Escorts looks overseas to boost sales revenue
06 Jul 2016
Tractor maker Escorts is planning a big boost to exports and is tying up with channel partners to bolster revenues from exports by the end of this decade. The company has targeted to earn a third of its revenue from exports by the year 2020.
Escorts is reported to have created a special business division to monitor international sales as it plans aggressive expansion in overseas markets that contribute negligibly at present.
With a present installed capacity of 1 lakh units, this would mean exports of over 30,000 tractors per annum.
Escorts also on Tuesday unveiled 13 new tractor variants in the 12-110 HP category as part of this strategy.
"We have laid down an extensive road map to grow presence globally," Rajiv Wahi, head (international business) at Escorts Agri Machinery said. "Previously we mostly exported India-made products to surrounding countries in Saarc and Asean regions. We have developed products tailored for the world market, inked pacts with channel partners to expand international presence to around 80 countries by 2020," he said.
Wahi declined to disclose the investment Escorts has made to fund its international expansion.
With Mahindra & Mahindra dominating the tractor market in India, Escorts is targeting the major markets of the United States, Turkey, Mexico, Brazil and South Africa to emerge as a dominant player in tractors.
It is also planning to set up an assembly unit for tractors in Algeria.
In the April-June quarter, Escorts sold 14,875 tractors, posting a growth of about 10 per cent compared to that a year ago. While its domestic sales went up 11.3 per cent to 14,549 units, exports plunged 47 per cent to 326 units.