(TAFE), world’s third largest tractor manufacturer by volumes, has signed an agreement with Japan-based ISEKI & Co, Ltd, to manufacture compact tractors in India.
The Japanese firm claims to be the third largest agricultural machinery manufacturer for tractors, planting and harvesting machinery, and engines.
Under this agreement, ISEKI will offer product technology to TAFE for the manufacture of these products for the Indian market.
The scope of the agreement will cover sourcing of components and assemblies through TAFE, building on the volume advantage that TAFE offers.
TAFE will offer ISEKI’s premium light utility compact tractors in the 35-54 hp range in India. These multi-utility lightweight tractors with advanced features can be used for puddling operations, orchard and plantations land preparation, tilling, inter-cultivation and spraying applications to name a few.
The tractors will be manufactured in TAFE’s Madurai plant and expected to roll out by 2020, said Mallika Srinivasan, Chairman and CEO, TAFE.
She added, “This agreement brings together ISEKI’s rich experience in the light utility compact tractor segment globally and TAFE’s strong position in the Indian market, along with its strong manufacturing capability and robust supply chain, to offer Indian customers an international product range that will meet their requirements in new, emerging applications through a unique value proposition.”
ISEKI’s products enjoy a strong market presence in Japan, South East Asia, Australia and USA, and, are reputed for their quality and technology. ISEKI also manufactures tractors for AGCO, with whom TAFE shares a 50-year-old association, the longest partnership in the tractor industry.
Kikuchi, Chairman of ISEKI, on signing this agreement said, “We will enter into the largest tractor market in the world, India and the Indian subcontinent with the greatest partner called TAFE. We’ll promote technical alliances with TAFE by this agreement and collaborate with each other as important partners not only for India but also for our global strategy in long-term. We believe our global strategy is founded by this cooperation with TAFE, and we hope we can contribute great relationship between three companies to promote global strategy together.”