Tractor manufacturer Escorts has entered into a joint venture with Rajkot-based Amul Group for manufacturing speciality tractor. While Escorts will hold 40% in the new company Amul Group will own 60%.
The two companies had joined hands with Amul Industries in 2012 for development and distribution for Steeltrac, a speciality tractor.
Steeltrac is complimentary to general purpose tractors used in operations like inter-weeding for farmers growing row-crops such as groundnut, cotton and sunflower.
The market for specialised tractors has been growing tremendously and this strategic investment will further enhance Escorts commitment towards brining a wider range of products to Indian farmers, stated a note from Escorts.
Rajan Nanda, chairman and managing director, Escorts said, "There has been an exponential growth in the specialised tractor market and Escorts is glad to be a part of this segment. The market has witnessed a phenomenal growth from zero to about 20,000 tractor units within the last four years."
Amul has set up a production facility at Rajkot with a capacity to produce over 10,000 tractors per year. The Amul Group is a manufacturer of automotive components having several manufacturing units across the country.
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