The company has put in an investment of Rs 200 crore to manufacture the new tractor at its new facility at Ranjangaon near Pune. Escorts has a tie-up with up with Carraro SpA of Italy for transmission systems and axles apart from a marketing tie-up with Long Agribusiness LCC of the US for a push in the export markets.

The tractors, which will roll out for test marketing by end December, will have special features like synchronised gear box, high capacity hydraulics, dual clutch facilities, etc. The 60hp tractor would carry a price tag of Rs 4,50,000 and 70hp at Rs 5,25,000, company sources said.

Commercial production will, however, start only after six months of the test marketing phase after which the company plans to sell 600 to 700tractors annually. The new launche will mark Escort's foray into the higher segment of the market, presently dominated by New Holland and Tafe. These tractors will cater to the demands of large farmers, earth work, lease farming, deep ploughing and also take care of replacement market, the sources explained.

Mandhya Pradesh, Punjab, Haryana and UP are the markets with huge potential considering farmers in these states have huge holdings. Escorts, which presently holds little over 20 per cent, hopes to cash in on the market growth in the tractor industry, coupled with its latest entrant - Powertrac - which has been receiving very good response since its launch six months back.