CHENNAI: Tractor and Farm Equipment Company (TAFE), the country’s second largest tractor maker by volumes will target a capital investment of Rs 250 crores in the current financial year to increase its installed capacity by 50,000 tractor units at two of its manufacturing locations in India, said Mallika Srinivasan Chairman and CEO of the company.
The additional capacity is planned at its facilities in Bhopal, Madhya Pradesh which makes the company’s ‘Eicher’ brand of tractors and Doddaballapur, Karnataka which makes its TAFE brand of tractors. The company said its capacity utilisation across three plants (including another tractor making plant in Madurai) currently stands at 110% and its current capacity across these plants stands at 1, 58,000 tractors.
“Overall we are quite upbeat. Our factories are running at full capacities. Our capacity expansion programme is underway and one phase will happen by March and another one by September next year,” said Srinivasan. She added that the company expects to clock-in higher growth compared to the industry in FY 18-19.
AFE has facilities in Tamil Nadu, Rajasthan, Himachal Pradesh, Turkey and China.The tractor industry is expected to register a growth of 10-12% in the current financial year at around 7, 85,000 – 7, 95,000 units of tractors, the highest thus far in the domestic market. In the last financial year, a record 7, 11,478 tractors were manufactured domestically.
Speaking on the company’s export growth, she said “Certainly we don’t like that some of our stronger markets are not doing as well but otherwise our new products are well accepted. Growth this year should be faster than industry. ”