
service through a dedicated App and a toll-free number. Franchisee
could also tie-up with tractor owners in the vicinity enabling them to rent
out equipment to farmers on a commission basis.
In the second C2C business model, large farmers who own expensive,
high-end equipment can rent out their assets thereby optimizing
utilization based on seasonality, cutting across geographies.
TRRINGO would connect the asset owner to the user through the App.
The initiative will drive the mechanization of the Indian agricultural
sector, enabling smaller farmers to access technology that can boost
their yields and thereby overall farm prosperity.
TRRINGO to begin operations in June 2016 and scale up to five states
by August 2016. The main motive is to make tractor and implement
rentals more accessible to farmers through a branded service
Source: (Mahindra Tractors, 2016)
Mahindra Rental
Farm Equipment
Startup, TRRINGO,
estimates the size of
tractor hiring
market to be Rs.
15,000 crore per
annum
Sonalika has been
pricing its products
10-15% below the
competitive prices.
New Holland and
SAME DEUTZ have
entered the industry
through higher HP
tractors.
34
International Tractors Aggressive Pricing
While Mahindra tractors remain the undisputed leader in Market share, Sonalika (International Tractors)
have been giving them a tough competition especially in Northern India (Punjab and Haryana). The
competition has been heating up and market share of International Tractors has been rising rapidly. It
has been the most aggressive player, pricing its products 10-15% below the competitive prices.
It has also doubled its capacity to 200,000 units and is targeting 20% of market share now. Despite higher
competitive prices, it continues to earn more than its peers due to better marketing strategies and higher
volume of sales.
Innovative Marketing Strategies, especially Tractor Exchange programs and Credit help to farmers
helped the company see a sharp jump in its market share over the last 5 years. However, less profits to
dealers and their unsatisfactory response is a problem for International Tractors over the long term. The
average age of Sonalika’s Dealer is about 2-3 years, which can be a worrying factor for the company.
Higher HP tractors
Foreign companies like New Holland and SAME DEUTZ have entered the Tractor Industry majorly
through higher HP ( > 51HP) tractors which is more prevalent in US. These companies already had the
technology for higher HP tractors and they own 12% of the total market share in the higher HP segment.
35
NEW TECHNOLOGIES AND
IMPROVEMENTS IN TRACTORS
4 WD Tractors:
Tractors can generally be classified as two-wheel drive and four-wheel
drive tractors. Four-wheel drive tractors began to appear in the 1960s.
Some four-wheel drive tractors have the standard "two large, two small"
configuration typical of smaller tractors, while some have “four large”,
powered wheels.
The larger tractors are typically an articulated, center-hinged design
steered by hydraulic cylinders that move the forward power unit while
the trailing unit is not steered separately.
Anti-lift Tractors:
Tractors in general are usually vulnerable because of their front Lift
nature, resulting in reduced or no steering of front wheels. This
endangers the safety of the driver and results in considerable damage
which increases the maintenance cost for the owner.
Through series of path breaking measures such as: shifting the center
of gravity and hitch point forward, unique hub-reduction transmission,
increased wheel base, heavy front axle, stiffener bars and plates,
custom-designed 85kg front bumpers and high-intensity extra front
lamps; Lifting vulnerability has been decreased. These features
considerably improve the front Lift resistance capability of the tractor.
Other Improvements:
IMPROVEMENT IN FUEL EFFICIENCY
BETTER TRACTOR ENGINES AND TRANSMISSIONS
STEERING SYSTEM
ERGONOMICS AND OPERATIONAL SAFETY
Usage of 4 WD and
Anti-Lift Tractors
have been on a rise
in India due to its
more efficient
usage.
36
CONCLUSION
After considering the factors responsible for growth of Tractor Industry, we believe that there will be a
rise in sales of tractors and following are our views on the growth.
Exports have been on a rise and are expected to touch 80,000 mark (refer Graph XX) in FY17.
Domestic sales will also be on a rise with respect to FY16, considering the fact that MSPs will
stay constant (refer page 21, Graph XX) and Rainfall levels will increase due to weakening of El-
Nino (Source: Australian Bureau of Meteorology) and a good start of monsoon in late June.
Although the usage of tractors for Non-agricultural process is still low (as compared to FY12 and
FY13, Refer page 25), the combination of Good Rainfall Levels, Constant MSPs, Low Lending
Rate and Ease in financing of tractor capital will lead to an overall increase in sales of tractors for
FY17.
Month wise analysis suggests that there is a hike in sales of tractors in September-October, due
to the fact that it is harvesting period for Kharif crops and also sowing and tilling period for the
upcoming Rabi crops. There is also a drop in sales of tractors in the month of July-August farmers
are waiting for monsoon to pass and accordingly make their investments in the coming months.
But this increase will not be demographically uniform because penetration in South and West is
low and hence tractor demand will be more; whereas in North, replacement cycle majorly will drive
the demand. Mahindra Tractors as well as TAFE which have their roots in south will benefit from
this non-uniformity.
TRRINGO (Refer Page 33) will affect the market heavily as this will make tractors available to
small farmers without the need of capital investment. Mahindra Tractors will focus on small and
marginal land owners, something which was ignored by others. This will have a positive effect on
Market share of Mahindra Tractors. Also an initiative by International Tractors, exchanging old
tractor for new one, is very popular in Punjab and Haryana, boosting its market share there.
As the market is shifting to higher HP tractors, Mahindra needs to cope up with the scenario.
International Tractors was fast in realizing the change in market demand and owns a large market
share in higher HP tractors. International Companies like New Holland and SAME DEUTZ are
also benefitting from this shift to higher HP.
37
REFERENCES
Agricultural Ministry, India. (2013). Retrieved from Ministry of Agricultre.
Dolat Capital-Tractor Industry. (2012). Retrieved from Dolat Capita: www.dolatcapital.com
Kodak Institutional Equities. (2013, January). Retrieved from Kodak.
Mahindra Tractors. (2016). Retrieved from Mahindra Ltd.: http://www.mahindra.com/
NFSM. (2007). Retrieved from NFSM: http://nfsm.gov.in/Default.aspx
Philip Capital: Tractor. (2016, March 28). Retrieved from Philip Capital:
www.phillipcapital.in%2FAdmin%2FResearch%2F1648715032PC_-_Tractor_Industry_report_-
_March_2016_20160328142538.pd
PMKSY. (2015). Retrieved from PMKSY: http://pmksy.gov.in/
TAFE Profile. (2016). Retrieved from TAFE: http://www.tafe.com/profile.php#corporate_profile
Tractor Manufactor Association India, Monthly Reports. (n.d.). Retrieved from Tractor Manufactor
Association : http://tmaindia.in/
Wikipedia. (n.d.). Retrieved from Agriculture in India, Wikipedia:
https://en.wikipedia.org/wiki/Agriculture_in_India
