Mahindra & Mahindra's (M&M) latest venture, Trringo -- a 'start-up' engaged in the business of tractor renting, is the result of some serious business strategy discussions within the company three years ago.

After two years of pilot-testing the company has formally announced its foray into the business through an entity which will be registered as a separate company where M&M will hold a major equity stake.

After establishing presence in the five states of Maharashtra, Gujarat, Karnataka, Rajasthan, Madhya Pradesh in the first phase, the plan is to expand nationwide. And as that expansion happens, M&M may also introduce Trringo in some overseas markets in a span of five years or so.

"We do think this will be very relevant in quite a few international markets. So, we would like to think how we can take this concept to overseas markets," Rajesh Jejurikar, President & Chief Executive, Farm Equipment & Two Wheelers, M&M, told Autocar Professional. Some of the countries where M&M sees potential for Trringo are Japan, China and our neighbouring countries. And emerging Africa, of course.  "Certainly African countries where affordability is an issue", he says. The priority for Jejurikar, however, is to prove the concept in the domestic market.

M&M sees big business opportunity in the new business, which is also aimed at simplifying the farmer's life. The domestic tractor hiring business, which is unorganised currently, is estimated to have a turnover of Rs. 15,000 crore annually. Tractor penetration in India is at around 35 percent today. With the growth of the tractor market, growth of farming implements is also expected to follow. " Tractor penetration will lead implement penetration," says Jejurikar. With the mechanisation of farming, agricultural productivity is also expected to improve significantly.