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Analyst Meet / AGM - Analyst Meet

For FY'17, the company expects to cross its previous high sales of tractor engines of around 74400 engines achieved in FY'14

Swaraj Engines

29-Aug-2016, 12:11
In interaction with Mr. Mahesh Kaushal, Executive Director

As expected starting from June end till date, monsoon is much better than last year and most importantly, its timing and geographical spread is very good.

Normally, it takes time for the benefits of monsoon to come in to the tractor industry, but this year the way things have been planned, the benefits already have started to come in.

The company expects strong inventory to be built up for the upcoming festival season. While the real update on the performance of tractor industry will be revealed only in Nov'16, with normal monsoon and strong sentiment getting built up in the rural segment, FY'17 is expected to be a reasonably good year for the entire sector. Farmers have regained the confidence of even going for financing facilitates to buy tractors.

Swaraj Tractors is present in almost all the States except in Rajasthan, where its not able to penetrate in a larger way.

The company has a significant presence in medium (30 HP and above) and higher HP segments (upto 60 HP), which have become the most popular and fastest growing segments in the country.

Swaraj today is the 2nd largest selling brand in the country in tractors, after M&M brand.

Overall for FY'17, the company expects to cross its previous high sales of tractor engines of around 74400 engines which it achieved in FY'14 after 2 consecutive years of flattish kind of sale figure of around 64500, both for FY'15 and for FY'16 respectively.

Management expects the benefits of normal monsoon to come in FY'17 and should result in tractor industry to grow in high single digit. A double digit growth will result in FY'18, if we have another normal monsoon in FY'18 as well.

The company's installed capacity post the expansion program which started in phases, now stands at around 105000 engine p.a. with this no new capacity addition program is aimed at for next 2 years.