TAFE export focus to centre around Samrat

Published on 28 September, 2015 By Khetigaadi Team for Tafe

TAFE export focus to centre around Samrat

Tractors and Farm Equipment (TAFE), flagship of the Chennai-based Rs 2,500-crore Amalgamations group, is planning a fresh export focus around the new Samrat platform.

Speaking to ET, TAFE director Mallika Srinivasan said: "Anything among 10% to 25% of total sales in 2-3 years is what we're looking at through exports.

The export aim will rotate around the newly introduced 44 horsepower (HP) Samrat. "Samrat is a new & fresh platform and the challenge is to create all products on the platform at balance with worldwide markets," Srinivasan said. At the same time the plans for the present year is to introduced two or three models from Samrat in the 35HP to 50HP range, the aim "would be to take the whole range from 25 HP to 90 HP, and build global quality products which would have extensive export potential,l," Srinivasan said.

"The approaching of the complete series is around 5000 units a year." Given the complexion of Indian demand, the company will focus on the domestic market with products in the 60 horsepower (HP) and below category. "All products beyond that range would be completely for abroad," Srinivasan said.

Until the whole series on the new platform is rolled out, TAFE will focus on the 60HP Gajraj and the Samrat for overseas markets. Specific design changes for export markets like Europe are currently being approved on the Samrat.

"The Samrat cab will help out us get into Europe market which is more sophisticated souks," Srinivasan said. At present the company export approximately 1000 units to the US, Bangladesh, Sri Lanka & parts of Africa. TAFE's export concentration is understandable given the amount pressures in the local market. Annual sales dropped 17 per cent to 1.98 lakh units in 2001-2002 contrast to 2.38 lakh units in 2000-2001. TAFE's share was 28,759 units or 14%.

Miserable farming markets and large scale store throwing away by the big players has squeezed retail sale of tractors. Definitely industry estimates hook the catalog position as high as 150 days contrast to 30 days for passenger cars.

Published by: Khetigaadi Team

Tractor slump makes Tafe scour new avenues

Published on 28 September, 2015 By Khetigaadi Team for Tafe

Tractor slump makes Tafe scour new avenues

Even as Tractors and Farm Equipment, the closely held flagship of the Amalgamations group, faced a tough ground in its core business of tractor, it has required to boost other businesses like engineering plastics, power source units and vehicle dealership & parts sales through supplementary, TAFE Access.


During the year ended March 31, 2003, when tractor industry quantity fell by 25percent, Tafe had controlled its sales fall to 16percent by pursuing strategic actions. It sold 22,708 tractors next to 27,957 in the last year. Turnover from the business dropped to Rs 600.86 crore (Rs 691.13 crore).


With better show by other businesses, Tafe stemmed a sharp fall income and reported an overall turnover of Rs 736.83 crore. Interest price abridged to Rs 14.38 crore .Net profits declined to Rs 20.92 crore. On a paid-up capital of Rs 8 crore, Tafe had a net worth of Rs 406.12 crore with Rs 398.12 crore in reserves as on March 31, 2003. It had an investment portfolio of Rs 53.23 crore (Rs 51.91 crore).


The engineering plastics division (Tafe-EPD) with facilities near Chennai and in Karnataka reported a 40% jump in turnover to Rs 75.87 crore (Rs 54.03 crore). This is a big jump from Rs 19.4 crore in 1997-98 and Rs 28.50 crore in 1998-99. The division is adding new injection moulding machines this year to scale up capacity and the range of products.


By investing in technology and processes, Tafe EPD has combined its place at the leading border of the engineering plastic industry. It has built an impressive customer profile and the list includes GM India, Toyota Kirloskar, WeP Peripherals, Wipro GE Medical Systems, GE BEL, GE Medical Systems, Thomson Consumer Electronics, Matsushita Air-Conditioning, Exide, TVS Motor, etc.


Tafe's power source division has also substantially increased output of lead acid batteries, and its turnover rose to Rs 39.98 crore (Rs 29.40 crore). In 1997-98, it was Rs 17.53 crore and in the next year, it was Rs 23.68 crore. Last year, spare parts sales improved to Rs 18.12 crore (Rs 15.33 crore).


Last year, Tafe invested an additional Rs 1.5 crore in the subsidiary, Tafe Access as share capital advance over and above the initial capital of Rs 3 crore. TAL's turnover spurted by 45.45% to Rs 135.12 crore (Rs 92.90 crore). It reported a net profit of Rs 1.13 crore (Rs 1.04 crore). It had a turnover of a mere Rs 27.78 crore in 1998-99.
The passenger vehicle division alone (selling cars of Telco, Hyundai and Skoda) reported record sales of Rs 117.84 crore. Besides, it had pushed sales of hydraulic pumps, instruments and other parts.


