Mahindra and Mahindra (M&M), the largest manufacturer of farm equipment, is exploring the possibility of selective transfer of technology for the manufacture of tractors with capacity of over 60 horse power (HP). According to M&M executive vice-president Gautam Chakravarti, the company is exploring possibilities of selective technology transfer from an international player. He added that M&M has the technology to produce these high HP engines, but it would prefer to transfer or buy the technology for transmission from an international player. Sources said that the comapny is in talks with a Korean company from which it already sources tractors for selling in the United States.

The company, under its Horison III programme, has already developed tractors with 85 HP, expected to roll out by next year. M&M has also taken various measures to consolidate its postition in the market and increase its profitability.

Under the plan, the company will set up around seven ‘skid plants’ which will allow the company to save on octoroi and also transportation cost. The company has already set up a skid plant in Dharwar and another one will be erected in Hyderabad. The skid plants will assemble the tractors with the paraphernalia which M&M dose not manufacture on its own, like tyres and few other components. This, said company officials, will save the company a lot on account of octroi which will be levied on parts like tyres when it is brought to the Mumbai plant. M&M plans to have around seven such skid plants in India. M&M officials said the company will also shift a considerable part of its production to its satellite plant, at various locations in India. The company will also reduce its stock yards from around 24 to seven.

The company, to save on transportation cost, is exploring the possibility of combined movement of both farm and auto products.

M&M will also tighten its supply chain management and focus on indigenous product development, and cost reorganisation. It has received the ISO 14001 certification for its Kandivali farm equipment plant from RWTUV Germany.

ISO 14001 addresses environmental management practices to be adopted by the organisation to improve their environmental performance and protect the environment and nature for the future.