​Eye on contract farming, Swaraj plans new tractors

With Model Contract Farming and Services Act (MCFSA) expected to get Cabinet approval this month, Swaraj Tractors, a division of Mahindra & Mahindra (M&M) has launched a new platform for higher horsepower (60-75 HP) tractors. 

The company hopes with contract farming gaining prominence in the future, the average size of farm land would increase and create demand for better powered  tractors.

Swaraj Tractors executives said that the tractors based on the new platform will be introduced over a period of time, beginning with the launch of Swaraj 963FE on Wednesday. 

It will be initially available in Punjab, Andhra Pradesh, Telangana, Tamil Nadu and Chhattisgarh and will be rolled out pan-India by the end of 2018 in a phased manner. An investment of under Rs 100 crore has gone into the project.

“With the launch of the new platform, we expect to target large farmers and also hopefully gain from the contract farming, which is being talked by  the government,” said Viren Popli, chief operating officer, Swaraj Division.

Swaraj Tractors sells around 1,10,000 units annually and is growing at a CAGR of 13%. It expects to capture market share of 11-12% in the first year in higher HP category. The high HP category (upward of 60 HP) is at a nascent stage in India and sells around just 50,000 units annually.

Bigger HP

• The firm is hoping the average size of farm land would increase and create demand for better powered tractors