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Global sales to account 50% of total farm equipment revenue in 3 yrs: M&M

Press Trust of India  |  New Delhi 

& (M&M) is revving up globalisation of its farm equipment sector, targeting 50 per cent of overall revenue of the vertical to come from international markets over the next three years, according to a

The company is focussing on three key markets --Americas, including the US, Canada, and Brazil; and to be the primary growth drivers.

It expects revenues from to touch USD 1 billion in the next three years, up from USD 600 million at present, while it is also aspiring for business in to touch USD 1 billion over a period of time as compared to USD 450 million currently.

Besides, the is also charting out strategy to re-enter in the implements segment after exiting from an earlier joint venture for tractors.

The farm equipment sector (FES) of the company had clocked a revenue of USD 3.4 billion in 2017-18.

"Currently, our global operations constitute 37 per cent of the revenues of Over the next three years, we hope to see this go up to 50 per cent," - Farm Equipment told in an interview.

He said the company has drawn up a globalisation strategy with a differentiated strategy for each of the three key regions -- Americas, and

In Americas, Jejurikar said the company has recently entered the above 80 hp (horse power) to 120 hp segment in US and catering to the income producing segment such as commercial operators, landscapers and hay management.

"Up until now in (US and Canada) we were only in the 80 hp and below segment catering to rural lifestylers, who are typically hobby farmers. We are number three in the segment," he said, adding still was not present in hardcore agri segment in where there is requirement for very big machines.

The other aspect of strategy in is to expand further in markets like and Brazil, where the company is a relatively new entrant.

"These are agricultural markets and we have been there only for last couple of years. We are competing in the agri space there," he said.

Stating that there is a lot of similarity, specially with and from agro-climatic point of view and the type of crops grown, Jejurikar said M&M's Indian products are suitable and accepted very well in these markets.

"The challenge for us is to create brand awareness and build distribution network. We are doing that by creating our own subsidiary Mexico and Mahindra Brazil," he said.

Overall in Americas, Jejurikar said, "We expect revenues to be USD 1 billion from USD 640 million over a period three years."

In Japan, he said, "We are at USD 450 million at present. Our aspiration is to reach USD 1 billion but there is no timeline set for it."

The company is number four player in and has a market share of around 6 per cent.

"We have two areas of priority in Japan. One is to improve our market share in the local market and second is to enhance exports from there using some of the other markets which come in as a part of the Mahindra network," Jejurikar said.

is focusing on global centre of excellence (CoE) for to create global access of harvesters and rice transplanters through Mahindra (MAM), he added.

"The intent would be to take to a global platform through the rice transplanters as well as rice harvesters thereby taking MAM beyond Japan," he added.

Currently, tractors are exported primarily to Mahindra USA, which get branded as Mahindra.

"We are also looking at exporting transplanters from Japan to other markets, including to We already have a walk-behind in and a ride-on should happen by the end of the calendar year and a harvester sometime next year," he added.

In Turkey, M&M's three subsidiaries Erkunt Traktor, Hisarlar and foundry Erkunt Sanayii account for around USD 240 million of revenue.

"While has an aspiration to be the number two in its market, up from four at present, Hisarlar will look at proving for the complete agri value chain," he said.

Being the fourth largest tractor market globally, presents a lot of opportunities, Jejurikar said, adding Hisarlar will be the CoE for farm implements.

When asked about plans for China, he said, "We are putting in place a strategy to return to the USD 25 billion farm equipment market in due course of time. We plan to venture on our own rather than look at a JV."

There is big potential for M&M to exploit opportunity in with rice transplanters and rice harvesters from Mitsubishi, he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, July 08 2018. 11:15 IST