M&M gets aggressive on farm equipment

In view of the emerging huge business avenues in the sector, Mahindra and Mahindra, (M&M) a market leader in tractor and farm equipment, has set itself an aggressive goal for both domestic and overseas business as it charts the next phase of growth. As part of the plan, the company envisages drawing half of its revenue in the segment from overseas operations over the next two to three years, up from the current 37 per cent, even as it aspires to increase its share in the domestic tractor market form the current 43-50%. While the overseas strategy will be driven by efforts to increase revenue in the Americas, Japan and Eastern Europe, a volume ramp of the recently launched tractor platforms will be the key to meeting the aspiration to control half the domestic market. To be sure, the farm equipment sector contributes four out of every ten rupees earned in revenue terms and six out of ten rupees in profit terms for the parent company.