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VANRAJ TRACTORS

POWER PFAFF BOYS

Paras Kumar (36218)

Supreet Lakhotia ( 36276)

Swapnil Kothari (36280)

Vipul Kalra (36305)

Segment Analysis
Industrial Large Farmers Small & Marginal Horticulture

High disposable income

Can be used for material handling operations

There is a need of small vehicle which can move through rough and congested streets

Higher Demand There is a shift from 20-30 HP towards the higher segments(50-60HP) Higher HP segments give better overall fuel efficiency for large farmers Average size of land being higher Large tractors are more cost effective Segment catered by all big players

Threat of Substitutes is very high & therefore its a risky segment

Our product will become industry ready only after modifications so its not profitable presently

Industrial

Large Farmers

Small & Marginal

Horticulture

Small & Marginal Farmers


In this segment about 82% of the people do not have tractors, thus having more scope for future. Land holdings are smaller, for small farmers it is 0.4 hac & for marginal farmers it is 1.4 hac. Thus they need a tractor which is not bigger in size.
STRENGTHS Single piece casting Power Take Off Affordable price. Low maintenance and operating cost Three wheeler convertibility. WEAKNESSES Lack of experience. Lack of market research Lack of concept testing Higher price compare to other mini tractors.

They purchase big tractors by taking credit from banks but are unable to meet break even hours

This will increase their social status; provide emotional benefits along with ensuring timely agriculture operations

OPPORTUNITIES Highly potential market (world largest market for tractors) Third largest gross cropped area High number of marginal & small farmers Increase in horticulture

THREATS Chinese tractors dumping. Indirect completion from assembled tractors manufactures Govt. restriction Unexpected climatic condition Fragmented lands

This segment is not served by big players, as they are interested in more margins.

Industrial

Large Farmers

Small & Marginal

Horticulture
Mr. Vikas Gupta Dealer: FarmTrack Tractors Alwar, Rajasthan

Mr. Mohit Raghuvanshi Mr. Pranshul Lashkari, Dealer: New Holland Tractors Farmer, Vidisha Vidisha, Madhya Pradesh (Madhya Pradesh) Interview Excerpts
zaroori hai ki tractor zameen ko gahra jot sake Dealer kisaan rent pe jada horse power k tractor ka istemaal karna pasand karte, hai bajaay kam horse power ka khareedne se

Focused States
Uttar Pradesh Madhya Pradesh Gujarat

Maharashtra

Soil Pattern vs Tractor Preference


Soil Type
Alluvial Laterite & Black

States Punjab, Haryana


Gujarat, MP, Maharashtra

Tractor Preference Lower horse power for tilling


Higher horse power for tilling

Lower HP Tractor

ACCEPTABILITY

Acceptability

Affordability

Availability

Awareness
AVAILABILITY
Small Farmers are Scattered Challenging to set up a distribution channel

AFFORDABILITY
Bank Loans Conditions minimum 4 acres of irrigated land and 8 acres of dry land Fragmented land holdings majority of farmers own less than 2 hectares Defaulter rate high

Observation: Difficult to reach out to small farmer segment

THREAT OF COMPETITORS
Cheaper Chinese products available Price Sensitivity High Bargaining Power of Buyer High Rented Tractors from Companies (eg. Eicher) Rented tractors from larger farmers
Excerpts: Farmer 10-15 beega zameen k liye salaana 1-2 baar tractor rent pe lene mein kya harz hai

Conclusion from Secondary ResearchFrom companys point of view, its a risky proposition

Market Forecast
a. Sales (given region): 45%/2812000 units* b. Less than 20 HP : 1 % of total sales c. Demand Forecast : 2812 Units for FY 01 d. CAGR : 5-7 % ( ~ 6 %)

Horticulture Growth
Indias horticulture Production is growing at 30 per cent CAGR India is 2nd in World in Terms of Horticulture Production Major Horticulture States being Gujarat , Maharshtra have evolved as new Export Hubs for Horticulture

Competitor Analysis
In under 20 HP segment only Big Player is mahindra with 15 Hp tractors & other Players like Field Marshal , Trishul & captain are not targeting Horticulture Sonalika has also launched a tractor targeted towards Horticulture farmers but in north so we can tap western region as growth rate is high in these states

Acceptability

Affordability

Availability

Awareness

Customer Need

Customer Need

Product Feature to fulfill Customer Need


Being 10 HP tractor with wheelbase of 1625 mm is perfect for Horticulture.

Identification after Primary Research Mr Agyaram Kumar Mango Plants owner (Madhya Pradesh) Nina Patil Fruits Entrapreneur Pune Vegetable Farmers Dattadevrao Kale Bhausahab Jagdale Village : Ratanjar , Karjat, Dist. Ahmednagar, Maharashtra Consultancy Vanashreeagrotech Central institute of subtropical horticulture, Lucknow

Big Tractors have Big wheels , So with farming of fruits & vegetable Big Tractors cant be used

Use :- Farmers use tractors as a LMV, They use it to commute & also to go to market to sell their fruits & vegetables . So mileage & handling is very important concern for them

Vanraj consumed only 1.5 litres of diesel per hour there by resulting in huge savings

Very Compact fields for ex For mango 8*8 Fields require very high control & control & maneurverability

3 wheel convertability & turning radius offers better maneurverability & Control. Especially in Mango Clusters of Gujarat & Maharashtra

Maintenance is one of the major concern for farmers as they look for low Cost of maintenance

Single Body & require very less Maintenance cost

Acceptability

Affordability

Availability

Awareness

KEY INSIGHTS
As our operating capacity is 300 units, so we will target only major horticulture clusters of Gujarat , MP, Maharashtra& UP in 1st year. In the subsequent years we will target other Places as well.

Identification Of Major Distribution Centres


Identify Major Horticulture Hubs in these states Major Horticulture Clusters as proposed by Government
Anand & Banaskantha are evolving as major Horticulture Hubs in Gujarat Manufacturing facility in Anand will also provide strategic advantage Source: hortnet.gov.in

Gujarat Manufacturing Unit, Anand Dealers ( Across Major Horticulture Clusters)

Ratnagiri to target the Konkan Cluster which is major mango producing belt in Maharashtra Maharashtr In Marathwada cluster , target Aurangabad , as Aurangabad is proposed major Horticulture cluster a Farmers
Banaskantha Banaskantha

Madhya Pradesh

Bhopal as it coincides with the mango ,aomla & Orange Cluster,

Anand Anand

Uttar Pradesh

Target Lucknow as major distribution centre as Central institute of subtropical horticulture is there & its near to kannauj which is proposed Horticulture hub

Acceptability

Affordability

Availability

Awareness

Price Sensitivity is very Low in Horticulture Farmers. So we can have high profitability

There are various schemes under National Horticulture Mission under which financial help is provided to horticulture farmers

With high technology & more Knowledge , they are less averse to crop failure & hence less financial risk & risk of default

Information Search Banners, Posters , Awareness Financial point of view Showcase in National & International Horticulture Expo Presence at Information Centres Field Demonstrations

Evaluation Of Alternative Demo Tractors in Weekly Haats and Melas Reference from Opinion Leaders Word Of Mouth Sponsoring Radio and Regional Television

Purchase & Post Purchase

Good After-Sale Service CRM through Mobile Messages Horticulture Technology Knowledge delivery

POSITIONING

Appendix