Escorts’ Agri Machinery division is not just a participant in India’s leap towards farm
mechanisation; it is an active catalyst
India is the fourth largest agricultural market in the world. For six long decades, Escorts played a pivotal role in the country’s labour-intensive agriculture sector by pioneering the concept of farm mechanisation. Over the decades, Escorts has strengthened customer proposition through the launch of products (and variants) addressing existing and emerging applications. This has made it possible for Escorts to extend from standalone tractor manufacture to an integrated farm solutions provider (offering crop solutions, lubricants, engines and gensets). Going ahead, the Company is focused on developing integrated automotive solutions through models delivering the highest fuel-efficiency standards, entry-level tractors addressing the needs of small and first-time buyers, tractors suited to ‘rotary’ implements, launch of India’s first-ever inverter tractor and the launch of prestige-enhancing Ferrari tractors with niche applications. More importantly, Escorts is investing substantially in cutting edge training, maintenance and repair infrastructure (Escorts Training and Development Centre, Bengaluru) as a showcase of its overarching commitment to enhance India’s agricultural productivity. Extending from product sale to a solution; from a transaction to an enduring relationship.
Scale
- Escorts is among the three largest tractor companies in the largest tractor market of the world; the brand enjoys a 14.5% share in its core markets of presence (North and Central India during 2012-2014)
Range
- Escorts provides one of the largest complement of tractors to select from – 45 models (25-75 HP) that comprehensively cover the country’s mid and premium segments
Brands
- The Escorts value proposition is centered around two cherished brands – Powertrac (mid-range brand, 25-55 HP) and Farmtrac (premium brand, 34-75 HP)
Innovation
- Escorts introduced 15 new products over three years; almost 45% of divisional revenues in 2012-14 were derived from products launched in three years
Dealers
- Escorts products are never far from customers; its 730-strong dealer network plus 100 sub-dealers distribute products, provide after-sales service and after-market tractor dealership
Presence
- Escorts tractors are manufactured in four Faridabad units (Haryana) and one in Poland (Europe) with a cumulative annual installed capacity of 100,000 units per annum
Spread
- Escorts tractors are marketed in more than 60 countries (Europe, Africa, SAARC countries, West Asia, South East Asia and Latin America, among others)
Value
- Escorts manufactures almost 70% of critical components in-house, ensuring tighter cost and quality control
Revenues
- Escorts’ agri-machinery business comprises its largest division with revenue growth of 13.5% to 5123.31 cr and EBIT of 496.44 cr in 2012-14
Core operational and financial metrics 
| 2011-12 | 2012-14 (18) | |
| Tractor production | 61,871 | 1,00,886 |
| Tractor sales | 60,673 | 1,00,833 |
| Revenue | 2911.76 | 5,123.31 |
| EBIT | 226.57 | 496.44 |
Principal 2012-14 developments
- Increased the division’s contribution to overall revenues from 73.7% in 2011-12 to 80.7% in 2012-14
- Enhanced non-recourse channel loans, moderating debt from H300 cr three years ago to H40 cr in 2012-14
- Reinforced TPM and Six-Sigma practices; moderated manufacturing costs 250 bps as a percentage of turnover
- Reduced per tractor investment from 121 person-hours to 105 person-hours
- Saved 40% costs through equipment reengineering (as against replacement)
- Marketed 68,060 tractors during April 2013-March 2014, up 11% over April 2012-March 2013 period
- 51% of total tractors sold comprised Powertrac series (45.2% in the April 2012-March 2013 period)
- 49% comprised Farmtrac series (54.8% in the April 2012-March 2013 period)
- Introduced the innovative Heritage Series (manufactured in Poland) in Europe; these classical tractors up to 75-HP are positioned as auxiliary equipment to bigger tractors with 25-30% lower ownership costs
- Launched the Farmtrac Executive Series (45+ HP) and the Powertrac DS+ Euro Series (35-55 HP) marked by lower fuel consumption and higher power efficiency
- Introduced the specialised 24-HP Ferrari tractors in 2013 following an agreement with the Italian brand for exclusive distribution in India