TAFE remits $65.01 million in US-based Agco Corporation

TAFE plans to expand its international footprints

Tractors and Farm Equipment Limited (TAFE), a Chennai based global tractor major, has remitted $65.01 million (around Rs 342.44 crore) in US-based $8.8 billion farm equipment major Agco Corporation. It may be noted TAFE has ongoing collaboration with Massey Ferguson, now owned by Agco Corporation for over 50 years.

While Reserve Bank of India (RBI's) Overseas Investment Division's data on outward FDI from India for the month of September 2012 showed that the company has invested $65.01 million as equity, TAFE's official spokesperson said “the money has been remitted and this is towards business relationship with Agco Corporation and to tap international opportunities”.

An e-mail sent to Agro Corporation was not replied, till the time this story was filed.

It may be noted, TAFE has an understanding with Agco Corp, a Georgia-based farm equipments maker, for distribution in the US, in certain markets in Africa, Turkey and others. Agco also holds 23 per cent stake in TAFE, which is headed by Mallika
Srinivasan, who is also on the Agco board since last year.

TAFE also said it is participating in development of Centurion family of tractors (50-125 hp) along with Agco Corporation and planning to expand its international footprints. These tractors will be made in India and then it will be shipped to the overseas market during the second calendar quarter of 2013, earlier the company officials said.

TAFE known for its design, styling, prototyping and manufacture of tractors, including an entire range of tractors for sale by Agco in the North American markets under the Massey Ferguson Brand. TAFE’s products are sold under the Massey Ferguson, Eicher and TAFE brands and its products are market leaders in several South Asian countries.

In 2011-12, TAFE sold 20,396 units across 73 countries, as the market softened, to balance it the company recently said it is planning to expand to new countries including parts of South America, Africa and in South Asia.

Last year export contributed around Rs 1200 crore to the overall company's turnover of around 8,021 crore and the company expects this per centage to continue.

Currently TAFE manufacture tractors from 24 HP to 100 HP in air cooled and water colled platforms.

For export market it is planning to introduce new products, which can go upto 105 HP. By end of the year it is planning to roll out the product for export market and also new agricultural implements, which will also be domestic markets.