SlideShare a Scribd company logo
Presented by:
Bhanupriya Choyal
3/23/2014 1
3/23/2014 2
Objectives:
•To present the overview of Farm Machinery Industry
with the focus on Tractor Industry in India.
•To analyze the prevailing trends in the Tractor
Industry.
•To analyze the Growth drivers of the Industry.
• Agricultural Machinery industry plays an important role in the Indian economy as
the agriculture sector still contributes majorly to the country’s GDP.
•Share of the sector in overall GDP is declining. However, the sector remains
significant as it employs more than 50 percent of the country’s population.
•The agricultural equipment sector is a key sector that contributes to agricultural
growth and productivity.3/23/2014 3
12
13
14
15
16
17
2007-08 2008-09 2009-10 2010-11
Share of Agriculture sector in India’s GDP (%)
GDP %
0
20
40
60
80
100
120
140
2005-06 2006-07 2007-08 2010-09 2009-10 2013-14
$66Bn
$69Bn $72Bn $79Bn
$99.2Bn
$124Bn E
Overall World agriculture equipment market is likely to grow at a rate of 4.5%
and expected to reach about $124 Bn in 2014.
Indian Agriculture equipment market contributes around 10% of global
equipment market and is sized at $10 Bn
Over the last few years Indian agricultural equipment market has been widely
exposed to international trade.
Global majors like John Deere , New Holland & Same Deutz have already
made an entry in Indian market , whereas Indian players are looking for
alliances with foreign partners overseas.
Worldwide Agriculture Equipment Market
(2006-2014),USD billion
3/23/2014 4
Chronology of Farm Mechanization in India
Pre-Green
Revolution
Era(1947-
1965)
Green
Revolution
Era(1965-1975)
Post-Green
Revolution Era
(1975 onwards)
1. Farming by traditional
methods
2. Low productivity
(0.58 t/ha/yr)
3. Increase in production
was attributed to
increase in cultivated
area
4. Farm power
availability was about
0.27 kW/ha
5. Share of animal power
sources was 98 to 88%
1. High yielding variety
,fertilizer , chemical inputs
2. Productivity increased
(1.14 t/ha/yr)
3. Need for timeliness in farm
operations realized
4. Introduction of improved
farm machinery
5. Farm power availability was
about 0.47 kW/ha
6. Share of animal power
sources decreased from
88% in 1965 to 62% in 1975
1. Use of scientific methods in
cultivation of crops
2. Raise in the productivity
level 2.14 t/ha/yr
3. Increase in the availability
of farm power to 1.2 kW/ha
4. Reduction in the share of
animal power from 62% in
1975 to 24% in 1997
5. More
implement/equipment and
machinery put to use for all
the farm operations
3/23/2014 5
1. Tractors
2. Levellers
3. Ploughs
4. Dozers
5. Scrapers
1. Seed Drills
2. Seed cum
fertilizer Drill
3. Zero till drills
4. Transplanter
1. Shovel
/Plough
2. Harrow
3. Tiller
4. Sprayer
5. Duster
1. Harvester
2. Thresher
3. Digger
4. Reaper
5. Sheller
6. Sickle/
Dao
1. Seed
extractor
2. Dehusker
3. Huller/
Dehuller
4. Cleaner
5. Grader
6. Mill
7. Dryer
Land
development,
tillage, seed
bed
preparation
Sowing
and
planting
Weeding,
inter
cultivation,
plant
protection
Harvesting
and
threshing
Post
harvest
and agro
processing
India’s agricultural equipment industry has a diverse product portfolio :
3/23/2014 6
Technology Advancement over the years…….
Tractor
drawn
mould
board
plough
Tractor
mounted Disc
Harrow
Tractor
mounted
Seed drill
Animal
drawn
mould
board
plough
Blade
Harrow
Dibbling
Stick
3/23/2014 7
Animal
drawn
planter
Tractor driven
Planter
Animal
drawn
hoe
Power
Tiller
Paddy
harvester
Self
propelled
combine
harvester
3/23/2014 9
3/23/2014 1
There is greater stress on mechanization of agriculture
There has been a sustained
increase in the adoption of
mechanization in an
attempt to ensure greater
return on investment (RoI)
and sustainability of
agriculture.
Use of power for agriculture(KW/Ha)
Source of power – percentage share over 4 decades
Ag worker Animal Tractor Power
tiller
Diesel
Engine
Electric
Motor
50
40
30
20
10
0
Mechanisation primarily
driven by increased use of
tractors, which is replacing
manual and animal labour.
3/23/2014 10
Source:www.ibef.org3/23/2014 11
3/23/2014 12
Tractor Industry in India
Overview
• Introduction
• Historical Background
Market Information
• Evolution of Market
• Current Scenario & Trends
• Market Growth Rate
• Growth Drivers
Market Players & Situation Analysis
• Industry at a glance
• Market size
• Major Players and their share
Conclusion
3/23/2014 13
Tractor Industry in India
3/23/2014 14
History of Evolution
1868 – Introduction of Farm tractors with steam
engine.
Most popular steam tractor was the Garrett4CD.
In 1907 - Henry Ford produced first gasoline powered
