CNH to Invest USD $50 Million for Indian Farm Machinery, Plans to Unveil 105HP Tractor & 1,000 Balers in May

CNH, a renowned Italian-American company specializing in off-road construction and agriculture, is set to make a substantial investment of around USD 50 million in the Indian farm machinery sector in the current year. CNH is focusing on smaller, under-40 horsepower tractors, suitable for India's many small and medium-sized farms which means easier access to modern equipment for a wider range of farmers.

According to a senior official from CNH India, it has been disclosed that the company, renowned for its New Holland brand, is gearing up to launch a formidable 105HP tractor in the upcoming month of May. With a target of selling 1,000 baling machines, CNH aims to improve crop residue management and soil health across the country, supporting sustainable farming practices. The new 105-horsepower tractor which is launching in May, ideal for tasks like baling and ridge application will assist in addressing the requirements of farmers who seek increased power for their specific needs.

Narinder Mittal, the Country Manager and Managing Director for CNH India and SAARC, expressed optimism about the vast potential within India's agriculture sector. Mittal stated that the company envisions doubling its market share to 8% over the next four years. A substantial portion of the planned investment, around USD 40-50 million for the calendar year, will be allocated to the agriculture segment, encompassing program investment.

Mittal highlighted that a significant chunk of this investment, ranging from USD 25-30 million, is earmarked for the tractor business alone. Cash flow for this initiative is expected to commence this year, with the anticipated launch of the new model by the close of 2025. This shows the company’s determination to innovate and help farmers save money.

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The company is working to produce baler components within India, creating jobs and boosting the local economy. The geographical focus for baler sales includes key agricultural regions such as Punjab, Haryana, Uttar Pradesh, and parts of Madhya Pradesh. Farmers can expect a wider range of tractors and balers at competitive prices. Balers, which compress agricultural residue into manageable and transportable bales, play a crucial role in sustainable farming practices. Small square balers, priced around Rs 11-12 lakh per unit, can be used with existing tractors, while the larger big/round balers, costing approximately Rs 2 crore per set, require tractors with over 100 HP for optimal operation.

The expansion will create new opportunities for those interested in the agricultural machinery industry. Also, there will be access to advanced equipment that can lead to higher yields, efficiency, and ultimately, better incomes for farmers.

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CNH India's commitment to localization is evident in its plans to manufacture small balers in Pune while also intending to localize components currently being imported by the middle of this year. CNH India is also making waves in the manufacturing sector with its cutting-edge production facilities. One plant, located in Greater Noida, Uttar Pradesh, specializes in crafting top-notch tractors, consisting of an impressive annual capacity of 60,000 units. Additionally, the company has a dedicated facility in Pune, Maharashtra, focusing on the production of cutting-edge harvesters.

CNH India operates through three distinct legal entities in the country. These entities are strategically aligned with the core sectors of agriculture and farm machinery, construction vehicles, and financial services. The collective workforce of over 3,400 dedicated professionals contributes to the company's success and innovation.

CNH India has also secured an enviable position in the market, with approximately 71% of its total revenue, reaching a substantial USD 1 billion in 2023, stemming from the flourishing tractors business.

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