Tractor segment market leader Mahindra & Mahindra today announced its entry into the agricultural equipment rental service with the launch of Trringo, a franchised-based rental service.
This start-up is a first of its kind model in the tractor rental business for those farmers who may not be able to afford their own tractor and farm equipments.
The dual business model Trringo, which will see an equity an investment of Rs 10 crore by M&M, will be initially launched in Maharashtra, Gujarat, Madhya Pradesh, Karnataka and Rajasthan.
The first model is one where the franchisee will invest in tractors and equipment to rent them out and set up a hub for operations. Trringo will use a proprietary digital platform as an enabler to process orders and pass them on to the nearest franchisee through location based mapping.
It supports easy accessibility and service through a dedicated App and a toll-free number. Franchisee could also tie-up with tractor owners in the vicinity enabling them to rent out equipment to farmers on a commission basis.
In the second business model, large farmers who own expensive, high-end equipment can rent out their assets thereby optimizing utilization based on seasonality, cutting across geographies.
Trringo would connect the asset owner to the user through the App. It will enable smaller farmers to access technology that can boost their yields and thereby overall farm prosperity.
Pawan Goenka, Executive Director, Mahindra & Mahindra, said,"The Trringo farm equipment rental business model will enable farmers to deploy mechanisation technology on a pay per use basis without investing in the asset."