However, the company would continue to expand its presence in the Indian tractor industry, New Holland Tractors (India) Pvt Ltd--a wholly-owned subsidiary of New Holland NV--director Jonathan Walsh, said here.

"We are not looking at the construction industry in India. The construction arm of New Holland is a joint venture between Fiat and Hitachi and this tie-up is not extended to India. Besides, Hitachi already has a venture here with the Tata group and so there is no likelihood of the construction arm coming to India," Walsh said.

"Moreover, we have no immediate plans to foray into the construction sector in India. But, we cannot talk about the future, particularly after the recent tie-up with Case Corporation," he added.

New Holland and Case have joined hands to form a $12 billion global equipment company in a cash merger transactionrecently. Under the agreement, a new company would be created with Fiat, New Holland's parent company, retaining a 71 per cent controlling interest.

However, he stated that the immediate fall-out of the New Holland-Case venture on the Indian market could not be established. "It is an international tie-up and is very difficult to say at this stage as to what implication would it have on India. The tie-up itself is in a very early stage presently," Walsh said.

New Holland's earth-moving and construction equipment business offers different product lines -- hydraulic excavators, crawler loaders, bulldozers, graders and scrapers.

Meanwhile, New Holland is also planning to expand its presence in the tractor segment in India by introducing new models in the lower-end segment of the market.

The company had introduced a top-end 70hp model in the market last year and has followed it up with a 50hp version recently. Eventually, the company aims to manufacture and market Ford tractors in the 35-50-70hp range inIndia.

Future plans for the New Holland India envisage manufacture of other farm machinery like combined harvesters, balers, mowers, backhoe. "All this would form part of the company's approved investment plan of $75 million for India."

The company, Walsh said, was also working towards getting its global vendors to India. "We have already helped a number of our global vendors set up shop in India in collaboration with local partners. For our 35hp tractor, a lot more would be coming into the country."

This would help the company achieve a 90 per cent local content level in its tractors over the next one year from the present level of 60 per cent.

It may be recalled that the company had recently hiked prices of its 70hp farm unit by Rs 14,000 pursuant to the increase in input costs on account of the 3 per cent additional excise duty levied in the Union budget 1999-2000. The post-budget price of its 70hp tractor is Rs 5.77 lakh.

Besides, the prices of its 50hp model has also been hiked by Rs9,000.

The company could not absorb the increase in price which had resulted due to the rationalisation in excise duty announced by finance minister Yashwant Sinha. "We had to pass it on to the consumers."