ADR Axles looks to be part of India growth story

New axle production facility opened in Pune

ADR Axles India Pvt. Ltd., a fully-owned subsidiary of ADR Axles of Italy, has opened its new axle production facility at Pirangut in Pune. The plant was inaugurated in the presence of Bharat Gandhi, Chairman, Hydraulic Trailer Association, Dott.ssa Stefania Costan, Consulate General of Italian Embassy, Flavio Radrizzani, President, ADR Group, and Michele Panuccio and Chiara Radrizzani, Directors for ADR India.

Mr. Flavio Radrizzani, President, ADR Group, flanked by Ms. Chiara Radrizzani, Director, ADR India (left), and Dott.ssa Stefania Costan, Consular General of Italian Embassy, jointly inaugurating the new facility in Pune. On the extreme left and extreme right in the foreground are Mr. Subhas Shinde, renowned agriculturalist from Phaltan, Maharashtra, and Mr. Bharat Gandhi, Chairman, Hydraulic Trailer Association

ADR Axles was founded in 1954 in Italy by Giovanni and Antonia Radrizzani. During the 1970s, the artisan company became an industrial entity exporting from Italy to Northern Europe and Africa. The following 30 years were characterized by growth in the international market with the acquisition and creation of new premises at various locations around the world. Today, the ADR Group has 12 facilities spread across Italy, France, England, Poland, China, Brazil, Canada, Spain, Australia and India, which together occupy a covered surface area of 150,000 sq. m. and employ approximately 1,500 workers worldwide.

India growth story

ADR, which supplies agricultural machinery all over the world, will develop products for two sectors in the Indian market, namely, agricultural business and road business, and will use two brand names ADR and SAE, both very famous in Europe, especially known for their advanced technology products.

ADR Axles India will produce the ADR-branded agricultural axles with and without brakes with capacity ranging from 250 kg to 10 ton, along with suspensions and stub-axles. In October, its agricultural axles were tested under ARAI, making ADR India one of the few axle manufacturing firms whose axles are certified for brake testing. Apart from agricultural axles, the company also makes the SAE-SMB brand of trailer axles from 13 ton to 16 ton with mechanical axles & suspensions.

The ADR Axles team posing for a group photograph in front of the new facility

With the heart of ADR’s technological innovation being research, the collaboration of ADR Group’s study centres with famed international institutes and leading vehicle manufacturers gives the firm the ability to define product characteristics and functions based on customer expectations.

India has become the world’s fastest growing economy and the expectations for fast agricultural mechanization are high and real. ADR has entered the Indian market with the aim of serving its customers with superior products and services. Driven by its belief that the market will undergo huge economic development, the company is keen on being part of the India growth story. The company is committed to the development of production, expanding investment and increasing the employment of the Indian people. It is willing to invest several million dollars to set up a new plant in Asia to compensate the lack of productivity of China and its increasing costs.

The ADR Group is looking at Indian investment as its new future development driver. With agriculture playing a vital role in India’s economy and over 58 per cent of the rural households depend on agriculture as their principal means of livelihood, which, along with fisheries and forestry, ‘is one of the largest contributors to the GDP.

India, the second largest producer, accounts for 14 per cent of the global sugar output. It is the sixth largest exporter of sugar, accounting for 2.76 per cent of the global exports. Most of the sugarcane transportation is done with agricultural tractors and trolleys from farms to industries in various States in India. ADR is looking to start products for these types of trolleys where they can supply agricultural axles with brake systems. The estimated volume potential for the trailer market is expected to reach 350,000 units by 2018 growing at CAGR of 15% (during 2010-16). The Indian tractor industry is the largest in the world, accounting for nearly 25% of global production.

According to the Department of Industrial Policy and Promotion (DIPP), the Indian agricultural services and agricultural machinery sectors have cumulatively attracted foreign direct investment (FDI) inflow of about $2,299.83 million during April 2000 – September 2016.

The present scenario for agricultural segments for sugarcane trolleys is seen as an unorganised sector. An agricultural accident survey was carried out in collaboration with the Indian Agricultural Statistics Research Institute, New Delhi, for a period of one year in seven States, namely, Tamil Nadu, Orissa, Madhya Pradesh, Punjab, Rajasthan, Arunachal Pradesh and West Bengal. Under the farm machinery category about 31% of accidents were due to tractors and tractor-operated equipment.

The Indian Agricultural Ministry can regulate and can push the manufacturers to start taking some counter measure in the products they are presently turning out like agricultural trolley or trailers and start using axles with different technology other than the present traditional axle technology which is without brake systems, and can use axles with brakes and on roads to find the agricultural trolleys or trailers with brake systems.