M&M is developing a growth strategy beyond the tractor

• Revenue from hard-working farming equipment

Mahindra & Mahindra Limited (M&M) aims to push the farm machinery in India through its new Farming-as-a-Service (FaaS) business, Krish-e, as part of its strategy to expand its Farm Equipment Sector ( FES) over the tractor.

Krish-e came into operation in 2020 and has so far established more than 100 Krish-e centers in all 16 provinces. Operated by Mahindra and Swaraj traders, these centers provide services throughout the crop cycle.

•  ‘Cost of farming’

Mahindra said he focused on reducing farming costs, improving crop production and, consequently, strengthening the farmer's income.

In its first year of operation, Krish-e had set up 60 rental banks where improved farm equipment was available for rent with a portable touch screen or a farmer’s smartphone.

• Rice transplanters

"We have equipment such as rice implants and laser scanners, tractor-harvesting machines ... and potato planting machines," said Ramesh Ramachandran, senior VP, FaaS and head of the Farm Sector Strategy. “This is not the kind of equipment that farmers will buy for themselves, and they do not know it very well.

"Krish-e will help make this device popular by showing them tangible benefits," he added.

To date, 20 lakh rental hours have been managed on the lease site, with more than 35,000 acres of farmland managed accurately.

Therefore, ₹ 40 crore of additional income has been simplified for rental businesses. Also at Krish-e and M&M, 150 million farm inputs and plant inputs were also sold through the program.

Ramdas Dhandage (37), a businessman from Baramati, Maharashtra, who owns three tractors, Mahindra, said he had seen rapid growth in his farm services and the tractor rental business.

“Total income has increased from R1.5 lakh to R4.5 lakh per month. After deducting EMI, care and additional costs, my total income is up to R1 lakh per month, ”he said.

Previously, he used to drive a tractor on farms but has now appointed a manager and two drivers to support his business. Recently, he bought a super corn harvester to harvest timely and cost-effective savings for his customers.

Mahindra has developed a comprehensive plan to grow its farm goods business.

• ‘Not used by machine’

"India has a tractor, but it is not mechanized," he said. Ramachandran.

“The global market for agricultural machinery is estimated at $ 160 billion, with farm equipment making $ 100 billion and tractor $ 60 billion. But according to the Indian state, the tractor market is estimated at $ 7 billion, with farm equipment at $ 1 billion. There is great potential for growth in the agricultural machinery sector, ”he added.

By allowing customers to sample new farm equipment at a relatively small cost, with Krish-e's ability to increase from 100 to 1,600 Mahindra and Swaraj vendors, Krish-e can further provide complement to Mahindra's sales . and Swaraj farming equipment.

Recently, the company announced that it would be vigorously expanding its farm machinery business over the next six years. It is looking at 10 times the growth of its farm machinery business (excluding tractors) by 2027.

The company plans to launch 15 new farm machinery products and wants to expand its network of farm equipment vendors three times by 2025.

It also established a farm machinery factory in Pithampur, Madhya Pradesh in 2023.

To do this, Mahindra has made strategic investments worldwide at agri tech Tech companies such as Sampo Rosenlew of Finland, Erkunt of Turkey and Mitsubishi of Japan.

Krish-e is supported by recently launched applications called Krish-e & Krish-e Nidaan.

These apps provide certified and customized plant crop tips that are easily presented to growers, plants and regions in many languages ​​using audio and video content.

Mr. Ramachandran said, “Our new farming as a resource business is a phygital [physical + digital] business. To date, Krish-e has affected more than 200,000 farmers with improved livelihoods. ”

"Through the demo sites or sites of Takneek, Krish-e works with more than 6,000 farmers, using new farming methods and modern farm equipment to demonstrate the visible impact of technology and new age practices to further the farmer's ethical transformation," he added.

With the Takneek sites, Krish-e has been able to generate revenue up to R15,000 per hectare. This translates into an estimated R25 crore increase for Takneek farmers, he said.

Such activities already help potato, grape and sugarcane growers to reduce their farming costs and improve their yields.

Vikas Kashinath Kate, 45, a Baramati farmer with a 40-hectare sugarcane crop, said he used to face new challenges every day in the field but now thanks to advanced technology it is expected to increase profits.

“I used to sell 50 tons of sugarcane, now I expect it to exceed 70 tons. The sugar industry that we usually sell our product has given us R2,750 per ton and now it will pay about R3,100 per ton for quality improvement, ”he said.

Farming as a Company Service (FaaS) converts high fixed costs associated with ownership of expensive farm equipment, agronomy equipment and accurate farming data and solutions, into variable costs for farmers.

In other words, FaaS aims to make modern farming methods, world-renowned, accessible to the majority of Indian farmers, who often face limited production problems.

According to Krish-e the company said it would like to make a difference in the lives of 20 million farmers over the next 10 years.

While the government is working to double the farmers' income, Mahindra is focusing on increasing their income per hectare. Either way positive for the farmer.