VST Tillers Tractors, Hosur is betting big on farm mechanisation and subsidy on mini tractors to improve its business prospects in FY15.
“We have set up a new manufacturing plant on 14.6 acres of land at Hosur in Tamil Nadu at an investment of Rs 70 crore to produce mini tractors. With our new 22 HP mini tractor, we want to compete with Japanese and Korean companies which have a captured a sizeable share of the Indian mini tractor market,” said B C S Iyengar, executive director, VST Tillers Tractors Ltd.
VST has two mini tractors with 18.5 HP and 22 HP in its portfolio and is also developing a 26 HP mini tractor which will be rolled out in the next two years , he said.
The mini tractor segment, consists of products with less than 30 HP and are mainly used in wide ranging applications in agriculture and plantation sectors. Other than VST, the mini tractor segment has products from Mahindra, Sonalika and Kubotu of Japan. The segment size is estimated at 30,000 units and growing at the rate of 15%.