Escorts targets 10 percent tractor market share in Tanzania

Escorts Ltd has launched its Farmtrac Heritage range of 60-75 hp tractors in Tanzania and is bullish of achieving a market share of 10 percent in 2015-16, up from 4.5 percent, with this latest product introduction.

With the new product, Escorts which has had a presence in this East African country hopes to further consolidate its growth. “We are now taking our presence in this market to a different level and providing the right tractor solutions to the farmers. The Heritage range is easy to operate, has classic looks, and is very fuel efficient,” Rajesh Kumar, VP, International Business, Escorts Agri Machinery told Autocar Professional.

The company also has tractors in the lower horsepower range but is launching the 60-75hp tractors to meet the requirements of the local market. At present, Escorts has 2,000 customers in Tanzania for its Farmtrac tractors. About 2-3 years ago, it has introduced higher horsepower tractors here but those were equipped with outsourced transmissions as well as other parts. The current Heritage range has been made entirely in India.

Escorts’ distributor in Tanzania has five outlets but Kumar says that these are not enough and the number is to be doubled by end-2015. The company will also strengthen its aftersales service and spare part availability in order to enhance ease of maintenance and provide more customer value.

Escorts launched its Farmtrac Heritage Series at Tanzania’s biggest agriculture show, East Africa Agri Business Exhibition 2015. It has received several enquiries from institutional and government visitors and received a number of bookings since its launch. To promote this tractor series, Escorts is holding a roadshow from January 31 to February 8, starting from Dar-Es-Salaam and ending in Hanang, a district about 700km away. During this show, the tractor will be taken to village clusters in the country’s interior.

Kumar says Escorts hopes to leverage the Tanzanian government’s focus on agriculture. About 10 players are present in this market and sell 2,500 tractors every year. “A number of Indian manufacturers are looking at Tanzania and out of the total tractor imports to Tanzania, 50 percent comes from India every year.” Escorts has a unit in Tanzania that can assemble 2,000 tractors in one go. According to Kumar, the company may consider setting up another assembly unit for its Heritage tractors if the volumes warrant it.

One of the many challenges of operating in Tanzania is availability of finance and customers have to depend on private finance and business partners for funding. And while buyers in South Africa are well educated, those in other African countries have to be educated on which products to buy.  

Meanwhile, Max Mhagama, sales manager, Noble Motors, and Escorts’ partner across several African countries, said, "We are very happy today in bringing the Farmtrac Heritage Series of tractors to Tanzania’s farmers. I am confident that these tractors with European style and comfort will enable our farmers to work more and earn more at ease.”  

Besides agricultural equipment, the Escorts Group is present in material handling and construction equipment, railway equipment and auto components.

Tractor exports from Escorts India were worth $9 million (Rs 56.8 crore) in 2013-14 and in the current fiscal it is expected to close at $ 30 million (Rs 189.5 crore). The company says its target for 2015-16 is to grow in a few select markets with a 10 percent market share target in all markets where it is present.