tractor “automotive plow”.
Later , an Irish engineer named Harry Ferguson’s
designed a hydraulic system for carrying implements.
3/23/2014 15
Market Information
• Evolution of Market
• Current Scenario & Trends
• Market Growth Rate
• Growth Drivers
Inception Phase (1945 to 1965)
Development Phase(1980 to 1992)
Regulatory Phase (1965 to 1980)
Liberalization Phase(1992 to 2002)
3/23/2014 17
Growth Phase(2002 onwards)
Industry Tractor Industry- Sales Performance
3/23/2014 18
Source : CMIE Database , ICRA Estimates
Trend in Yearly Tractor Sales Volume ( Domestic + Export)
3/23/2014 19
Industry Tractor Industry- Sales Performance
Trend in Monthly Tractor Sales Volumes (Domestic + Export)
Source : CMIE Database , ICRA Estimates
Indian Tractor Industry-Region-wise Performance
3/23/2014 20
Source : CMIE Database , ICRA Estimates
•Shift in Spotlight to Under-penetrated Markets
3/23/2014 21
Indian Tractor Industry-Region-wise Performance
Source : CMIE Database , ICRA Estimates
Indian Tractor Industry- HP-wise Performance
3/23/2014 22
•Sales to witness polarization towards high & low powered segments
Source : CMIE Database , ICRA Estimates
Tractor Industry in India
3/23/2014 23
•Exports increase with addition of new destinations
Trend in Tractor Exports from India
Source : CMIE Database , ICRA Estimates
3/23/2014 24
Tractor Industry in India-Competitive Landscape
Source : CMIE Database , ICRA Estimates
3/23/2014 25
Growth
Drivers
Indian Tractor Industry- Growth Drivers
3/23/2014 26
Lower level of Tractor penetration –scope for
further improvement
Source: World Bank , Emkay Reseach
Tractor Industry in India
3/23/2014 27
Government support for agriculture and rural development:
Indian Tractor Industry- Growth Drivers
Trend in spend on Agriculture by GOI
Source : CMIE Database , ICRA Estimates
3/23/2014 28
Indian Tractor Industry- Growth Drivers
Improved Credit Environment
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
2007
2008
2009
2010
2011
60,270
78,381
103,875
130,830
157,698
2,140
5,560
8,556
13,343
15,029
Private Banks(INR Cr) PSB(INR Cr)
Tractor Industry in India
3/23/2014 29
Indian Tractor Industry- Growth Drivers
Scarcity of farm labour : Alternate employment opportunities following
urban migration and other Government-run schemes such as the National Rural
Employment Guarantee Act (NREGA) have necessitated greater farm mechanisation.
MGNREGA - rising employment and wages
Tractor Industry in India
3/23/2014 30
Indian Tractor Industry- Growth Drivers
Increasing non-agricultural applications:
Increasing use of tractors for haulage in infrastructure and construction projects
Tractor Industry in India
3/23/2014 31
Indian Tractor Industry- Growth Drivers
Strong replacement demand :
Roughly 40% of domestic demand is from the replacement
market. The average life-cycle of a tractor has reduced to ~8-9
years from ~11-12 years.
Export Sales
Addition of new export destinations and increased offerings
by domestic manufacturers in the higher HP segment has
spurred export growth in FY11 and 9mFY12.
Monsoons among the factors supporting
tractor industry growth
Market Players & Situation Analysis
• Industry at a glance
• Market size
• Major Players and their share
Tractor Industry in India
3/23/2014 33
•The Indian tractor industry is relatively young but the largest tractor
industry in the world (accounting for 30% of Global production).
•Industry characterized as medium HP Tractor Industry because of the
fragmented land holding in India.
•Since last decade industry had been growing (Y-o-Y)@ more than
15%.
•In last two years Industry is growing (Y-o-Y) @ 28% & 24% in FY10
and FY11 respectively.
•Market size of the industry has reached to 5.5 lac units in FY11, with
industry growing at a robust pace in the past two years.
Tractor Industry in India - Major Players
3/23/2014 34
Tractor Industry in India
3/23/2014 35
Share of Major Players
M & M
40%
TAFE
23%
Escorts
10%
ITL
9%
John Deere
9%
New Holland
6%
Others
3%
Share (%)
Indian Tractor industry has 13
national and few regional
participants. The market share
is however, concentrated
amongst the top five
manufacturers, accounting for
over 90% of total volumes.
Tractor Industry in India
3/23/2014 36
M & M TAFE
Escorts ITL
John
Deere
New
Holland
22
17
22 21
44
40
Y-o-Y Growth(%)
3/23/2014 37
Domestic & Foreign Collaborations of Tractor
Manufacturers
Price List of Different Categories Tractors
Tractor Industry in India
3/23/2014 38
REFERENCES
•www.icra.in
•www.cmie.com
•www.ibef.in
•www.zinnov.com
•http://agricoop.nic.in
•www.ficci.com
•www.emkayglobal.com
3/23/2014 39