Last year, TAL secured major orders from Ashok Leyland for supplying dash board instruments for its plants at Ennore and Hosur. It also hopes to have a tie-up with a leading two wheeler manufacturer this year.
In 1998-99, Tafe had a turnover of Rs 1,026.92 crore (Rs 1,038.36 crore in 1997-98) with a record net profit of Rs 72.27 crore. Since then, its fortunes have been affected by the weak and poor show of the Indian farm sector and recession in the tractor market.

Published by: Khetigaadi Team

Tafe begins financial year on brisk note

Published on 28 September, 2015 By Khetigaadi Team for Tafe

Tafe begins financial year on brisk note

 Tractor and Farm Equipment (Tafe) has started this financial year on a fast note. It has bucked the industry style and improved sales and marketplace share in the first quarter ending July 31, '02. It has also made a big dent into Uttar Pradesh (UP) market by leveling up its performance.
Despite the monsoons not being as expected, this year, Tafe plans to sell 30,000 tractors as in the last year. In the first quarter, the company had pushed sales to 7,273 tractors, up by 8.65% over the similar quarter in the previous financial year.
Likewise, Tafe had increased its market share by 4% during the time to climb to the number two position in the industry. It is said that Tafe, which is conventionally strong in Rajasthan and Gujarat, has further improved volumes with its superior performance in Uttar Pradesh (India's largest tractor market) with a 15% market share. This is a substantial growth compared to previous years.
Tafe director, Mallika Srinivasan said the considerable investment in technology and the organisation recasting, in the last three years is regarding to pay off.
"In spite of the recessionary financial system, the rural market needs to be offered new products and new technology as the key differentiator. In line with this, we have launched the Tafe Samrat in the 45 HP category and Tafe Garjaj in the 60 HP category in the past 4 months. Both models have been received well in the states where they have been launched and are soon to be extended to other areas too," she said.
Tafe's long-term plans include renewed thrust into the overseas market with a target export of 10,000 tractors in the next five years. It has already initiated aggressive efforts to tap the export markets for its products. It has envisaged a turnover of Rs 2,000 crore by '06 with exports accounting for 10 per cent.

Published by: Khetigaadi Team

Tafe clocks best-ever net increase at Rs 54.7 cr

Published on 28 September, 2015 By Khetigaadi Team for Tafe

Tafe clocks best-ever net increase at Rs 54.7 cr

The closely held Tractors and Farm Equipment , flagship of the Amalgamations Group, posted the best-ever performance in 2004-2005 with net profit more than doubling (123%) to Rs 54.7 crore from Rs Rs 24.5 crore in the previous year. Net sales spurted by 56 percent to Rs 1,092.2 crore (Rs 699.7 crore).
The other income also doubled to Rs 26.7 crore ( Rs 14 crore). On a paid up assets of Rs 8 crore, Simpson & Company holds 76% and the US partner Agco Corp 24%. Last year, Tafe further shored up its preserve and extra to Rs 469.1 crore (Rs 419 crore). Investment portfolio rose to Rs 63.5 crore (Rs 58.1 crore).
The rewarding year lifted Tafe's total sales including excise duty by 42.6% to Rs 1,146.8 crore (Rs 803.8 crore) Of this, it boosted its core business, tractor to Rs 921.2 crore (Rs 632.9 crore). The other divisions also did well. Income from spare parts and attachments rose to
Rs 54.9 crore (Rs 30.5 crore), engineering plastic components Rs 88.9 crore (Rs 88.7 crore) and power source units Rs 80.9 crore (Rs 51.3 crore).
During '04-05, tractor sales witnessed a robust growth of 36%, surpassing the industry growth of 30%. Exports from tractor and components also went up by 83% to Rs 92.3 crore aided by the outsourcing tie up with Agco.
Last year's impressive show came on top of the company bouncing back in '03-04 reversing the slack performance of the previous year caused mainly by the fall in the sale of tractors. Tafe clocked a 17% rise in net profit at Rs 24.5 crore during the year and net sales improved by 9.4% to Rs 699.7 crore.

