SAME-Deutz-Fahr’s Ranipet plant expansion under way

The SAME-Deutz-Fahr Group (SDF), one of the world’s leading manufacturers of agricultural machinery, will be expanding its production plant at Ranipet in order to allow increased production volumes. SDF will also be introducing its premium brand Deutz-Fahr in the Indian market.

The current production capacity at the Ranipet plant where the Group already produces tractors of 40-70 hp, 3 and 4 cylinder engines, is 6,300 units per annum. The capacity expansion at Ranipet will increase the total covered surface up to 12,000 m2 and the total area to 132,000 m2 with a maximum production capacity of 11,000 tractors and 15,000 engines a year. In 2008 the total tractor production in Ranipet increased by 28 per cent to close at 4,000 units. This year the group plans to introduce a new 65-75 HP platform with a Tier III specification engines for the export markets.

The SAME-Deutz-Fahr Group, based in Treviglio, Bergamo (Italy), is one of the largest manufacturers of tractors, combine harvesters, engines, and agricultural machinery. Globally, products are made and sold under the SAME, Deutz-Fahr, Lamborghini, and Hurlimann brand names. Tractors range from 30 to 270 HP, while combines range from 125 to 450 HP, including conventional and rotary combines.

In 2008, the company, which employs around 2,700 people, achieved a turnover of 1,209 billion Euros. SAME-Deutz-Fahr owns 45.1 per cent of Deutz AG, one of the leading independent international manufacturers of diesel and gas engines.

The localization process in India of the 50-70 HP tractor platform was completed in 2008. Initially the tractors were produced exclusively for the export market (Europe, the US, Middle East and Africa). Now SDF will produce these tractors for the Indian market under the Deutz-Fahr brand.

India has the world’s largest tractor market with a total sales volume of 310,000 units in 2008. Due to structural changes in the Indian agriculture sector, there is consistent growth in the over 40 HP tractor segment which is likely to grow and represent 38 per cent (110,000 units) of the industry by 2015.

The continued development of India’s agriculture, combined with the growing demand for modern technology, allows the perfect opportunity for SDF to introduce its premium German brand, Deutz-Fahr tractors to Indian farmers and contractors.

The Deutz-Fahr brand which is targeted at progressive farmers in India will strengthen the position of SDF in India where the group will continue to sell its current products in the 40-6- HP range under the SAME brand.

“The production of the new 50-70 HP tractor range in Ranipet for both the domestic and export markets strengthens our presence in India, a strategic market in which the Group has been present since 1996, underlines Andrea Bedosti, Corporate Executive Vice President Sales, After Sales and Marketing. Thanks to the new product range, which offers important technological features, we expect to significantly increase our market share in India”.

Francesco Carozza, Chairman of SAME-Deutz-Fahr India, stated: “Deutz-Fahr has a long tradition that spans more than 80 years. The German Deutz-Fahr brand is known all over the world for its reliability as well as for its culture of service. Deutz-Fahr tractors, combines and forage harvesting equipment are the essence of technological research incorporated into pioneering products – machines that anticipate trends in modern farming and adapt to all kinds of operating conditions, in the name of total quality.”

Globally, in the last five years there are three major areas which are seeing increased agricultural activity for agricultural tractors and machinery. They are Russia, China and India. The total world market for tractors is 1.1 million. Today, India, China and Russia account for 50 per cent of the world tractor market.

Deutz-Fahr plans to focus in the next five years on these three countries which constitute for more than 60 per cent of the total tractor market. In order to compete in these three fast growing markets, it is important to develop a product range that will suit the local market.