The world's fourth largest tractor maker, Mahindra

Mahindra wants to expand production overseas
The world's fourth largest tractor maker, Mahindra & Mahindra has rumbled out of India and ploughed its way into the notoriously difficult US market on the back of a "hobby" tractor.

The 'Made in India' tractors have captured the hearts of US "hobby" farmers with their 30 to 55 horsepower (HP) models taking 40% of that market from its rivals in the last two years.While India's largest tractor maker exported only 1,600 of the 83,000 tractors it produced last year, it is now looking to buy overseas production plants to boost sales.Mahindra is already the world's largest producer of 25 to 40 horsepower tractors, but it needs to break into the US market if it wants to challenge rivals AGCO-Massey, Case Holland and John Deere for a place in the top three.
Little cheetahs
While its bigger rivals, whose 100 to 150 hp beasts dwarf the Mahindras, may scoff at the threat, M&M seems to think humour may be one of its best weapons.

To make America sit up and take notice, it is customising tractors for the US market. In Louisiana for instance, they have decided to paint their tractors with cheetah stripes, the colours of the state football team.

Priced up to $13,500 for 50 hp, the company expects to double last year's US sales of 1,600 by the end of 2002.

Fresh fields

After picking picked up a 51% stake in its domestic rival Gujarat Tractor Corporation last year, M&M is also looking to expand its overseas production.

Mahindra has bid for a stake in the Czech state-owned tractor maker Zetar, has outsourcing agreements to sell under the Mahindra brand name in Korea and is looking at similar deals in South East Asia, Egypt and Turkey.

But apart from its tractor division, which contributed about 40% to its turnover, M&M's other business of building light vehicles has not been doing too well.

The company recently reported continuing losses, its share price has touched three-year lows and it cut thousands of jobs from it 19,000 strong workforce.

To overtake AGCO-Massey and its other rivals it is investing in product development, brand-building and hopes to save about 48% of costs using software solutions for production and distribution.