More Related Content

What's hot

The role of the state and the private sector in promoting sustainable mechani...
The role of the state and the private sector in promoting sustainable mechani...The role of the state and the private sector in promoting sustainable mechani...
The role of the state and the private sector in promoting sustainable mechani...
International Food Policy Research Institute - Development Strategy and Governance Division
 
Custom Hiring Centre
Custom Hiring CentreCustom Hiring Centre
Custom Hiring Centre
MD SALMAN ANJUM
 
farm mechanization
farm mechanization farm mechanization
farm mechanization
Prabir Datta
 
Marketing channel
Marketing channelMarketing channel
System of rice Intensification (SRI)
System of rice Intensification (SRI)System of rice Intensification (SRI)
System of rice Intensification (SRI)
Suraj Poudel
 
Farm mechanization in india
Farm mechanization in indiaFarm mechanization in india
Farm mechanization in indiaaswath9882
 
Integarted nutrient management
Integarted nutrient managementIntegarted nutrient management
Integarted nutrient management
Ankush Singh
 
Precision farming rohit pandey
Precision farming rohit pandeyPrecision farming rohit pandey
Precision farming rohit pandey
Govardhan Lodha
 
Problems and prospects of farm mechanization in India with special reference ...
Problems and prospects of farm mechanization in India with special reference ...Problems and prospects of farm mechanization in India with special reference ...
Problems and prospects of farm mechanization in India with special reference ...
Devegowda S R
 
Fodder crop - Napier grass, Fiber crop - Hemp
Fodder crop - Napier grass, Fiber crop - HempFodder crop - Napier grass, Fiber crop - Hemp
Fodder crop - Napier grass, Fiber crop - Hemp
NikkiM12
 
Farm Mechanization in India
Farm Mechanization in IndiaFarm Mechanization in India
Farm Mechanization in India
HARI NUNAVATH
 
Scope and importance, principles and concepts of precision horticulture
Scope and importance, principles and concepts of precision horticulture Scope and importance, principles and concepts of precision horticulture
Scope and importance, principles and concepts of precision horticulture
Dr. M. Kumaresan Hort.
 
Agri Export Zones
Agri Export ZonesAgri Export Zones
Agri Export Zones
VisanthGuhan
 
Credit seminar OA (organic farming & its impact on food grain security in...
Credit seminar OA (organic farming & its impact on food grain security in...Credit seminar OA (organic farming & its impact on food grain security in...
Credit seminar OA (organic farming & its impact on food grain security in...
Komandla venkatkiran Reddy
 
KUS REPORT (2020-21), Rasulpur, Jajpur
KUS REPORT (2020-21), Rasulpur, JajpurKUS REPORT (2020-21), Rasulpur, Jajpur
KUS REPORT (2020-21), Rasulpur, Jajpur
RitabrataSarkar3
 
Doubling farm income ifpri final pres new
Doubling farm income ifpri final pres newDoubling farm income ifpri final pres new
Doubling farm income ifpri final pres new
Jaspreet Aulakh
 
Role of farm women in indian agriculture
Role of farm women in indian agricultureRole of farm women in indian agriculture
Role of farm women in indian agriculturek venkatesha venkat
 
Agribusiness policies in india
Agribusiness policies in indiaAgribusiness policies in india
Agribusiness policies in india
FinOnseT
 
Nafed and tanfed
Nafed and tanfedNafed and tanfed
Nafed and tanfed
Sakthivel R
 

What's hot (20)

The role of the state and the private sector in promoting sustainable mechani...
The role of the state and the private sector in promoting sustainable mechani...The role of the state and the private sector in promoting sustainable mechani...
The role of the state and the private sector in promoting sustainable mechani...
 
Custom Hiring Centre
Custom Hiring CentreCustom Hiring Centre
Custom Hiring Centre
 
farm mechanization
farm mechanization farm mechanization
farm mechanization
 
Marketing channel
Marketing channelMarketing channel
Marketing channel
 
System of rice Intensification (SRI)
System of rice Intensification (SRI)System of rice Intensification (SRI)
System of rice Intensification (SRI)
 
Farm mechanization in india
Farm mechanization in indiaFarm mechanization in india
Farm mechanization in india
 
Integarted nutrient management
Integarted nutrient managementIntegarted nutrient management
Integarted nutrient management
 
Precision farming rohit pandey
Precision farming rohit pandeyPrecision farming rohit pandey
Precision farming rohit pandey
 
Problems and prospects of farm mechanization in India with special reference ...
Problems and prospects of farm mechanization in India with special reference ...Problems and prospects of farm mechanization in India with special reference ...
Problems and prospects of farm mechanization in India with special reference ...
 
Fodder crop - Napier grass, Fiber crop - Hemp
Fodder crop - Napier grass, Fiber crop - HempFodder crop - Napier grass, Fiber crop - Hemp
Fodder crop - Napier grass, Fiber crop - Hemp
 
Farm Mechanization in India
Farm Mechanization in IndiaFarm Mechanization in India
Farm Mechanization in India
 
Scope and importance, principles and concepts of precision horticulture
Scope and importance, principles and concepts of precision horticulture Scope and importance, principles and concepts of precision horticulture
Scope and importance, principles and concepts of precision horticulture
 
Nafed
NafedNafed
Nafed
 
Agri Export Zones
Agri Export ZonesAgri Export Zones
Agri Export Zones
 
Credit seminar OA (organic farming & its impact on food grain security in...
Credit seminar OA (organic farming & its impact on food grain security in...Credit seminar OA (organic farming & its impact on food grain security in...
Credit seminar OA (organic farming & its impact on food grain security in...
 
KUS REPORT (2020-21), Rasulpur, Jajpur
KUS REPORT (2020-21), Rasulpur, JajpurKUS REPORT (2020-21), Rasulpur, Jajpur
KUS REPORT (2020-21), Rasulpur, Jajpur
 
Doubling farm income ifpri final pres new
Doubling farm income ifpri final pres newDoubling farm income ifpri final pres new
Doubling farm income ifpri final pres new
 
Role of farm women in indian agriculture
Role of farm women in indian agricultureRole of farm women in indian agriculture
Role of farm women in indian agriculture
 
Agribusiness policies in india
Agribusiness policies in indiaAgribusiness policies in india
Agribusiness policies in india
 
Nafed and tanfed
Nafed and tanfedNafed and tanfed
Nafed and tanfed
 

Similar to Agricultural Equipment Industry

Role of farm machinery and power in farm.pptx
Role of farm machinery and power in farm.pptxRole of farm machinery and power in farm.pptx
Role of farm machinery and power in farm.pptx
vijayrajsingh12
 
Indian Tractor Market : Perspective & Analysis
Indian Tractor Market : Perspective & AnalysisIndian Tractor Market : Perspective & Analysis
Indian Tractor Market : Perspective & Analysis
Vivek Singhal
 
