CNH plans to invest up to USD 50 million in India in 2024; launch 105HP tractor in May
Under the programme investment, Mittal said the company is working on a specific tractor model of above 45 HP with a new engine for higher fuel efficiency.
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Italian-American off-road construction and agriculture firm CNH is planning to invest up to USD 50 million in the farm machinery segment in India this year and launch a 105HP tractor in May, according to a top CNH India official. CNH, which produces and sells farm machinery and equipment under the New Holland brand, will focus on the compact range of tractors of below 30-40 horsepower (HP), besides targeting to sell 1,000 baler machines (used for managing stubble) this year. Currently, CNH India has a four per cent market share in the tractor business in India and has a considerable presence in the 45-50 HP range of tractors.
Speaking to PTI, CNH India and SAARC Country Manager and Managing Director Narinder Mittal said there is a huge potential in India's agriculture sector, and the company intends to double its market share to 8 per cent in the next four years. "We plan to invest about USD 40-50 million in the current calendar year in the agriculture segment, including the programme investment," he added.
Out of which, USD 25-30 million will be invested in the tractor business alone, he noted. Under the programme investment, Mittal said the company is working on a specific tractor model of above 45 HP with a new engine for higher fuel efficiency.
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The cash flow for this will begin this year and the new model is likely to be launched by the end of 2025, he added. On a product launch, Mittal said a bigger tractor of 105 HP is lined up for the launch in May this year. This tractor is used for bailing and ridge application. At present, the company is importing bigger tractors of more than 100 HP to meet the growing demand for baler and ridge machines in the country, he said. Stating that balers help in managing stubble, Mittal said there is a growing awareness about the use of such machines in the country, and consequently, the company's sales of balers have gone up significantly in 2023.
CNH India sold about 840 small square balers in 2023 against 450 in the previous year. The company also sold 50 big and round balers in 2023, the company official said. "We expect that we should be touching 1,000 balers this year," he said, adding the company is selling balers in Punjab, Haryana, Uttar Pradesh, and parts of Madhya Pradesh. Balers compress agricultural residue into manageable and transportable bales. Small square balers that cost around RS 11-12 lakh per unit can be used with existing tractors, while the big/round balers that cost around Rs 2 crore per set require above 100HP tractors for operation.
The company manufactures small balers in Pune but imports some components that it intends to localise by the middle of this year. The company imports bigger baler. In the agriculture segment, CNH India has a tractor manufacturing plant with an annual production capacity of 60,000 in Greater Noida, Uttar Pradesh, and another for harvesters in Pune, Maharashtra.
CNH has three legal entities in India, each focusing on agriculture and farm machinery, construction vehicles and financial services, with a staff strength of over 3,400. About 71 per cent of the total revenue comes from the tractors business. CNH India's total revenue stood at approximately USD 1 billion in 2023.
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