The company also rolled out the 50 HP tractor at its manufacturing facility at Greater Noida in Uttar Pradesh here on Thursday.

The company has initiated a study to explore the feasibility for venturing into construction equipment. For this, New Holland has decided not to take the acquisition route, New Holland president and CEO worldwide, U Quadrino told newspersons here.

This, he said, is a part of the company's plans to bring all its business arms into the country. "We have already invested close to $50 million in India and would be bringing in an additional $25 million in the form of equity over the next one year."

The company had introduced a top-end 70 HP tractor last year.

"We are now moving towards the lower-end segment of the market and would introduce the 35 HP tractor next year," he said.

The company plans tomanufacture and market Ford tractors in the range of 35, 50 and 70 HP range in the country.

The Rs 3.74 lakh (excluding local taxes) 50 HP tractor will be available with a network of 25 dealers across Punjab, Haryana, Rajasthan, Uttar Pradesh, Gujarat, Tamil Nadu, Andhra Pradesh and other states.

This would be followed by the manufacture of other farm machinery and agricultural implements like combined harvesters, balers, mowers, backhoe and skid-steer loaders

On the construction business, Quadrino said, a feasibility study has been initiated and preliminary reports are very positive. "We are very positive of being a major player in the construction sector over the next two to three years," he said, adding that investments and project details would be formalised pursuant to the final decision.

The manufacturing facility is expected to close to 5,000 tractors during the current year and increase to 12,000 tractors in 2,000 and 35,000 in the fifth year of the company's operations, with over 90 percent indigenisation by next year.

Company officials stated that the 70 HP tractor will now cost Rs 14,000 more than the pre-budget price due to an increase in excise duty on tractors (above 1800cc) from 13 per cent to 16 per cent, announced in the budget.

The cost of the 50 HP tractor has also gone up by Rs 9,000 but consumers would not feel the price hike as the product has been launched after the budget.