FARM MACHINERY INDUSTRY

Presented By

Hitesh pant ID No:

42685

History

The early agricultural mechanization in India was greatly influenced by the technological developments in England. Horse drawn and steam-tractor-operated equipments were imported during the later part of the nineteenth century. The horsedrawn equipments imported from England were not suitable for bullocks and buffaloes being used in India. These were suitably modified to suit Indian draught animals. With the production of indigenous tractors and irrigation pumps, the use of mechanical power in agriculture, has been showing an increasing trend.

Scope of Farm Mechanization The productivity of farms depends greatly on

the availability and judicious use of farm power by the farmers. Agricultural implements and machines enable the farmers to employ the power judiciously for production purposes

The quality and precision of the operations are equally significant for realizing higher yields

As production increases with mechanization of the farm operations, it creates a good scope for commercialization of agriculture

It reduces the weather risk and risk of non-availability of labour and thus wastage is minimized

Contt.. Displacement of human labour does take

place and demand for semiskilled labour in place of unskilled labour is increased

The drudgery for human labour is reduced and unhygienic operations such as handling of farm yard manure can be done with machinery

Agricultural machines increase productivity of land and labour by meeting timeliness of farm operations and increase work out-put per unit time

Traditional farming practices have evolved over the years for various processes

PROCESSES Traditional Practices Current Practices

Land Development, Tillage and Plough and Blade harrow were Tractors, Mould board plough andSeedbed Preparation used to break soil without inverting disc plough are advanced implements

or disturbing crop residue for breaking soil.

Dibblers were used to make hole in Modern seed drill and planters areSowing and Planting soil and seeds were dropped in used to distribute seeds uniformly at

funnel attached to country plough the desired application rates.

Weeding and Inter-cultivation

Plant Protection

Harvesting and Threshing

Hand hoes and animal drivenweeding tool were are generallyused for removing weeds betweenplants in a row.

Dusters are hand sprayers havebeen used traditionally for plantprotection. It was suitable for lowvolume spraying.

Harvesting of major crops was donemanually using sickle. Afterharvesting, crops were trampledand beaten for threshing.

Tractor operated implements are usedpresently for inter cultivation andweeding purpose of wider rows.

Blower and Power sprayer canregulate volume of pesticides and sizeof drops to be sprayed.

Tractor mounted as well as selfpropelled harvester and thresher areused nowadays for doing theseprocesses efficiently.

Source: Zinnov research, Literature search

PROCESSES TRADITIONAL PRACTICES

CURRENT PRACTICES

These processes involve the use of multiple equipments at each stage

Focus of Discussion

Landdevelopment,

Tillage, SeedbedPreparation

Objective

Weeding ,Sowing and Intercultivation, Harvesting and

Planting Plant Threshingprotection

Post harvestand agroprocessing

• Jungle clearance, • Sowing seeds • Weed control, • To take out grain, • Cleaning, grading,Soil opening, at desired Improving soil straw, tubers etc. separation, drying,Making farm depth, spacing, condition, reduce run without much loss storage, milling, foodroads, Field seed rate etc. off, improve and to separate processing,bundling , infiltration of rain, grains from packaging, transportLeveling usage of harvested crop and marketing.

insecticide/pesticideEquipments Involved• Seed Extractor

• Dehusker

• Huller/Dehuller

• Dozers • Dibbler • Sprayer • Cleaner

• Scrapers • Transplanter • Duster • Grader

• Ditchers • Weeder • Sickle/Dao • Mill

• Terracers • Hoe • DryerSource: Zinnov research, Literature search 10

•Drill

• Tractors

• Ploughs

• Levelers • Seeder

• Planter

• Tiller

• Harvester

• Harrow

• Plough

• Thresher

• Digger

• Reaper

• Sheller

TRACTOR

Trend in Yearly Tractor Sales Volume(Domestic + Export)

