New Delhi: Tractor maker Escorts has formed a joint venture firm with Gujarat-based auto components firm Amul Group to manufacture specialised tractors under Steeltrac brand.
As part of the agreement, Amul Group will be the majority stake holder with 60 percent and the rest will be held by Escorts in the joint venture firm -- Adico Escorts Agri Equipment.
"Under this joint venture, we are going to produce specialised tractors. There is a need for small tractors for usage in various fields, including vineyards and orchards. With this JV we are going to cater to this need," Escorts Agri Machinery, Vice-President, Head of Knowledge Management Centre (R&D), Shenu Agarwal told PTI.
He however did not disclose financial details.
The JV firm would utilise Amul Group's Rajkot-based manufacturing plant, which has a capacity to produce 10,000 tractors per annum, to come with new products, Agarwal said.
The Gujarat-based firm already manufactures one product under the Steeltrac brand from the facility.
In 2012, Escorts had entered into a strategic alliance with Amul Industries for the development and distribution of Steeltrac.
"Now with this JV, we will take care of the entire front end operations, including sales, service and distribution. We would also be responsible for design and development of new products," Agarwal said.
He added that the JV plans to come out with two new products in the current fiscal.
Escorts Chairman and Managing Director Rajan Nanda said: "The joint venture is an excellent strategic fit, presenting a unique opportunity to leverage the complementary strengths of our robust product portfolio".
Amul Group Chairman Chandubhai K Santoki said the partnership will go a long way in addressing the farmers with special needs.
