VST to make higher power tractors with Czech partner
Saturday - January 25, 2020 10:36 pm , Category : BUSINESS
Bengaluru, Jan 25 (IANS) Leading agri-machinery maker VST Tillers Tractors Ltd has tied up with Czech-based Zetor Tractors a.s. to jointly make tractors with higher horse power for Indian and global markets, a top official said on Saturday."Tractors with 50 Horse Power and 70 HP will be made in our Bengaluru plant whose capacity has been expanded by 30,000 units per annum at Rs 200 crore to roll out the higher power tractors," VST chief executive AntonyA Cherukara told IANS here.As part of the 53-year-old VST group, the city-based flagship company also has production plants at Malur in Karnataka's Kolar district and Tamil Nadu's Hosur across the state border for power tillers and another plant at Mysuru for components and other farm machinery.Malur is 55km east, Hosur 40km south and Mysuru 150km south-west of Bengaluru in the southern state.The Bengaluru plant has been making 36 HP compact tractors, with 25,000 units per annum capacity over the last 4 decades. A"As our joint venture partner, Zetor will transfer its technology to make higher HP tractors and be our channel to hardsell them in global markets where it has a large presence," said Cherukara on the occasion.The 75-year-old Zetor makes high-end HP tractors for Czech Republic and export markets in 56 countries the world over and account for 80 per cent of its annual production (1.3 million units)."In the first phase, we will make 50 HP tractors over the next 20 months and 70 HP tractors in the second phase from mid-2021 for the Indian market and scale their production for exports from 2022," Cherukura said.The Rs 650-crore listed firm also makes engines, transmission and power reaper."Though we will remain a leader in the compact tractor and power tiller segments, we will strive to be a major player in the higher power tractors to benefit the Indian farmer and achieve break-even in the next 4 years," said VST chairman V.K. Surendra on the occasion.Zetor Chairman Martin Blaskovic, who signed the agreement, said both the partners would leverage their strengths in product development and marketing to scale their operations and business targets.VST was the first Indian firm to have launched the four wheel drive (4WD) compact tractors in the domestic and European market where it is branded as "Field Tractor" and sold in compliance with the latest European Union standards.Zetor had earlier collaborated with the state-run HMT Ltd to make tractors for the Indian market.
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