• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Neha Kaushik

New Delhi , Oct. 11

THINGS are finally beginning to look up for the tractor industry. After seeing a continuous decline for three consecutive years, the industry finally registered growth during September.

"The industry grew by about 2-3 per cent in September after at least three continuous years of losses. The good monsoon this year has lifted sentiments. We are now expecting about 10 per cent growth in the last six months of the fiscal," Mr R.C. Jain, President of the Tractor Manufacturers Association (TMA) and Chief Executive (Group Affairs), Eicher Group, said.

The sales decreased from 2,66,000 units in 1999-2000 to 1,59,000 units in 2002-03. The last fiscal alone saw a decline of 26 per cent in the tractor industry. According to Mr Girish Sachdeva, Director (Marketing), New Holland Tractors India, the situation is likely to improve further in the months to come.

"Even as September saw good growth for the industry, the sales are likely to peak in the October-November period. This would be a result of the festivals, apart from the fact that agricultural demand usually reaches a high in October."

Agrees Mr L.D. Mittal, Chairman, International Tractors Ltd. "The good monsoon has helped reverse the trend for the industry, specifically in States which were badly affected by the drought last year."

However, the turnaround may not result in positive growth for the fiscal, given the fact that the industry declined by about 10 per cent in the first six months of the year. The good news for the industry though is that retail sales have finally taken off in the month. "Movement at the retail level is much better," Mr Jain said.

This is primarily due to the corrective measures taken by the industry to clear inventories. "The inventory levels have declined to 3-4 months from about the earlier 6-7 months. A level of three months is sustainable," Mr Sachdeva said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Dumping probe into cyclohexanone imports

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line