Chennai: World’s third largest tractor manufacturer, Tractors and Farm Equipment Limited (TAFE) and Japanese agricultural machinery manufacturer, ISEKI & Co. Ltd, inked an agreement for the manufacture of compact tractors in India.
Under this agreement, ISEKI will offer product technology to TAFE for the manufacture of these products. The scope of the agreement will, in addition, cover sourcing of components/ assemblies through TAFE, building on the volume advantage that TAFE offers. TAFE will offer ISEKI’s light utility compact tractors in the 35-54 hp range in India. The tractors will be manufactured at TAFE’s Madurai plant and are expected to roll out by 2020.
Chairman and CEO, TAFE, Mallika Srinivasan, said, “This agreement brings together ISEKI’s rich experience in the light utility compact tractor segment globally and TAFE’s strong position in the Indian market, along with its strong manufacturing capability and robust supply chain, to offer Indian customers an international product range that will meet their requirements in new, emerging applications through a unique value proposition.”
Chairman of ISEKI, Kikuchi, on signing the agreement said, “We will enter into the largest tractor market in the world, India and the Indian subcontinent with greatest partner called TAFE. We’ll promote technical alliances with TAFE by this agreement and collaborate with each other as important partners not only for India but also for our global strategy in long term.”