Mahindra & Mahindra, the Indian multinational automobile manufacturer, recently opened its first dedicated farm machinery (non-tractor) plant in Pithampur, Madhya Pradesh. The plant marks the company’s entry into the dedicated farm machinery segment, and is a significant milestone for the company, which has been a leading player in the Indian automotive industry for over seven decades. Manufacturing Today visited the FES plant in Pithampur. Built at a cost of INR 100 Crores, it was inaugurated in November 2022 by Minister of Agriculture and Rural welfare, Narendra Singh Tomar.
So, what promoted the foray of Mahindra into farm machinery? Kairas Vakharia, the Senior Vice President & Business Head of Farm Machinery at Mahindra & Mahindra explained, “Mahindra & Mahindra (M&M) is the world’s largest tractor manufacturer, producing over 400,000 tractors annually with a market share of over 41% in the Indian tractor market. In India, the turnover of the tractor industry is close to 50,000 crores, while the turnover of the farm machinery industry, excluding tractors, is only about 9,500 crores. However, globally, the farm machinery industry revenue, excluding tractors, is about 40% higher than that of the tractor industry. India has a smaller farm machinery industry due to several factors, such as small farm sizes and the abundance of labour in India, which makes specialized farm machinery less common. Additionally, the industry in India has not been as developed as globally, resulting in fragmentation and a majority of the industry in the SME sector.” He adds, “However, M&M sees farm machinery as a growth sector and is dedicated to becoming the leader in this segment. The farm machinery sector in India is poised for rapid growth and increasing sophistication in terms of products demanded by farmers, providing an opportunity for M&M. Therefore, the trajectory for M&M’s growth is the farm sector, with an emphasis on expanding the farm machinery industry in India.”
Over the last few years, there has been a considerable progress in agriculture mechanization. A significant proportion of farmers in the country have already started moving from using animate sources to mechanical equipment to power their farming activities. As a result of increasing farm mechanization trends, the agricultural equipment market has witnessed strong growth in the past few years. This market is currently being driven by a number of factors, such as easy availability of credit, government incentives, increasing agricultural productivity, the emergence of contract farming, increasing rural incomes, etc. So what sets Mahindra’s farm equipment apart from the competitors, as the competitors in the segment are mostly regional ones the farmers have grown used to? Kairas explains, “India’s agricultural industry is undergoing significant changes as farmers increasingly seek to improve profits, adapt to climate change, and deal with demographic and attitudinal shifts. This has led to a shift in demand towards modern and specialized farm machinery. While traditional methods involving labour or semi-mechanized machinery were common, farmers now seek equipment from trusted brands such as Mahindra and Swaraj that are designed to address specific applications.
Specialised machinery is required for tasks such as tillage, crop protection and harvesting, and after-sales service is a crucial factor in choosing a supplier. The industry is becoming more organised as larger companies are needed to provide the necessary reach for after-sales service and specialised machinery. (Repeated) As the industry becomes more organised, farmers will likely have access to better equipment that will allow them to be more productive and profitable.” He further says, “We cater to customer needs and sometimes change farming methods by introducing new machinery like the precision potato planter. Its precision plating capabilities increases productivity. It is more expensive but pays for itself with increased yields.”
M&M’s FES Pithampur plant has state-of-the-art machinery, which works together seamlessly to produce high-quality farm equipment. The focus of the plant is to ensure the highest levels of quality and efficiency in production. One of the highlights of the plant is its testing facilities, which ensure that the tractors and farm equipment meet the company’s stringent quality standards. The testing process includes checks for durability, safety, performance, and other critical parameters. Mahindra has left no stone unturned in ensuring that its farm equipment is of the highest quality. M&M’s FES is a complete value chain in farm mechanization.
Read the full interview here: https://bit.ly/42yc67P