VST Tillers Jumps 18% Up on Crossing 5 Lakhs Power Tillers Production Milestone

VST has not seen any productive results in compact tractor models where it is a well-known name, and therefore it will be expanding its product line by launching the larger horsepower HP utility tractor

On Wednesday, VST Tillers Tractors Ltd crossed the production milestone of 5 lakh power tillers from its manufacturing plant at Malur in Bengaluru with a jump of 18 per cent in the share price.

In an exchange filing the company said, “The VST power tiller industry is around 60,000 units in India and by 2025 it is expected to grow to 100,000 units. VST Tiller is the leader in this area and has a market share of over 65 per cent in India.”

Recently, VST Tillers Ltd announced the launch of its premium utility tractors under the Zetor brand in Q1FY24.

In an interview with CNBC-TV18 CEO Antony Cherukara said,“We are on the verge of launching utility tractors with our joint collaboration with Zetor, which should be launched in the first quarter of the coming financial year. With this, we will be entering into the larger horsepower space.”

He added that the company has not seen any productive results in compact tractor models where it is a well-known name, and therefore it will be expanding its product line by launching the larger horsepower HP utility tractor.

Cherukara also said, “With this, the share of high HP in our tractor volumes is expected to reach 20 per cent in FY24 and 30-40 per cent in the following year.”

VST is also thinking to increase its annual research and development expenditure from Rs 40-50 crore to Rs 100 crore in the next couple of years.

It will support the company’s growth efforts, including transforming from a power-tiller-centric company to a farm mechanization company and also getting a revenue of Rs 3,000 crore by FY26.

In the last 3 years, VST’s market capitalization has increased by over 200 per cent, however, it also has declined by 4 per cent in the last 1 year.

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