New Delhi, October 8, 2013: Tractor manufacturer Escorts Ltd recently organised a ‘Tractor Retail Financers’ meet in New Delhi. Due to a sustained rise in minimum selling price, increase in crop yields, increased tractor usage in non-agricultural applications, higher participation of NBFCs and private banks along with increase in availability of agri-credit, the tractor industry experienced a CAGR of over 7 percent for the last 20 years.

The meet was an initiative from Escorts to make retail financing institutions of this growth and its reasons and ways of promoting financial services in the industry to maximise tractor penetration in the country. Stressing the need to achieve a rapid increase in tractor volumes for an inclusive growth in Indian agriculture, a detailed study was shared, highlighting the sectors which required more attention in terms of financial support.

Out of 82 million farming households in India, the majority are marginal and small farmers where currently the tractor penetration is minimal. This not only provides an opportunity for tractor companies but also to financing institutions as they can expect their revenues to grow at a CAGR of over 26 percent in the next three years.

S Sridhar, CEO, Escorts Agri Machinery, said: “The tractor industry will become No. 1 in terms of value in the next 10 years. It is the correct time today to sit together and chalk out ways and methods to reach out to those people who want to grow but have no means. We have to reach out to them with these financing solutions to let them be a part of the agricultural growth. We at Escorts see a tremendous potential for fruitful partnerships with the financing sector to realise the agri growth dream in country.”

The Escorts Group is an engineering organisation operating in high growth sectors of agri machinery, material handling and construction equipment, railway equipment and auto components.

SHOBHA MATHUR