Titagarh group merges arms for tractor biz foray.
KOLKATA: City-based Titagarh Group, one of the leading wagon manufacturers in the country, is foraying into tractor segment in a big way. It has already started trial production of tractors under Titagarh brand at its Rajasthan facility, which is under the group firm Cimmco Ltd.
Titagarh Agrico, the company through which the group is planning to launch the tractor business, with Cimmco Ltd. Currently, the tractor arm is a 98% subsidiary of the group holding firm Titagarh Wagons Ltd. The Cimmco board is likely to ratify the merger proposal on August 22.
According to the source, the group is launching four different types of tractors for which it has already got design sanction of design from the government. It is learnt that the merger is aimed at bringing more synergy between Cimmco and Titagarh Agrico. The Rs 2,000crore, Umesh Chowdhary-led Titagarh Group facilities in India, France and Italy. In India, the group has three units in West Bengal and one unit in Rajasthan.
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The group is planning to manufacture 300 tractors a month or 3,600 tractors per year, which it would ramp up gradually.
"There is a substantial investment plan for the business as well," added the source. The group is also planning to make inroads into the export market with the tractor. "Initially, it may export it to Nepal then it would look for other neighbouring countries," added the source. The company already has strong presence in Europe through the group firms in France and Europe.