AGCO Partner TAFE Hits $1 Billion Sales Mark
CHENNAI, India — April 2, 2010 — A report in the Economic Times of India reports that Tractors and Farm Equipment —TAFE — the Chennai-based tractor maker, has crossed a major performance milestone in 2009-10 by achieving a consolidated turnover of over $1 billion, with revenues touching Rs 4,850 crore and a volume of over 100,000 tractors.
With this achievement, TAFE is now among the three largest tractor manufacturers in the world. It is the flagship of Amalgamations (Simpson) Group. TAFE has reserves of over Rs 1,000 crore. It has a paid-up capital of Rs 12 crore, in which the US Partner AGCO Corp. holds a 24% stake and Simpson & Co, the rest.
Announcing the landmark achievement in Chennai on Thursday, TAFE vice chairman Mallika Srinivasan said: “Two years ago, we set for ourselves an ambitious target of crossing the billion-dollar mark and we are justifiably proud of having achieved this despite the global downturn that the world markets experienced.”
Further, she said: “While exports of tractors from India declined by about 15% in 2009-10, TAFE and TAFE Motors have been able to buck the trend to emerge as India’s largest exporter with market leadership in key markets of South Asia in the face of strong international competition. Exports of components, aggregates and kits have contributed significantly to the exports turnover. Our total tractor volumes have increased by 30.5%. We are now poised to achieve greater heights in the coming years, as we forge ahead in our journey of excellence.”
The year 2009-10 also saw TAFE being commended by the Jury of the CII-Exim Bank Award for Business Excellence for “significant achievement in the journey of business excellence”.
The group chairman and TAFE CMD A Sivasailam said: “As we celebrate the 50th year of both our brands, Massey Ferguson and Eicher, we have further strengthened our long-term partnership with AGCO Corporation, US in identifying mutually beneficial global opportunities, which will provide additional impetus to growth in the coming years.
“With the successful launch of TAFE produced tractors in the Massey Ferguson brand in North America, our joint market development initiative with AGCO has been expanded to cover a variety of other strategically important geographies as well. As we plan to enhance our tractor volumes to 120,000 in 2010-11, our product range is being expanded to include tractors up to 105 HP, which will position us competitively in key international markets,” he said.
Mr Sivasailam also said: “With the strong demand for Eicher engines from the agro, telecom and retail segments, significant investments in product development and capacity expansion are under way to expand the engine range to service higher-end applications.”
Other divisions and subsidiaries of TAFE that manufacture gears, engineering plastics, batteries and hydraulic pumps as well as the automobile franchises, have all recorded good growth during the year and contributed to the overall revenues.
Tractors and Farm Equipment is a Chennai-based manufacturer of tractors and farm equipment and the second-largest manufacturer of tractors in the world in the sub-100 HP range and among the three largest tractor manufacturers in the world. TAFE is well known for its quality products, long-term relationships with stakeholders and a strong and consistent financial performance.
TAFE, apart from tractors, has business interests through its various divisions and subsidiaries in diesel engines, hydraulic pumps, gears and transmission products, batteries, panel instruments and auto franchises.