Sales Performance

Trend in Monthly Tractor Tractor Sales Volume(Domestic + Export)

Growth driversTrend in Spend on Agriculture by GOI

Institutional credit flow to agricultural sector

Trend in Monsoon Rainfall and Domestic Tractor Sales

•The Indian tractor industry has 13 national and a few regional participants

•With relaxation of the FDI in agriculture ,to boost productivity ,large international participants such as AGCO Corporation ,CHN Global and John Deere entered the Indian market long time back

Trend in Market Share of Tractor OEMs

Movement in HP – wise Segment Mix

Exports contribute about 11% of total tractor sales of country Nepal ,Sri Lanka ,Bangladesh and US are major export

destinations ,the expanding footprint of Indian tractor manufactures in African and new South-East Asian markets is expected to drive export growth over medium to long term.

Export to neighboring countries such as Thailand ,Malaysia and Indonesia is also supported by Asian Free Trade Agreement ,giving way to falling duty structure among member countries.

Trend in Tractor Exports from India

Capacity Enhancement Projects Announced by Market participants

Combine Harvester

Combine harvester is a farm equipment that can do multiple tasks such as harvesting multiple crops, threshing, winnowing, and collection of grains. The market for combine harvesters is still in its nascent stage but it is growing fast. Farmers in Western and Southern states of the country are looking to buy this equipment.

The manufacturing of combine harvesters started around 1970 when Punjab Agricultural University, Ludhiana (PAU) helped locals to manufacture farm machinery. But It was around 9-10 years back when the demand for combine harvesters increased at a fast pace.

Market There are two main models for combine

harvesters based on their working principles: self-propelled and tractor mounted. Tractor mounted combine harvesters are cheaper as compared to self-propelled combines and are often preferred by farmers who have smaller holdings of lands.

The demand of tractor mounted combines is estimated at around 3,500 and for self-propelled combines is around 1,500.

The growth rate for the demand of combines is expected to be around 12% annually. This is where opportunity lies

Export opportunities are also increasing and lots of countries in Africa like Burkina Faso, Zambia, Madagascar, and in Europe like Germany are opening their market for Indian players. Pakistan is also becoming a considerable importer of these machines.

Current Players Harsewinkel-based Class’s subsidiary, Claas

India Limited, is planning to increase its capacity by setting up a plant in Punjab’s Morinda so as to manufacture self-propelled combine harvester. The company has plans to increase its manufacturing capacity from 1,500 to 2,000 units per annum. It has invested over Rs 100 crore in the facility

John Deere, based at Moline in Illinois, set up its first combine factory in Punjab. The 1837-founded company has earmarked $30 million to be invested in phases in its combine factory .Further depending upon the demand, the optimum capacity of the harvester factory would be 5,000 self-propelled harvesters per annum. This, the company, plans to achieve in phases

Contt.. Patiala-based Preet Agro Industries Pvt

Ltd has a market share of 35 per cent in the country’s self-propelled combine harvester category. Besides that the company also manufactures tractors and agricultural implements. Initiallyproducing straw reapers, threshers and other agricultural implements.

Barnala-based Standard Combines Pvt Ltd, which is also one of the leading manufacturers of self-propelled and tractor-driven combines (combine harvesters). The company produces around 1,000 combines per annum and exports to Srilanka, Nepal, South African countries besides catering to domestic market. The company started operations in 1975 and diversified into other farm equipment and tractors.

Sales

The cost of combine harvesting of wheat and paddy is around Rs. 3000-4000/- per ha. If done manually, it takes around 20 laborers to harvest one hectare charging around Rs. 150/- per day (this could vary state-wise). Apart from that, there is a cost of Rs. 1000/- per ha for threshing also. The total cost of harvesting comes almost equal in both the cases but the time saved and labor-shortage-issues are solved quite nicely by opting for combine harvesting.

Source :Livestock census 1993,2003 ,Zinnov Analysis

Constraints The rate varies between Rs 5 lakh to Rs 22 lakh

depending upon the models and functionality.