Published by: Khetigaadi Team

Tafe to be in 2nd slot after buying Eicher's units

Published on 28 September, 2015 By Khetigaadi Team for Tafe

Tafe to be in 2nd slot after buying Eicher's units

Move of Tractors & Farm Equipment, the flagship firm of the Chennai-based Amalgamations group, to buy rival Eicher's tractor and engine industry, will get it closer to the No 1 slot in the tractor market. According to analysts, Eicher's takeover is a win-win for both parties -extra for Tafe than Eicher.
This takeover gives Tafe access to markets crosswise the state in comparison with its current status as being a primarily southern player. Meanwhile, Eicher will be able to get rid of businesses in which it was droping market share.
Tafe director Mallika Srinivasan, "The takeover of Eicher provides us geological diversification."
Eicher is a strong sub-35 HP tractor player with a capacity of around 30,000 units, while Tafe operates in the mid range of 35-45 HP and has a capacity of 70,000 units.
The acquisiton of Eicher's tractor & engine section will allow Tafe to overtake Escorts and Punjab Tractors and occupy the second position, moving closer to M&M. M&M currently accounts for 26% of the market, Tafe 7%.
According to industry sources, Tafe’s association with Massey Ferguson, now part of the Atlanta-based AGCO, could also be also another reason for the takeover. Says an analyst, "AGCO, through Massey Ferguson (MF), wishes to increase its exposure in the Indian tractor market."
Tafe, which has a strategic sourcing alliance with AGCO, is supplying components, CKD and sub-assemblies to its world-wide manufacturing operations. AGCO Corporation, with estimated revenues of $4.5bn in '04, is one of the world's leading manufacturers of agricultural equipment and machinery. It has expanded its global presence by acquiring brands like Massey Ferguson, Fendt and Valtra.
In Tafe's Rs 8-crore paid-up capital, AGCO holds 24%. Tafe had reserves and surplus of Rs 419 crore as on March 31, '04. It had net sales of Rs 713.7 crore and reported a net profit of more than Rs 24.5 crore in '04.
In India the northern market accounts for 55% of the tractors sold locally. Like the rest of Motown, tractor marketers depend heavily on demand from the North. In fact, states like UP and Punjab account for the largest chunk of national sales with UP's share standing at 21.3%, more than a fifth, in the April-December '04 period.
The combined tally, say tractor industry sources, is 55% of total tractor sales. The top-sellers in these states are Escorts, Eicher, Punjab Tractors and Sonalika, although souk leader M&M does have a huge footprint in all these markets in the top slots.
Getting the lion's share of the Indian tractor market is not something to be sneezed at. India is the major tractor marketplace in the globe, though after 1999 it has been dogged by an inventory glut that has slowed down growth to negative levels. By '03, the fall in demand lopped off 40% of the peak '00 demand. However, offtake has shown positive growth in '04 and is likely to be so in '05

Published by: Khetigaadi Team

TAFE posts consolidated revenues of Rs 8,020 crore in FY 12

Published on 28 September, 2015 By Khetigaadi Team for Tafe

TAFE posts consolidated revenues of Rs 8,020 crore in FY 12

Thrashing the industry trend, world's third leading tractor manufacturer, Tractors and Farm Equipment Ltd (TAFE), today, reported 30.4% growth from Rs 6,149 crore in 2010-11 to Rs 8,020 crore in consolidated revenues for the financial year ended March 31, 2012.

On the whole tractor sales increased sharply by 26.6 per cent at 1, 48,112 tractors, as next to a predictable industry sale of 6, 07,213 tractors and an industry growth of 11.4 per cent for the year. While industry standard growth in November - March was 0.66%, TAFE clocked an average growth of 28.58 per cent during the similar time, a company declaration said here.

Announcing these results, Mallika Srinivasan, Chairman & CEO, TAFE, said, "We are glad that our focus on product development and expansion of our product portfolio have paid off. Our investments in product and method technologies, enhancements to our product mix supported by extensive field effort helped us meet the demands of our discriminating consumers."

On the export front, TAFE continues to be India's largest exporter of tractors with 20,396 totally build tractors exported to 73 countries, a growth of 28.2 per cent over the previous year, apart from kits and collective exported through the year.

Published by: Khetigaadi Team

Tafe unveils tractor model, plans more

Published on 28 September, 2015 By Khetigaadi Team for Tafe

Tafe unveils tractor model, plans more

Tractor major, tractors and farm equipment (TAFE), flagship of rs 2500 crore amalgamations group, is saying bravado to lethargic market situation. It has lined up swing of new models developed out of intense design and development in the last 3 years.

Coming first in the series, it revealed in chennai on thursday an elegantly styled new paradigm tractor samrat TAFE 4410. Build to worldwide standards it is slated for commercial launch in the first quarter of 2002 followed with two more models in 6 to 8 months.

