Agricultural Equipment Market in India 2010

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Agricultural Equipments Market - India
August 2010
2
Executive Summary
Indian agricultural equipment (AE) market
accounted for a of the global AE market in --
Market
The industry is dominated by the unorganized
sector with a market share of over b
Indias major exports of farm equipments are to
Country A, Country B, Country C and Country D
Challenges
Drivers
Improved availability of creditFocusing on
productivity throughmodern farm equipments
Fragmentation of land
High cost of equipments and cheapimports
Drivers Challenges
Lower penetration of farm equipmentsEmergence of
contract farming
Migration of rural labor to urban areas
Initiatives in agricultural sector Initiatives
in ancillary sectorsPE investments
Initiatives Investments
The market is dominated by a few domestic
playersMost large players have tractors as a
part of their product portfolioCompany 1 is the
largest player and has the largest sales and
distribution network
Competition
Major Players
Company1 Company 2Company 3 Company 4
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AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010
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Introduction
Market Overview
Drivers Challenges
Government Initiatives
Monetary
Others
PE Investments
Competition
Key Developments
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AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010
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Agricultural equipments are becoming extremely
essential
tools for growth in agriculture
Market Overview
Market Size and Growth
Indian agricultural equipment (AE)
market accounted for a of the global AE market
in --
USD bn
10
r
Tractor and tiller are the two major
equipments manufactured by the organized sector
in India
Q
8
P
6
Other major agricultural equipments and
machineriesmanufactured in India include
harvesters, plant
4
protection equipment, drip irrigation and
micro-sprinkler
2
0
Indias major exports of farm equipments are
to Country A, Country B, Country C and Country D
20--
20--e
Market Segmentation
AE in India is driven by rising credit
availability from
the government as well as low penetration
levelsof tractors
Equipment AEquipment BEquipment CEquipment
DOthers
Cost constraints and fragmentation of land
are acting as major barriers to growth
X1
The industry is dominated by the
unorganized sector with a market share of over b

X5
Few major players exist in the market
X3
X2
X4
Source
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AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010
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Drivers Challenges - Summary
Drivers
Improved availability of credit
Challenges
Focusing on productivity throughmodern farm
equipments
Fragmentation of land
Lower penetration of farmequipments
High cost of equipments and cheapimports
Emergence of contract farming
Migration of rural labor to urban areas
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AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010
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Company 1 dominates the tractor sales in the
market
Overview
Market Share - Tractors (20 --)
The market is dominated by a few major players
Most large players have tractors as a part of
their product portfolio
Others
F
Company 5
Company 1 is the largest player and has
thelargest sales and distribution network and is
the
E
market leader in western India Company 4
Company 1
D A
Company 3 has an edge over competitors inproduct
development and technological
expertise
C
Southern India is dominated by TAFE Company 3
Due to cyclical nature of tractors business,
most companies in the segment are widening their
BCompany 2
portfolios
Company 1 - It has established several
businessesincluding power generator and engines,
crop harvesterand cutters, agriculture services
and seedsCompany 4 - It increased its
agriculture equipmentportfolio by adding t new
products in 20-- and plans toadd another s new
products
Source
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AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010
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Players in the Market (1/10)
Company Snapshot Company 1
Corporate Information
Financial Highlights
Total Revenue
Established 19--
INR bn
Net Profit INR mn
Headquarters City A
30
400
Company Type Listed
200
20
Products Equipment A, equipment B
0
-200
Key People Mr. X
10
-400
0
-600
2006 2007
2008 2009
Business Highlights
Tractor Sales
Exports mainly to Africa and Europe and is
looking at aiming at p-q of revenue from
exports over the next
500000
B
two to three years
400000
The company manufactures tractors for both farm
and non-farm use under the brand names Brand 1
and
300000
A3
200000
A1 A2
Brand 2
100000
0
20-- 20-- 20--
Source
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AGRICULTURAL EQUIPMENTS MARKET IN INDIA 2010
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