Transforming agriculture through_mechanisation
Transforming agriculture through_mechanisationTransforming agriculture through_mechanisation
Transforming agriculture through_mechanisation
Prateek Goel
 
Indian tractor industry
Indian tractor industryIndian tractor industry
Indian tractor industryRB CHAUHAN
 
Engineering Sectore Report - February 2017
Engineering Sectore Report - February 2017Engineering Sectore Report - February 2017
Engineering Sectore Report - February 2017
India Brand Equity Foundation
 
Engineering Sectoral Report - October 2016
Engineering Sectoral Report - October 2016Engineering Sectoral Report - October 2016
Engineering Sectoral Report - October 2016
India Brand Equity Foundation
 
Tractor Industry Report LinkedIn
Tractor Industry Report LinkedInTractor Industry Report LinkedIn
Tractor Industry Report LinkedInArpit Jhamb
 
Engineering Sectore Report - January 2017
Engineering Sectore Report - January 2017Engineering Sectore Report - January 2017
Engineering Sectore Report - January 2017
India Brand Equity Foundation
 
Correct file deere (1)
Correct file deere (1)Correct file deere (1)
Correct file deere (1)Loven Love
 
Engineering Sector Report - March 2017
Engineering Sector Report - March 2017Engineering Sector Report - March 2017
Engineering Sector Report - March 2017
India Brand Equity Foundation
 
Engineering Sector Report June 2017
Engineering Sector Report June 2017Engineering Sector Report June 2017
Engineering Sector Report June 2017
India Brand Equity Foundation
 
Farm equipment market
Farm equipment marketFarm equipment market
Farm equipment market
ameliasimon0
 
Engineering Sector Report May 2017
Engineering Sector Report May 2017Engineering Sector Report May 2017
Engineering Sector Report May 2017
India Brand Equity Foundation
 
Short report on agricultural machinery indo- italian coc
Short report on agricultural machinery   indo- italian cocShort report on agricultural machinery   indo- italian coc
Short report on agricultural machinery indo- italian coc
bhattacharya18
 
Pulses: India and World
Pulses: India and WorldPulses: India and World
Pulses: India and World
Anand Thokal
 
Engineering Sector Report April 2017
Engineering Sector Report April 2017 Engineering Sector Report April 2017
Engineering Sector Report April 2017
India Brand Equity Foundation
 
Market Research Report : Agricultural equipment market in india 2015 - Sample
Market Research Report : Agricultural equipment market in india 2015 - SampleMarket Research Report : Agricultural equipment market in india 2015 - Sample
Market Research Report : Agricultural equipment market in india 2015 - Sample
Netscribes, Inc.
 
Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...
Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...
Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...
essp2
 
Transforming agriculture through_mechanisation
Transforming agriculture through_mechanisationTransforming agriculture through_mechanisation
Transforming agriculture through_mechanisation
HARISH J
 

Similar to Agricultural Equipment Industry (20)

Role of farm machinery and power in farm.pptx
Role of farm machinery and power in farm.pptxRole of farm machinery and power in farm.pptx
Role of farm machinery and power in farm.pptx
 
Farm machinery
Farm machineryFarm machinery
Farm machinery
 
Indian Tractor Market : Perspective & Analysis
Indian Tractor Market : Perspective & AnalysisIndian Tractor Market : Perspective & Analysis
Indian Tractor Market : Perspective & Analysis
 
Transforming agriculture through_mechanisation
Transforming agriculture through_mechanisationTransforming agriculture through_mechanisation
Transforming agriculture through_mechanisation
 
Indian tractor industry
Indian tractor industryIndian tractor industry
Indian tractor industry
 
Engineering Sectore Report - February 2017
Engineering Sectore Report - February 2017Engineering Sectore Report - February 2017
Engineering Sectore Report - February 2017
 
Engineering Sectoral Report - October 2016
Engineering Sectoral Report - October 2016Engineering Sectoral Report - October 2016
Engineering Sectoral Report - October 2016
 
Tractor Industry Report LinkedIn
Tractor Industry Report LinkedInTractor Industry Report LinkedIn
Tractor Industry Report LinkedIn
 
Engineering Sectore Report - January 2017
Engineering Sectore Report - January 2017Engineering Sectore Report - January 2017
Engineering Sectore Report - January 2017
 
Correct file deere (1)
Correct file deere (1)Correct file deere (1)
Correct file deere (1)
 
Engineering Sector Report - March 2017
Engineering Sector Report - March 2017Engineering Sector Report - March 2017
Engineering Sector Report - March 2017
 
Engineering Sector Report June 2017
Engineering Sector Report June 2017Engineering Sector Report June 2017
Engineering Sector Report June 2017
 
Farm equipment market
Farm equipment marketFarm equipment market
Farm equipment market
 
Engineering Sector Report May 2017
Engineering Sector Report May 2017Engineering Sector Report May 2017
Engineering Sector Report May 2017
 
Short report on agricultural machinery indo- italian coc
Short report on agricultural machinery   indo- italian cocShort report on agricultural machinery   indo- italian coc
Short report on agricultural machinery indo- italian coc
 
Pulses: India and World
Pulses: India and WorldPulses: India and World
Pulses: India and World
 
Engineering Sector Report April 2017
Engineering Sector Report April 2017 Engineering Sector Report April 2017
Engineering Sector Report April 2017
 
Market Research Report : Agricultural equipment market in india 2015 - Sample
Market Research Report : Agricultural equipment market in india 2015 - SampleMarket Research Report : Agricultural equipment market in india 2015 - Sample
Market Research Report : Agricultural equipment market in india 2015 - Sample
 
Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...
Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...
Smallholder Agricultural Mechanization: The Role of Service Hiring Market in ...
 
