M&M To Beat Slump With Genset Engines

Mumbai, Aug 25: | Updated: Aug 26 2002, 05:30am hrs
The continued slump in the domestic tractor industry has seen manufacturers look for alternative growth avenues. Mahindra & Mahindra (M&M), the countrys largest tractor manufacturer, has started selling engines for generator sets leveraging its business expertise in the tractor business.

The company is planning to sell engines in the 25-60 HP category and has also received the initial orders from various customers.

Company officials add that while the industry was not much organised due to the presence of a large number of unorganised players, M&M is planning to sell between 3,000-5,000 engines annually.

We will not only look at domestic demand but also explore this line of business as an international business opportunity, said M&M executive- director and president (farm equipment sector) KJ Davasia.

However, officials were not willing to put a value to the total business potential from the venture at this juncture.

Mr Davasia added that the M&M was also looking at selling spare components for generator sets. There are certain components generic for tractors which we can sell, he added.

The Indian tractor industry has been going through a major slump with a negative growth of 11 per cent during the last fiscal. Industry observers add that the current fiscal is expected to see a further degrowth of the industry. Moreover, the spectre of droughts in certain areas of the country has added to the manufacturers apprehensions.

In addition to this foray, M&M is also gearing up to introduce six new models during the current fiscal.

The company is introducing two models in the 25 HP category, which are more economical for holdage as well as marginal uses. These two models would be more value-based than the existing 25 HP model that the company has in the range of Rs 2-2.5 lakh.

The Arjun series would also be complete with the introduction of the 52 HP and the 40 HP tractors. The series already has the 45 HP and the 60 HP offering in the range.