In order to meet the changing needs of farmers, Mahindra Group’s Swaraj Tractors announced on Monday that it has invested Rs 200 crore in the development of a new line of tractors in the 40–50 HP category.
The company said the new products will eventually replace its current tractors in the category.
Mahindra & Mahindra (M&M) Swaraj Division Chief Executive Officer Harish Chavan said the new products have been developed to cater to the demands of modern-day agriculture.
The new range comes with a new set of features, a different set of agri applications. We want to be future ready and that is why we are introducing the new tractors,” he noted.
It’s a mass market range right from trims with fewer features to variants with high-end features like four-wheel drive, to cater to different requirements, Chavan said, when asked to elaborate on the new tractors.
About the investment by the company to develop the new tractors, Chavan said, “We have invested close to Rs 200 crore on the project.” The 40-50 HP segment accounts for almost 50 per cent of sales in the domestic tractor industry.
Swaraj rolls out tractors from its two manufacturing plants in Mohali, Punjab.
“A third plant is also in the offing. It is likely to come up by the third quarter. In the fourth quarter we will operationalise it. The plant is in the last stage of implementation,” Chavan said.
The starting price for the new tractor line is Rs 6.9 lakh (42 HP), and the highest model in the line is Rs 9.95 lakh (50 HP).
Last month, M&M had unveiled a new range of small-sized tractors based on the OJA platform to target new geographies.
M&M aims to double its tractor exports in the next three years.
On Monday M&M company shares closed 1% below at Rs. 1,576.
As per the company filing, the total revenue grew by 21% YoY from Rs. 28,628.39 in Q1 FY23 to Rs. 34,698.68 Cr in Q1 FY24 and for the same period net profit increased by 56% YoY from Rs. 2,360.70 Cr to Rs. 3,683.87 Cr.
