Tractors and Farm Equipment Ltd. (TAFE), and Indian-based tractor manufacturer, is expanding production capacity at 2 of its facilities, the company announced recently.
The tractor maker is in the process of increasing capacity by an additional 50,000 units spread across its Bengaluru and Bhopal plants, which produce the Massey Ferguson and Eicher brands, respectively. In doing so, the company is investing ₹250 crore ($2.5 billion) in the current financial year, according to published reports.
“We’re pretty tight [on capacity] with our factories running at over 100% and are now looking at significant capacity addition,” Mallika Srinivasan, company chairman and CEO, told The Hindu. “We’re losing business because we’re full.”
Srinivasan added that the growth in demand has to do with factors beyond ag production, including easier availability of financing and a number of development initiatives in India.
“Bihar, West Bengal, Jharkhand and Assam are top growing markets for tractors,’’ she said, adding that she was confident the tractor industry in India could see a 10-12% growth in the current financial year.