Speaking to media persons, tafe chairman and md, mr a sivasailam said "The 44 horsepower (HP) Samrat is the conclusion of design and development efforts costing over rs 70 crore. It is a totally indigenous tractor developed with extensive involvement of customers and the best talents worldwide. We picked up 60 out of 350 vendors to meet the challenge".

Published by: Khetigaadi Team

TAFE net doubles to Rs 685 cr

Published on 28 September, 2015 By Khetigaadi Team for Tafe

TAFE net doubles to Rs 685 cr

Tractors and Farm Equipment , the world's 3rd major tractor maker, more than doubled consolidated pretax profit to Rs 685 crore in 2009-2010 as sales in the home market surged and exports boomed.
The Chennai-based, Amalgamations group firm posted a 25 percent expansion in revenue for the year to Rs 4,747 crore, vice chairman Mallika Srinivasan told in an exclusive interview (EI). "We have set a benchmark for the tractor industry," she added, referring to the operational performance. The expansion was obsessed by a strong increase in TAFE's volumes which nearly doubled to 1, 00,000 tractors. TAFE is a closely detained firm and do not bring out results.
It is the flagship of the Amalgamations group. Ms Srinivasan said that the firm's projection in the present year is seems good. "The overall monsoon is good. We have seen good growth this year determined by communications development and farm mechanisation but inflation is a worrying factor for tractor financing," she added.

Published by: Khetigaadi Team

Canara Bank signs MoU with TAFE

Published on 28 September, 2015 By Khetigaadi Team for Tafe

Canara Bank signs MoU with TAFE

Canara Bank has signed a contract with Tractor and Farm Equipment Manufacturers Ltd (TAFE) to provide financial solutions to farmers wishing for of buying Massey Ferguson (MF) tractors and other farm implements.
As per the terms of the MoU, Canara Bank would now turn into the favored supporter for TAFE tractors in Uttar Pradesh (UP), Karnataka, Tamil Nadu and Kerala, a bank release said.
Under the plan, Canara Bank would give economic solution to farmers buying TAFE tractors with enhanced features like condensed margin and attractive price tag. The tenure of loan would be five to nine years. TAFE will assist in credit delivery with its vast dealer network, it said.

Published by: Khetigaadi Team

Tafe plans to set up Turkey unit

Published on 28 September, 2015 By Khetigaadi Team for Tafe

Tafe plans to set up Turkey unit

Tractors and Farm Equipment , part of Amalgamations group, has announced the setting up of a greenfield plant at the highly developed Manisa industrial region in Turkey to produce 15,000 tractors a year in the sub 100 HP range, reports Our agency in Chennai.
An investment of $15-$20 million is envisaged for the venture being set up with internal accruals through a 100percent owned abroad division in the nation. The new plant is expected to roll out the first tractors in the first quarter of 2009. It is expected to contribute about Rs 450 crore a year to Tafe's topline.
In a statement on Monday, Tafe chairman & MD, A Sivasailam, said, "Turkey is a strategically important market for us. Tafe has, over the last few years, spent considerably in developing tractors in the sub-100 HP range for a variety of applications for discriminating consumers in both the home and abroad markets."
Tafe director Mallika Srinivasan sai, "The tractor market in Turkey is of implication to us in that its work is well within our experience and manufacturing range. Over 2000 TAFE tractors are already in process in Turkey giving us a good understanding of the market."
Tafe is betting on the existing good market for tractors in the country, estimated to be 45000 to 50,000 tractors per year. It was dominated by two players, one MNC and the other a local player. The local company, which was producing 12,000 tractors, had been wound up.
Tafe is India's second largest tractor manufacturer with an annual production of 80, 000 tractors and close to one million customers. During 2007-08, gross turnover of TAFE and its subsidiaries came to Rs 3488 crore and PBT Rs 311.53 crore. TAFE increase exports of tractors and parts by 49.5% to Rs 298.15 crore (through US partner, Agco corporation and on its own) from Rs 199.37 crore in 2006-07.
Manisa is a well-developed industrial centre with necessary infrastructure in place. It has over 150 companies including MNCs representing diverse sectors similar to automobile, engineering, paper, cement & non-ferrous metals. Tafe plans to leverage on the local supplier base and raw materials for the operations of its new plant.
Further, he said, "Tractor customers in Turkey are progressive farmers who expect the uppermost levels of presentation, dependability and fuel effectiveness and we are confident our products will meet these expectations. We believe that this is the appropriate instant to enter with a greenfield investment into Turkey."

Published by: Khetigaadi Team







Get Tractor Price

*
*

Home

Price

Tractors in india

Tractors

Compare

Review