Agricultural Equipments Market – India

August 2010
Executive Summary

Indian agricultural equipment (AE) market accounted for a % of the global AE market in ‘--
Market
The industry is dominated by the unorganized sector with a market share of over b %

India’s major exports of farm equipments are to Country A, Country B, Country C and Country D

Drivers Challenges

Improved availability of credit
Fragmentation of land

Drivers &
Challenges
modern farm equipments

PLE

Focusing on productivity through

Lower penetration of farm equipments

High cost of equipments and cheap
imports

Initiatives &
M

Emergence of contract farming

A

Migration of rural labor to urban areas

S

Initiatives in agricultural sector

Initiatives in ancillary sectors
Investments
PE investments

The market is dominated by a few domestic players

Most large players have tractors as a part of their product portfolio

Company 1 is the largest player and has the largest sales and distribution network
Competition Major Players
Company1 Company 2
Company 3 Company 4

AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010 2

•Introduction
•Market Overview
•Drivers & Challenges
•Government Initiatives

Monetary

Others
•PE Investments
•Competition
•Key Developments

AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010 3

 Agricultural equipments are becoming extremely essential
tools for growth in agriculture
Market Overview Market Size and Growth
• Indian agricultural equipment (AE) market USD bn
accounted for a % of the global AE market in ’-- 10 r%
• Tractor and tiller are the two major equipments Q
8
manufactured by the organized sector in India P

E

Other major agricultural equipments and machineries 6

PL
manufactured in India include harvesters, plant
protection equipment, drip irrigation and micro-
sprinkler
4
2

M
• India’s major exports of farm equipments are to

A
Country A, Country B, Country C and Country D

S
• AE in India is driven by rising credit availability from
the government as well as low penetration levels
0

Market Segmentation
20-- 20--e

of tractors Equipment A
• Cost constraints and fragmentation of land are Equipment B
acting as major barriers to growth X1% Equipment C
• The industry is dominated by the unorganized Equipment D
sector with a market share of over b % Others
X5%
• Few major players exist in the market X3%
X2%
X4%

Source:

AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010 4

Drivers & Challenges – Summary

Drivers

Improved availability of credit

Challenges
Focusing on productivity through
modern farm equipments Fragmentation of land

Lower penetration of farm High cost of equipments and cheap

equipments imports

Emergence of contract farming

Migration of rural labor to urban areas

AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010 5

 Company 1 dominates the tractor sales in the market

Overview Market Share – Tractors (20 --)

• The market is dominated by a few major players
• Most large players have tractors as a part of their Others
product portfolio F%
Company 5

Company 1 is the largest player and has the

E
E%

L
largest sales and distribution network and is the

P
market leader in western India Company 4 Company 1
D% A%

Company 3 has an edge over competitors in
product development and technological
expertise

Southern India is dominated by TAFE
SAM Company 3
C%

• Due to cyclical nature of tractors business, most

companies in the segment are widening their
portfolios B%

Company 1 – It has established several businesses Company 2

including power generator and engines, crop harvester
and cutters, agriculture services and seeds

Company 4 - It increased its agriculture equipment
portfolio by adding t new products in 20-- and plans to
add another s new products

Source:

AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010 6

 Players in the Market (1/10)

Company Snapshot: Company 1

Corporate Information Financial Highlights
Established 19-- Total Revenue
INR bn Net Profit INR mn
Headquarters City A

E
30 400
Company Type Listed

L
200

P
20
Products Equipment A, equipment B 0
-200

M
Key People Mr. X 10
-400

Business Highlights SA
• Exports mainly to Africa and Europe and is looking at
0
2006

Tractor Sales
2007 2008 2009
-600

aiming at p-q% of revenue from exports over the next 500000

B%
two to three years 400000
• The company manufactures tractors for both farm and 300000
non-farm use under the brand names: Brand 1 and A3
200000 A1 A2
Brand 2
100000
0
20-- 20-- 20--
Source:

AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010 7

 Thank you for the attention
The Agricultural Equipments - India report is a special feature from Research on India.
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