Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Charts & Analysis

M&M Farm Equipment Sales Contracts 20.5%, Domestic Sales Down 24%


M&M Farm Equipment Sales Contracts 20.5%, Domestic Sales Down 24%
M&M FES reported sales of 17,262 units in November, 2016 against 21,717 units during the same time last year resulting in a contraction of 20.5%.

  • Domestic Sales stood at 15,918 units against 20,819 units resulting in a contraction of 23.5%
  • Exports stood at 1,344 units against 898 units resulting in a growth of 21.7%

Commenting on the performance, Rajesh Jejurikar, President and Chief Executive – Farm Equipment and Two Wheeler Division said:

The tractor industry has witnessed the year’s first de-growth due to the shift in festive season and added effect of demonetization. We see the demonetization impact to be short term and expect continued growth against the backdrop of improved agriculture output which will boost tractor demand in the future.

M&M Farm Equipment has decided to tackle the demonetization issue head on with a plan to help its tractor and commercial vehicle customers along with its dealers and suppliers facing cash flow problems. For tractor customers, the crisis coincides with the Rabi season as sowing schedules lag behind. M&M is also asking its dealers to reach out to the farmers and check if any of their equipment needs to be fixed or if they need any assistance in buying seeds/fertilisers.
Dr. Pawan Goenka, Managing Director said:

We want to provide a helping hand to those affected in the current situation. From M&M’s point of view, this has more value than selling additional tractors or SUVs at this point in time. If they do not sell 10 tractors, the skies will not fall but they will fall for sure if the farmer misses the Rabi season.
The important job on hand for us is to alleviate the pain of customers who depend on our vehicles for their livelihood. We need to ensure that some of our suppliers do not shut down their plants for want of cash.
If Rabi sowing happens before December 15, things will be fine. Right now, we are not in a desperate situation and soil overall is in good condition thanks to the rains. Tilling followed by seeds and fertilisers becomes vital during the next three weeks.
Mahindra is a brand that has a strong connection with its customers and partners. There is a certain expectation from us and it is during times of crisis that people truly show their mettle.

M&M Farm Equipment business launched TRRINGO in Gujarat – to facilitate hiring of tractors and farm implements through its custom hiring center at Chiloda near Gandhinagar. This unique model will push farm mechanisation and bring in new market for M&M’s FES.
Mr. Arvind Kumar, CEO, TRRINGO said:

The farmer would make a call at our tollfree number and ask for a tractor. According to his requirements, appropriate services are provided through the nearest custom hiring centers. We are setting up custom hiring centers across the country. In Gujarat we plan to set up 16 such centers, each of which can cover about 5 kilometers of radius without making farmers wait longer.
We have already opened 70 such centers across the country and will have 165 of them by March 2017. In Gujarat we are planning to cover 8 districts at present with about 16 such centers. Each center will cater to about 100-120 villages. Each center will have 5 tractors and 15 implement. Also, we are encouraging unorganised tractor operators to come on our platform and get more assured business.

Love it or hate it, do leave us with your reviews in the comment section below!


Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial