Mahindra Gujarat Tractors renamed Gromax

Mahindra Gujarat Tractors (MGT), owned by Mahindra and Mahindra (M&M) and Gujarat government, plans to invest around Rs 150 crore over a period of next 3-5 years.

The joint venture (JV) between M&M and the state government has also changed its name to Gromax Agri Equipment and launched a new brand of tractors 'Trakstar'.

M&M, the world's largest tractor manufacturer, holds 60% stake in the venture while the rest is owned by the Gujarat government.

The newly-launched brand will focus on value seeking farmers with smaller land holdings and will be present across 30-50 HP category, the company officials said.

These tractors will be launched in a phased manner across the key markets in the country, which together cover about 80% of the tractor industry. The Trakstar products are expected to cost around 5-7% less than the mainstream tractors, the officials said.

Rajesh Jejurikar, president - farm equipment sector, M&M, said, "The Trakstar range of tractors will compete in 80% of the industry." The JV had sold around 1,500 tractors last year.

When asked why the company wants to disassociate itself from M&M brand of the parent company, Jejurikar said that they want Gromax to grown independently and would not like to see cannibalisation of M&M brand.

"A similar strategy has worked well earlier with Swaraj brand of tractors."

According to several industry projections, the tractor industry in India is expected to grow around 10-12% during the ongoing financial year.