Lemken India Agro Equipment, the wholly-owned subsidiary of German manufacturer Lemken GmbH is expanding its reach into the agri-rich state and farmers for its agricultural equipments. The company is now involving farmers and seeking their feedback before bringing relevant equipments to India.
"Lemken plans to focus on key markets like Haryana, Punjab, Western Uttar Pradesh, Maharashtra and Southern India. We will be working closely with farmers to help them meet the growing demand and at the same time expose Indian farmers to more modern technologies and equipment. However non-availability of credit facility, price sensitivity, right subsidies and institutional support are barriers for implement manufacturers who want to introduce matching equipment and technology implements in India", says Arvind Kumar, MD & CEO, Lemken India.
The Lemken facility in Nagpur with 3,000 units per annum capacity has produced more than 1000 units of equipment till now. It intends to produce more than 2,000 units by 2015 for the domestic market/ globally and hopes to achieve an annual sales turnover of around Rs 100 crore in the next three -four years' time. The facility is functioning at 40 per cent capacity this year. Lemken also plans to export to countries in South-East Asia and Africa form Nagpur plant.
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Lemken recently ran a 85-day pilot project, 'Field Day Potato' in Punjab, wherein the entire value chain of the potato from soil preparation, plant protection and fertilization, planting and harvesting to potato processing industry was showcased by Indian and German partners. The company claims that the productivity has improved 15 per cent.
He added, "We see big growth potential in the years to come not only in India but other export countries around India including Africa. With the country's significant tractor population, the company sees huge potential for selling their ploughs, power harrows and tine cultivators in these markets. With the reduction of cultivated land becoming a serious problem, the need for producing more out of available land has fast forwarded the need for mechanization in a big way. This scenario provides a perfect opportunity for Lemken to introduce new products and technology in Indian markets, where openness to automation and modern equipment is the need of the hour."
Lemken has distribution network of 20 dealers in in Maharashtra, Punjab, Karnataka, Andhra Pradesh and Tamil Nadu . The Indian agro-equipment market is largely unorganised but estimated at Rs 3,000 crore annually. Lemken has recently launched two products Perlite 5 and tine cultivator - Achat 70 for pre-harvesting and soil bed solutions to focus on key markets like Maharashtra, Punjab, Haryana, Western Uttar Pradesh and Southern India.
