Tractors and Farm Equipment (TAFE), a leading tractor manufacturer by volumes and ISEKI & Co., Japan's major agricultural machinery manufacturer for tractors, planting and harvesting machinery, and engines, inked an agreement for the manufacture of compact tractors in India.
Under this agreement, ISEKI will offer product technology to TAFE for the manufacture of these products for the Indian market. The agreement will also cover sourcing of components/assemblies through TAFE, building on the volume advantage that TAFE offers. TAFE will offer ISEKI’s premium light utility compact tractors in the 35-54 hp range in India. These multi-utility lightweight tractors with advanced features can be used for puddling operations, orchard and plantations land preparation, tilling, inter-cultivation and spraying applications to name a few. The tractors will be manufactured in TAFE’s Madurai plant and expected to roll out by 2020.
Mallika Srinivasan, chairman and CEO – TAFE, said, “This agreement brings together ISEKI’s rich experience in the light utility compact tractor segment globally and TAFE’s strong position in the Indian market, along with its strong manufacturing capability and robust supply chain, to offer Indian customers an international product range that will meet their requirements in new, emerging applications through a unique value proposition.”
Kikuchi Akio, chairman of ISEKI, on signing this agreement said, “We will enter into the largest tractor market in the world, India and the Indian subcontinent with greatest partner called TAFE. We’ll promote technical alliances with TAFE by this agreement and collaborate with each other as important partners not only for India but also for our global strategy in long term. We believe our global strategy is founded by this cooperation with TAFE, and we hope we can contribute great relationship between three companies to promote global strategy together.”
ISEKI & Co was founded in 1926 in Matsuyama, Ehime. It is present in Japan, South East Asia, Australia and USA, and, are reputed for their quality and technology. ISEKI also manufactures tractors for AGCO, with whom TAFE shares a 50 year-old association, one of the longest partnerships in the tractor industry.
TAFE is said to be the second largest tractor manufacturers by volume in India. It reportedly has an annual sale of over 150,000 tractors in the country. TAFE is one of the leading exporters of tractors from India with a claimed turnover in excess of Rs 9,300 crore. TAFE manufactures a range of tractors in the sub 100 hp segment in both the air-cooled and water-cooled platforms, and markets them under its four brands - Massey Ferguson, TAFE, Eicher and the recently acquired Serbian tractor and agricultural equipment brand IMT – Industrija Mašina i Traktora. The company claims to have over 1000 strong distribution centres in the country.