Transforming agriculture through_mechanisation
Transforming agriculture through_mechanisationTransforming agriculture through_mechanisation
Transforming agriculture through_mechanisation
 

More from KiritKene

CASA Presentation
CASA PresentationCASA Presentation
CASA PresentationKiritKene
 
Bailment & pledge
Bailment & pledgeBailment & pledge
Bailment & pledge
KiritKene
 
Delhi Milk Scheme
Delhi Milk SchemeDelhi Milk Scheme
Delhi Milk Scheme
KiritKene
 
Analysis of Casa Ratio of IDBI Bank, Sitabuldi Branch Nagpur
Analysis of Casa Ratio of IDBI Bank, Sitabuldi Branch NagpurAnalysis of Casa Ratio of IDBI Bank, Sitabuldi Branch Nagpur
Analysis of Casa Ratio of IDBI Bank, Sitabuldi Branch Nagpur
KiritKene
 
Transfer of goods
Transfer of goodsTransfer of goods
Transfer of goodsKiritKene
 
Present status & future prospects in marine aquaculture
Present status & future prospects in marine aquaculturePresent status & future prospects in marine aquaculture
Present status & future prospects in marine aquacultureKiritKene
 
Present Status, Export potential and Challenges of Fisheries Industry in India
Present Status, Export potential and Challenges of Fisheries Industry in IndiaPresent Status, Export potential and Challenges of Fisheries Industry in India
Present Status, Export potential and Challenges of Fisheries Industry in IndiaKiritKene
 
The blue revolution.pptx
The blue revolution.pptxThe blue revolution.pptx
The blue revolution.pptxKiritKene
 
Identifying market segments & targets
Identifying market segments & targetsIdentifying market segments & targets
Identifying market segments & targetsKiritKene
 
Designing & managing integrated marketing channels-Kirit Kene
Designing & managing integrated marketing channels-Kirit KeneDesigning & managing integrated marketing channels-Kirit Kene
Designing & managing integrated marketing channels-Kirit KeneKiritKene
 
The negotiable-instruments-act-1881 (2)
The negotiable-instruments-act-1881 (2)The negotiable-instruments-act-1881 (2)
The negotiable-instruments-act-1881 (2)KiritKene
 
Right to information act
Right to information actRight to information act
Right to information actKiritKene
 
Job Evaluation
Job Evaluation Job Evaluation
Job Evaluation KiritKene
 
BCG Matrix & SWOT Analysis
BCG Matrix & SWOT AnalysisBCG Matrix & SWOT Analysis
BCG Matrix & SWOT AnalysisKiritKene
 
Evolution of management
Evolution of managementEvolution of management
Evolution of managementKiritKene
 
Fighter Fish
Fighter FishFighter Fish
Fighter FishKiritKene
 
Managing and Managers
Managing and ManagersManaging and Managers
Managing and ManagersKiritKene
 

More from KiritKene (19)

CASA Presentation
CASA PresentationCASA Presentation
CASA Presentation
 
Bailment & pledge
Bailment & pledgeBailment & pledge
Bailment & pledge
 
Delhi Milk Scheme
Delhi Milk SchemeDelhi Milk Scheme
Delhi Milk Scheme
 
Analysis of Casa Ratio of IDBI Bank, Sitabuldi Branch Nagpur
Analysis of Casa Ratio of IDBI Bank, Sitabuldi Branch NagpurAnalysis of Casa Ratio of IDBI Bank, Sitabuldi Branch Nagpur
Analysis of Casa Ratio of IDBI Bank, Sitabuldi Branch Nagpur
 
Transfer of goods
Transfer of goodsTransfer of goods
Transfer of goods
 
Interview
InterviewInterview
Interview
 
Present status & future prospects in marine aquaculture
Present status & future prospects in marine aquaculturePresent status & future prospects in marine aquaculture
Present status & future prospects in marine aquaculture
 
Present Status, Export potential and Challenges of Fisheries Industry in India
Present Status, Export potential and Challenges of Fisheries Industry in IndiaPresent Status, Export potential and Challenges of Fisheries Industry in India
Present Status, Export potential and Challenges of Fisheries Industry in India
 
The blue revolution.pptx
The blue revolution.pptxThe blue revolution.pptx
The blue revolution.pptx
 
Identifying market segments & targets
Identifying market segments & targetsIdentifying market segments & targets
Identifying market segments & targets
 
Designing & managing integrated marketing channels-Kirit Kene
Designing & managing integrated marketing channels-Kirit KeneDesigning & managing integrated marketing channels-Kirit Kene
Designing & managing integrated marketing channels-Kirit Kene
 
The negotiable-instruments-act-1881 (2)
The negotiable-instruments-act-1881 (2)The negotiable-instruments-act-1881 (2)
The negotiable-instruments-act-1881 (2)
 
Right to information act
Right to information actRight to information act
Right to information act
 
Job Evaluation
Job Evaluation Job Evaluation
Job Evaluation
 
BCG Matrix & SWOT Analysis
BCG Matrix & SWOT AnalysisBCG Matrix & SWOT Analysis
BCG Matrix & SWOT Analysis
 
Leadership
LeadershipLeadership
Leadership
 
Evolution of management
Evolution of managementEvolution of management
Evolution of management
 
Fighter Fish
Fighter FishFighter Fish
Fighter Fish
 
Managing and Managers
Managing and ManagersManaging and Managers
Managing and Managers
 

Recently uploaded

MISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMA
MISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMAMISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMA
MISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMA
DK PAGEANT
 
Digital Marketing Training In Bangalore
Digital  Marketing Training In BangaloreDigital  Marketing Training In Bangalore
Digital Marketing Training In Bangalore
nidm599
 
