Mumbai: Case New Holland, or CNH, a leading tractor maker from Europe, aims to get into the mainstream market in India, readying itself to rival local players Mahindra & Mahindra, Escorts and TAFE. As part of its vision to double its market share here, CNH has started developing a range of tractors in the 25-40 hp category. These new series of tractors will allow CNH to offer an entry point to prospective tractor buyers into its brand and widen its range to bring in incremental buyers.
Raunak Varma, managing director, CNH Industrial India, told ET that for its growth locally, the company plans to invest about ₹1,000 crore across manufacturing and supplier capacity, new product development and financial services expansion. "By not participating in the core of the market, we are not doing justice to the organisation and shareholders. We are making a strategic shift to have a tailored portfolio for 25-50 horsepower range. We are not looking at a commoditised product, we will come out with an application-specific product," added Varma.
Having a presence in the country for over two decades now, CNH is already profitable with a turnover of over ₹6,500 crore. All of its investment for India will be self-funded, said Varma.
Apart from playing a larger global role, CNH is seeking to tap into the growing farm business.
The company had recently strengthened its offerings in the 45 and 49.5HP segments. With entry into the sub-30 horsepower space, CNH will be present in the entire product range available in the country.
Apart from expansion of the portfolio, CNH has plans of doubling its tractor manufacturing capacity to 1 lakh units. Already the capacity has been expanded to 65,000 units in April; by the end of 2023, CNH wants to take it up to 75,000 units, before scaling it to 1 lakh units per annum, given the fact that India will serve both the domestic market as well as exports.