Escorts, Amul enter into JV to make tractors

Escorts will hold 40% in new company while Amul Group will own 60%

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Leading tractor manufacturer Escorts Limited has entered into a joint venture with Rajkot-based Amul Group for manufacturing 'Steeltrac' - a specialty tractor, a statement issued by Escorts Limited said here on Monday.

Escorts will hold 40 per cent in the new company and Amul Group the rest of the equity

Escorts had joined hands with Amul Industries in 2012 for development and distribution of Steeltrac, a highly successful speciality tractor.

Steeltrac, the statement said, is a specialised tractor which is complimentary to general purpose tractors and can efficiently facilitate operations like inter-weeding for farmers growing row-crops such as groundnut, cotton and sunflower. Steeltrac will mechanise local, short distance haulage in the country.

The market for specialised tractors has been growing tremendously and this strategic investment, according to the statement, will further enhance Escorts’ commitment towards bringing a wider range of products to farmers across the country.

Speaking on the alliance, Rajan Nanda, chairman and managing director, Escorts Limited, said, “The Escorts-Amul joint venture is an excellent strategic fit, presenting an opportunity to leverage the complementary strengths of our robust product portfolio. There has been an exponential growth in the specialised tractors market and Escorts is glad to be a part of this segment. The market has witnessed a phenomenal growth from zero to approximately twenty thousand tractor units within last four years."

He added, "Steeltrac extends the Escorts quality assurance to farmers in these niche segments and with the reach of distribution that Escorts has, we will expand and lead these segments in the times to come.”

Chandubhai Santoki, chairman, Amul Group, said, “Amul is known for providing world class quality products at unmatched cost. For manufacturing specialised-tractors, we have set up a modern production facility at Rajkot with a capacity to produce over 10,000 tractors per year. The Escorts-Amul partnership will go a long way in addressing the farmers with special needs.”