Exploring Career Paths in Cybersecurity for Technical Communicators
Exploring Career Paths in Cybersecurity for Technical CommunicatorsExploring Career Paths in Cybersecurity for Technical Communicators
Exploring Career Paths in Cybersecurity for Technical Communicators
Ben Woelk, CISSP, CPTC
 
一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理
一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理
一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理
taqyed
 
一比一原版(QU毕业证)皇后大学毕业证如何办理
一比一原版(QU毕业证)皇后大学毕业证如何办理一比一原版(QU毕业证)皇后大学毕业证如何办理
一比一原版(QU毕业证)皇后大学毕业证如何办理
yuhofha
 
Personal Brand Exploration Comedy Jxnelle.
Personal Brand Exploration Comedy Jxnelle.Personal Brand Exploration Comedy Jxnelle.
Personal Brand Exploration Comedy Jxnelle.
alexthomas971
 
Brand Identity For A Sportscaster Project and Portfolio I
Brand Identity For A Sportscaster Project and Portfolio IBrand Identity For A Sportscaster Project and Portfolio I
Brand Identity For A Sportscaster Project and Portfolio I
thomasaolson2000
 
RECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdf
RECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdfRECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdf
RECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdf
AlessandroMartins454470
 
Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...
Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...
Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...
dsnow9802
 
Full Sail_Morales_Michael_SMM_2024-05.pptx
Full Sail_Morales_Michael_SMM_2024-05.pptxFull Sail_Morales_Michael_SMM_2024-05.pptx
Full Sail_Morales_Michael_SMM_2024-05.pptx
mmorales2173
 
DOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdf
DOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdfDOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdf
DOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdf
Pushpendra Kumar
 
How to Master LinkedIn for Career and Business
How to Master LinkedIn for Career and BusinessHow to Master LinkedIn for Career and Business
How to Master LinkedIn for Career and Business
ideatoipo
 
一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理
一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理
一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理
yuhofha
 
labb123456789123456789123456789123456789
labb123456789123456789123456789123456789labb123456789123456789123456789123456789
labb123456789123456789123456789123456789
Ghh
 
Resumes, Cover Letters, and Applying Online
Resumes, Cover Letters, and Applying OnlineResumes, Cover Letters, and Applying Online
Resumes, Cover Letters, and Applying Online
Bruce Bennett
 
0624.speakingengagementsandteaching-01.pdf
0624.speakingengagementsandteaching-01.pdf0624.speakingengagementsandteaching-01.pdf
0624.speakingengagementsandteaching-01.pdf
Thomas GIRARD BDes
 
一比一原版(YU毕业证)约克大学毕业证如何办理
一比一原版(YU毕业证)约克大学毕业证如何办理一比一原版(YU毕业证)约克大学毕业证如何办理
一比一原版(YU毕业证)约克大学毕业证如何办理
yuhofha
 
lab.123456789123456789123456789123456789
lab.123456789123456789123456789123456789lab.123456789123456789123456789123456789
lab.123456789123456789123456789123456789
Ghh
 
How Mentoring Elevates Your PM Career | PMI Silver Spring Chapter
How Mentoring Elevates Your PM Career | PMI Silver Spring ChapterHow Mentoring Elevates Your PM Career | PMI Silver Spring Chapter
How Mentoring Elevates Your PM Career | PMI Silver Spring Chapter
Hector Del Castillo, CPM, CPMM
 
New Explore Careers and College Majors 2024
New Explore Careers and College Majors 2024New Explore Careers and College Majors 2024
New Explore Careers and College Majors 2024
Dr. Mary Askew
 

Recently uploaded (20)

MISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMA
MISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMAMISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMA
MISS TEEN GONDA 2024 - WINNER ABHA VISHWAKARMA
 
Digital Marketing Training In Bangalore
Digital  Marketing Training In BangaloreDigital  Marketing Training In Bangalore
Digital Marketing Training In Bangalore
 
Exploring Career Paths in Cybersecurity for Technical Communicators
Exploring Career Paths in Cybersecurity for Technical CommunicatorsExploring Career Paths in Cybersecurity for Technical Communicators
Exploring Career Paths in Cybersecurity for Technical Communicators
 
一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理
一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理
一比一原版(U-Barcelona毕业证)巴塞罗那大学毕业证成绩单如何办理
 
一比一原版(QU毕业证)皇后大学毕业证如何办理
一比一原版(QU毕业证)皇后大学毕业证如何办理一比一原版(QU毕业证)皇后大学毕业证如何办理
一比一原版(QU毕业证)皇后大学毕业证如何办理
 
Personal Brand Exploration Comedy Jxnelle.
Personal Brand Exploration Comedy Jxnelle.Personal Brand Exploration Comedy Jxnelle.
Personal Brand Exploration Comedy Jxnelle.
 
Brand Identity For A Sportscaster Project and Portfolio I
Brand Identity For A Sportscaster Project and Portfolio IBrand Identity For A Sportscaster Project and Portfolio I
Brand Identity For A Sportscaster Project and Portfolio I
 
RECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdf
RECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdfRECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdf
RECOGNITION AWARD 13 - TO ALESSANDRO MARTINS.pdf
 
Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...
Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...
Jill Pizzola's Tenure as Senior Talent Acquisition Partner at THOMSON REUTERS...
 
