The shortage of labour in India, in northern states like Punjab and Haryana, has opened up opportunities for the multinationals especially in the harvesting sector.
The multinationals are betting big on these two states and in order to have a bigger share of the market, the companies are launching new products to suit the Indian conditions and expanding capacities.
While German multinational CLAAS has recently expanded its harvester capacity, New Holland Fiat India, a subsidiary of CNH Global and part of Fiat Industrial is planning to set up a harvester unit in southern India. Earlier, John Deere’s set up the first combine harvester factory in India in Punjab recently.
The company has earmarked $30 million to be invested in phases in its combine harvester factory and further depending upon the demand, the optimum capacity of the harvester factory would be 5,000 self propelled harvesters per annum, which would be achieved in phases.
Also, considering Punjab as the largest market for combine harvester in India, CLAAS India Pvt Ltd., the market leader in the Indian self propelled combine harvester industry and a wholly owned subsidiary of the German multinational CLAAS, launched two new products, the Crop Tiger 40 and Crop Tiger 40 Terra Trac at Agro Tech in Chandigarh this year.
Crop Tiger 40 has been developed for the multi crop harvesting requirements of states like Maharashtra; Madhya Pradesh; Uttar Pradesh; Bihar; Haryana and Punjab. While Crop Tiger 40 Terra Trac with its latest features is an upgraded version of Crop Tiger 30 Terra Trac, the most successful and largest selling self propelled combine harvester in India. Both the products have been designed and developed in India for its farms and conditions.
Speaking to Business Standard, Class India Ltd, member of board, Pradeep Malik stated, “In order to meet the demand, we have just increased our Morinda(Punjab) plant capacity from 1,500 units to 2,000 units per annum.”
With the commencement of operations by the multinationals, agricultural experts say the farmer would have access to world-class technology and at the same time it would give tough competition to the home grown companies.
Although the exact demand of harvester from India could not be ascertained as it is an unorganised sector, and no such survey has been done, but according to the estimates there is an annual demand for 4,500 harvesters including self propelled combine harvester in the country. As far as Punjab is concerned, and according to the potential linked plan prepared by the National Bank for Agriculture and Rural Developemnt (NABARD), there is a credit requirement of about 900 combine harvesters in 2012-13.
The contract has been put on hold and further payments have been stopped
Says these steps will sustain higher GDP growth and address some of the constraints on the country's sovereign credit profile