TAFE Drives Into Progressive Agri Solutions' Landscape

It is quite a revolution that is taking place on the product front at Tractors and Farm Equipment Ltd., the privately held tractor major, helmed by Mallika Srinivasan. The game plan is to serve technically advanced global markets with products that are well suited to their requirements.

Sample this. TAFE has designed new-age products for the European market, considered to be a testbed for innovative agri-solutions. The company is betting big on electric and hydrogen-powered tractors for the market to serve the specific needs of progressive farmers with its compact, utilitarian and innovative tractors and smart agriculture solutions.

TAFE is among the top exporters of tractors from India, exporting to over 80 countries and having a strong presence in several countries, including 30 African nations. It holds leadership positions in countries like Tunisia, Zambia, Uganda, Morocco, Namibia, and Botswana in Africa, besides Balkan nations, and Sri Lanka, Bangladesh and Afghanistan in Asia.

TAFE's debut at Agritechnica—the world's leading trade fair for agricultural machinery—iin Germany in November last year was crucial in its effort to penetrate through the European landscape. TAFE, part of the Amalgamations Group from Chennai, one of India's largest light engineering conglomerates, has all it takes to make it big in the technologically advanced overseas agri-solution markets. Comprising 40 companies, the Amalgamations Group is involved in the design, development and manufacture of diesel engines, automobile components, light engineering goods, plantations and services.

According to the company, TAFE showcased its new-age product range, which featured electric compact tractors, advanced utility tractors with heating, ventilation and air-conditioning cabins, and next-gen modular smart-farming solutions. Its range of products and farming solutions have been designed on innovative technology platforms and aim to cater to the special requirements of European customers. The key highlight was the launch of its electric tractor and the display of the concept hydrogen tractor, demonstrating TAFE's capabilities in exploring alternate fuels and sustainable solutions.

On the domestic front, too, there is a silver lining for tractor makers like TAFE. After a decline of 4–5% in financial year 2024, domestic tractor volume will recover to clock a modest growth of 3–5% in fiscal 2025, driven by expectation of a normal monsoon supporting rural sentiment, higher farm income and good replacement demand, according to the latest Crisil study.

In January of this year, TAFE signed a memorandum of understanding with the Tamil Nadu government for an investment of Rs 500 crore. It proposes to expand its farm equipment division to produce an advanced range of farm equipment for a wide variety of crops, ideally suited for both Indian and international markets. In addition, TAFE has drawn up plans for investment to enhance its facility for the assembly and export of silent generators to various countries in the Middle East and Africa. It also plans to establish a design and development facility in Tamil Nadu.

TAFE's chairperson, Mallika Srinivasan, then said that Tamil Nadu is one of the most industrialised states, with an investor-friendly government, a rich and diverse talent pool and inherent strengths that are conducive to innovation.

TAFE, established in 1960, is one of the world's largest tractor manufacturers, producing over 2 lakh tractors annually in the less 100-hp range and being a leading exporter of tractors from India. The product portfolio for the international markets includes tractors ranging from 15 to 100 hp. With a turnover in excess of Rs 12,000 crore, TAFE manufactures tractors under four iconic brands: TAFE, Massey Ferguson, Eicher and IMT (Industrija Mašina i Traktora).

In 2005, TAFE acquired the tractors, engines and transmissions business of the legendary Eicher brand with German roots through a wholly owned subsidiary, Tafe Motors and Tractors Ltd. In addition to tractors, TAFE and its subsidiaries have diverse business interests in various sectors, including farm machinery, diesel engines and generators, engineering plastics, gears and transmission components, hydraulic pumps and cylinders, vehicle franchises and plantations. TAFE acquired the iconic Serbian tractor and agricultural equipment brand IMT in 2018. In 2022, it acquired Faurecia's Indian interior business. The company is a significant shareholder in Agco Corp.

TAFE's electric tractor is equipped with 20 kW of power, a highly efficient transmission, a low-noise powertrain and a powerful electric motor with a very high efficiency of around 90%. It has a fast-charge feature that is fully compatible with the European Combined Charging System—CCS2. One of the highlights of this tractor is its low maintenance cost. The electric tractor is ideal for use by municipalities, logistics and material handling businesses, besides agriculture.

The tough TAFE model comes with a 74-hp, three-cylinder engine that delivers remarkable power. Designed for optimal comfort and productivity, this tractor is equipped with a 12-speed synchromesh mechanical shuttle transmission and is Euro Stage V compliant. It is the perfect partner for progressive farmers as it can be paired with a variety of implements like seed drills, rotary tillers, sprayers, spreaders, loading wagons and trailers.

The TAFE compact tractor range blends bold aesthetics with versatility and is Euro Stage V compliant. These adaptable tractors are adept at both farming and industrial tasks, are marked by adjustable speeds and enhance operational effectiveness. Their affordability and low maintenance make them an appealing value proposition to hobby farmers and municipalities, besides agriculture. It is ideal for applications like the front loader and snow ploughing.

The writer is a veteran financial journalist based out of Chennai.

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