Full Sail_Morales_Michael_SMM_2024-05.pptx
Full Sail_Morales_Michael_SMM_2024-05.pptxFull Sail_Morales_Michael_SMM_2024-05.pptx
Full Sail_Morales_Michael_SMM_2024-05.pptx
 
DOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdf
DOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdfDOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdf
DOC-20240602-WA0001..pdf DOC-20240602-WA0001..pdf
 
How to Master LinkedIn for Career and Business
How to Master LinkedIn for Career and BusinessHow to Master LinkedIn for Career and Business
How to Master LinkedIn for Career and Business
 
一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理
一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理
一比一原版(TMU毕业证)多伦多都会大学毕业证如何办理
 
labb123456789123456789123456789123456789
labb123456789123456789123456789123456789labb123456789123456789123456789123456789
labb123456789123456789123456789123456789
 
Resumes, Cover Letters, and Applying Online
Resumes, Cover Letters, and Applying OnlineResumes, Cover Letters, and Applying Online
Resumes, Cover Letters, and Applying Online
 
0624.speakingengagementsandteaching-01.pdf
0624.speakingengagementsandteaching-01.pdf0624.speakingengagementsandteaching-01.pdf
0624.speakingengagementsandteaching-01.pdf
 
一比一原版(YU毕业证)约克大学毕业证如何办理
一比一原版(YU毕业证)约克大学毕业证如何办理一比一原版(YU毕业证)约克大学毕业证如何办理
一比一原版(YU毕业证)约克大学毕业证如何办理
 
lab.123456789123456789123456789123456789
lab.123456789123456789123456789123456789lab.123456789123456789123456789123456789
lab.123456789123456789123456789123456789
 
How Mentoring Elevates Your PM Career | PMI Silver Spring Chapter
How Mentoring Elevates Your PM Career | PMI Silver Spring ChapterHow Mentoring Elevates Your PM Career | PMI Silver Spring Chapter
How Mentoring Elevates Your PM Career | PMI Silver Spring Chapter
 
New Explore Careers and College Majors 2024
New Explore Careers and College Majors 2024New Explore Careers and College Majors 2024
New Explore Careers and College Majors 2024
 

