Mahindra & Mahindra’s joint venture company with the Gujarat government, Mahindra Gujarat Tractors has been renamed as Gromax Agri Equipment. The naming revamp is part of its strategy to compete on a standalone basis. Gromax Agri Equipment is a 60:40 JV between Mahindra & Mahindra (M&M) and the Gujarat government.
Earlier today Gromax Agri Equipment (GAE) launched its all new tractor brand, Trakstar in the 30-50hp category. The Trakstar range to be available in five power ctaegories – (31, 36, 40, 45, 50hp) will compete in the highly-competitive market spanning almost 80 percent of the tractor industry.
As per the company, the product will have its own manufacturing, business processes and practices and will have a separate dealership network that will cater to the small or marginal farmers with its affordable combo package of tractor and equipment. The Trakstar range will focus more on the domestic market.
Commenting on the revamp and launch, Rajesh Jejurikar, president, Farm Equipment Sector, Mahindra & Mahindra, said, “Gromax will be an important element of our journey of transformation towards a higher penetration of farm mechanisation, enabling farmers to double their income. The Traxstar range of tractors will compete in 80 percent of the industry.”
The company’s manufacturing plant in Vadodara has an installed production capacity of 3,500 units in one shift, sold around 1,500 tractors in FY 2016-17 with a market share of 0.5 percent.
GAE’s foray into the competitive market will see it competing not only with local regional players but also its parent company Mahindra & Mahindra that also has product offerings in similar range, Jejurikar explained that the company would focus on a different set of customers that are price sensitive. The company will soon announce the launch price (will differ state to state) but it is expected to be cheaper by around five to 10 percent compared to products by established brands.
Farmers can purchase Traxstar through finance options from Mahindra Finance and other leading financers with the company mentioning it would have “lower EMI and down-payment for easy acquisition” along with an option for leasing out the vehicle through TRRINGO – offering assured rental income of 150 hours.
The Trakstar range will be launched in two phases with the first phase covering Uttar Pradesh, Bihar, Jharkhand, Orissa and West Bengal in September 2017. The second phase will cover Gujarat, Maharashtra, and other states by January, 2018.
The JV plans to invest a total of Rs 150 crore in the next three to five years, including Rs 40 crore that has already been invested.