Fragmented land holding, poor rural transport facilities, inaccessible farms and lack of local manufacturers and repairing facilities are some of the factors that have kept this industry mainly focused in North India especially in Punjab.

Lack of proper knowledge about farm equipments and shortage of diesel in the country are some of peripheral constraints.

Only cereal crops are harvested using these machines

Most of the straw is left in the fields and burned which has many environmental issues. Apart from this, farmers are losing valuable animal feed material

Punjab is the only state where almost all the manufacturers of combine harvesters are clustered. Manufacturers like Swaraj, Preet Combines, Kartar Combines, Standard Combines, and Deshmesh Combines are all from Punjab.

POWER TILLER

A power tiller is used to till the land before and after cultivation of crops. According to Wikipedia, ‘Compact, powerful and, most importantly, comparatively inexpensive, power tillers are providing alternatives to four-wheel tractors and in the small farmers' fields in developing countries are more economical than four-wheel tractors.’ In India, tillers are also used alternatively by owners as Power Generators (for generating electricity), Light Transport and as a Pump. Power Tillers are mainly applicable for small land holdings.

Market

In FY11, the Indian Power Tiller Market was about 53,000 Tillers out of which, VSTTL sold 23,450 units, KAMCO sold 12,000 units and Chinese Imports (10-12 importers) were 17,000 units.

Indian Tiller Market is growing at 20% CAGR since the past 5 years in Volume terms. This is expected to accelerate to 25% CAGR over the next 10 years. Life of a Tiller is approx. 10 years therefore the Replacement Demand is not very significant. Small Tractor (below 20HP) Market will grow even faster than the tiller market. Few states give Subsidy for Small Tractors.

Orissa has the largest tiller market in India. During FY11, 10,800 units or 20% of all tillers sold in India were sold in Orissa.

Compared to 6,00,000tiller units p.a. sold in China, India sells just 53,000 units p.a. even though total arable land in India is more than in China .Even Bangladesh has sales of close to 50,000 units p.a. This comparison shows the incredible under penetration of The Indian Tiller Market.

V S T TILLERS TRACTORS LTD. V.S.T. Tillers Tractors Ltd (VSTTL) is an

Agricultural Equipment Manufacturing company incorporated in the year 1967 in Bangalore, for the manufacture of Power Tillers and Diesel Engines. The plant was commissioned in the year 1970 in collaboration with Mitsubishi Heavy Industries, Japan which also holds a small stake in the company. The company presently operates plants in Bangalore (Whitefield), Hosur and Mysore. The main products of the company are Power Tillers & Tractors.

Vendors of Agricultural Machinery

Agricultural situation

Source : www.centroesteroveneto.com

Agriculture Machinery Trade(million US $)

110.1168.58

190.57

27.8692.84

65.6649.13

40.4

36.49

50.51

108.7184.79

50.8

37.590

50

100

150

200

250

EXPORTSIMPORTS

Source : www.ficci.com

Highlights The Indian agricultural machinery

market had a total revenue of $2.8 billion in 2010 which is 5% of world agricultural machinery industry, representing a compound annual growth rate (CAGR) of 8.6% for the period spanning 2006-2010.

Market consumption volumes increased with a CAGR of 7.7% between 2006 and 2010, to reach a total of 305.2 thousand units in 2010.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 6.9% for the five-year period 2010-2015, which is expected to drive the market to a value of $4 billion by the end of 2015.

GOVERNMENT OF INDIA INITIATIVES FOR PROMOTION OF AGRICULTURAL MECHANIZATION

•Human Resources Development in Farm Mechanization

•Quality Control of Agricultural Machines and Implements•Popularization of New Agricultural Machines•Incentives for Purchase of Agricultural Machines/ Implements

•Incentives for setting up of Custom Hiring Centres of Agricultural Machines

•Promotion of Post Harvest Management

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