Agricultural Equipment Industry

  • 2. 3/23/2014 2 Objectives: •To present the overview of Farm Machinery Industry with the focus on Tractor Industry in India. •To analyze the prevailing trends in the Tractor Industry. •To analyze the Growth drivers of the Industry.
  • 3. • Agricultural Machinery industry plays an important role in the Indian economy as the agriculture sector still contributes majorly to the country’s GDP. •Share of the sector in overall GDP is declining. However, the sector remains significant as it employs more than 50 percent of the country’s population. •The agricultural equipment sector is a key sector that contributes to agricultural growth and productivity.3/23/2014 3 12 13 14 15 16 17 2007-08 2008-09 2009-10 2010-11 Share of Agriculture sector in India’s GDP (%) GDP %
  • 4. 0 20 40 60 80 100 120 140 2005-06 2006-07 2007-08 2010-09 2009-10 2013-14 $66Bn $69Bn $72Bn $79Bn $99.2Bn $124Bn E Overall World agriculture equipment market is likely to grow at a rate of 4.5% and expected to reach about $124 Bn in 2014. Indian Agriculture equipment market contributes around 10% of global equipment market and is sized at $10 Bn Over the last few years Indian agricultural equipment market has been widely exposed to international trade. Global majors like John Deere , New Holland & Same Deutz have already made an entry in Indian market , whereas Indian players are looking for alliances with foreign partners overseas. Worldwide Agriculture Equipment Market (2006-2014),USD billion 3/23/2014 4
  • 5. Chronology of Farm Mechanization in India Pre-Green Revolution Era(1947- 1965) Green Revolution Era(1965-1975) Post-Green Revolution Era (1975 onwards) 1. Farming by traditional methods 2. Low productivity (0.58 t/ha/yr) 3. Increase in production was attributed to increase in cultivated area 4. Farm power availability was about 0.27 kW/ha 5. Share of animal power sources was 98 to 88% 1. High yielding variety ,fertilizer , chemical inputs 2. Productivity increased (1.14 t/ha/yr) 3. Need for timeliness in farm operations realized 4. Introduction of improved farm machinery 5. Farm power availability was about 0.47 kW/ha 6. Share of animal power sources decreased from 88% in 1965 to 62% in 1975 1. Use of scientific methods in cultivation of crops 2. Raise in the productivity level 2.14 t/ha/yr 3. Increase in the availability of farm power to 1.2 kW/ha 4. Reduction in the share of animal power from 62% in 1975 to 24% in 1997 5. More implement/equipment and machinery put to use for all the farm operations 3/23/2014 5
  • 6. 1. Tractors 2. Levellers 3. Ploughs 4. Dozers 5. Scrapers 1. Seed Drills 2. Seed cum fertilizer Drill 3. Zero till drills 4. Transplanter 1. Shovel /Plough 2. Harrow 3. Tiller 4. Sprayer 5. Duster 1. Harvester 2. Thresher 3. Digger 4. Reaper 5. Sheller 6. Sickle/ Dao 1. Seed extractor 2. Dehusker 3. Huller/ Dehuller 4. Cleaner 5. Grader 6. Mill 7. Dryer Land development, tillage, seed bed preparation Sowing and planting Weeding, inter cultivation, plant protection Harvesting and threshing Post harvest and agro processing India’s agricultural equipment industry has a diverse product portfolio : 3/23/2014 6
  • 7. Technology Advancement over the years……. Tractor drawn mould board plough Tractor mounted Disc Harrow Tractor mounted Seed drill Animal drawn mould board plough Blade Harrow Dibbling Stick 3/23/2014 7
  • 10. There is greater stress on mechanization of agriculture There has been a sustained increase in the adoption of mechanization in an attempt to ensure greater return on investment (RoI) and sustainability of agriculture. Use of power for agriculture(KW/Ha) Source of power – percentage share over 4 decades Ag worker Animal Tractor Power tiller Diesel Engine Electric Motor 50 40 30 20 10 0 Mechanisation primarily driven by increased use of tractors, which is replacing manual and animal labour. 3/23/2014 10
  • 13. Tractor Industry in India Overview • Introduction • Historical Background Market Information • Evolution of Market • Current Scenario & Trends • Market Growth Rate • Growth Drivers Market Players & Situation Analysis • Industry at a glance • Market size • Major Players and their share Conclusion 3/23/2014 13
  • 14. Tractor Industry in India 3/23/2014 14
  • 15. History of Evolution 1868 – Introduction of Farm tractors with steam engine. Most popular steam tractor was the Garrett4CD. In 1907 - Henry Ford produced first gasoline powered tractor “automotive plow”. Later , an Irish engineer named Harry Ferguson’s designed a hydraulic system for carrying implements. 3/23/2014 15
  • 16. Market Information • Evolution of Market • Current Scenario & Trends • Market Growth Rate • Growth Drivers
  • 17. Inception Phase (1945 to 1965) Development Phase(1980 to 1992) Regulatory Phase (1965 to 1980) Liberalization Phase(1992 to 2002) 3/23/2014 17 Growth Phase(2002 onwards)
  • 18. Industry Tractor Industry- Sales Performance 3/23/2014 18 Source : CMIE Database , ICRA Estimates Trend in Yearly Tractor Sales Volume ( Domestic + Export)
  • 19. 3/23/2014 19 Industry Tractor Industry- Sales Performance Trend in Monthly Tractor Sales Volumes (Domestic + Export) Source : CMIE Database , ICRA Estimates
  • 20. Indian Tractor Industry-Region-wise Performance 3/23/2014 20 Source : CMIE Database , ICRA Estimates •Shift in Spotlight to Under-penetrated Markets
  • 21. 3/23/2014 21 Indian Tractor Industry-Region-wise Performance Source : CMIE Database , ICRA Estimates
  • 22. Indian Tractor Industry- HP-wise Performance 3/23/2014 22 •Sales to witness polarization towards high & low powered segments Source : CMIE Database , ICRA Estimates
  • 23. Tractor Industry in India 3/23/2014 23 •Exports increase with addition of new destinations Trend in Tractor Exports from India Source : CMIE Database , ICRA Estimates
  • 24. 3/23/2014 24 Tractor Industry in India-Competitive Landscape Source : CMIE Database , ICRA Estimates
  • 26. Indian Tractor Industry- Growth Drivers 3/23/2014 26 Lower level of Tractor penetration –scope for further improvement Source: World Bank , Emkay Reseach
  • 27. Tractor Industry in India 3/23/2014 27 Government support for agriculture and rural development: Indian Tractor Industry- Growth Drivers Trend in spend on Agriculture by GOI Source : CMIE Database , ICRA Estimates
  • 28. 3/23/2014 28 Indian Tractor Industry- Growth Drivers Improved Credit Environment 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2007 2008 2009 2010 2011 60,270 78,381 103,875 130,830 157,698 2,140 5,560 8,556 13,343 15,029 Private Banks(INR Cr) PSB(INR Cr)
  • 29. Tractor Industry in India 3/23/2014 29 Indian Tractor Industry- Growth Drivers Scarcity of farm labour : Alternate employment opportunities following urban migration and other Government-run schemes such as the National Rural Employment Guarantee Act (NREGA) have necessitated greater farm mechanisation. MGNREGA - rising employment and wages
  • 30. Tractor Industry in India 3/23/2014 30 Indian Tractor Industry- Growth Drivers Increasing non-agricultural applications: Increasing use of tractors for haulage in infrastructure and construction projects
  • 31. Tractor Industry in India 3/23/2014 31 Indian Tractor Industry- Growth Drivers Strong replacement demand : Roughly 40% of domestic demand is from the replacement market. The average life-cycle of a tractor has reduced to ~8-9 years from ~11-12 years. Export Sales Addition of new export destinations and increased offerings by domestic manufacturers in the higher HP segment has spurred export growth in FY11 and 9mFY12. Monsoons among the factors supporting tractor industry growth
  • 32. Market Players & Situation Analysis • Industry at a glance • Market size • Major Players and their share
  • 33. Tractor Industry in India 3/23/2014 33 •The Indian tractor industry is relatively young but the largest tractor industry in the world (accounting for 30% of Global production). •Industry characterized as medium HP Tractor Industry because of the fragmented land holding in India. •Since last decade industry had been growing (Y-o-Y)@ more than 15%. •In last two years Industry is growing (Y-o-Y) @ 28% & 24% in FY10 and FY11 respectively. •Market size of the industry has reached to 5.5 lac units in FY11, with industry growing at a robust pace in the past two years.
  • 34. Tractor Industry in India - Major Players 3/23/2014 34
  • 35. Tractor Industry in India 3/23/2014 35 Share of Major Players M & M 40% TAFE 23% Escorts 10% ITL 9% John Deere 9% New Holland 6% Others 3% Share (%) Indian Tractor industry has 13 national and few regional participants. The market share is however, concentrated amongst the top five manufacturers, accounting for over 90% of total volumes.
  • 36. Tractor Industry in India 3/23/2014 36 M & M TAFE Escorts ITL John Deere New Holland 22 17 22 21 44 40 Y-o-Y Growth(%)
  • 37. 3/23/2014 37 Domestic & Foreign Collaborations of Tractor Manufacturers Price List of Different Categories Tractors
  • 38. Tractor Industry in India 3/23/2014 38 REFERENCES •www.icra.in •www.cmie.com •www.ibef.in •www.zinnov.com •http://agricoop.nic.in •www.ficci.com •www.emkayglobal.com