Reviewing Mahindra’s Farm Equipment Performance of 2016!

Rajesh Jejurikar_Mahindra

The tractor industry has its own shares of ups and downs. In spite of that, there continues to be a very healthy CAGR! This year was rough for a lot of reasons such as delayed monsoon, strong El Nino effect and low Kharif sowing.

The market share of 2016 was 41% which was the highest in 4 years! This achievement was possible because of the launch of four new tractors under Mahindra and two new tractors under the Swaraj Brand. However, the highlight was definitely the launch of Mahindra Yuvo – a technically advanced tractor with 5 different horsepower variants; hence we catered to 70% of the tractor industry. The export business sector was highly affected by the economic crisis in countries like South Africa and Algeria. Hence, this year wasn’t a good year for tractor export.

However, Mahindra USA did very well and had a revenue growth of 41%. Currently, India is not a very big market for farm machinery. But, we expect the situation to change.

There is a huge global opportunity in the farm machinery market, and harvesters is a big part of that. We have two major acquisitions this year for Mahindra Tractors which will help us to grow in this space. First being Mitsubishi agricultural machinery, which we have already acquired. The second is Sampo Ronsenlew, which is in the process.

We are looking forward to next year for a revival and hopefully, a good monsoon.

Watch the full video to get all the insights on Mahindra Farm Equipment’s performance in FY16 from Rajesh Jejurikar!

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