Tractors and Farm Equipment Ltd. (TAFE), a constituent of A. Sivasailam-driven Amalgamation Group, has joined the $1 billion club.
The consolidated turnover of TAFE has crossed this psychological barrier and scaled Rs. 4,850 crore for the year ended March 2010.
In the process, TAFE has joined yet another unique club i.e among the top three tractor maker in the world. TAFE is the second largest producer in the world of sub-100 HP range of tractors.
TAFE registered a sales volume of over 100,000 tractors during 2009-10.
Mallika Srinivasan, Vice-Chairman, said "we are justifiably proud of having achieved this despite the downturn that the world markets experienced." She pointed out that TAFE and TAFE Motors had bucked the trend to emerge as the country’s largest exporter. In the process, the company acquired leadership positions in key markets of South Asia in the face of some stiff competition, she said.
The export performance of TAFE should be read in the context of a 15 per cent decline in the overall export of tractors from India during 2009-10, she pointed out. "Export of components, aggregates and kits have contributed significantly to the export turnover," she added. "Our total tractor volumes have increased by 30.5 per cent. We are now poised to achieve greater heights in the comings years," she said.
Mr. Sivasailam, Chairman and Managing Director of TAFE, said the company had beefed up its tie up with AGCO Corporation of the U.S. in spotting mutually beneficial global opportunities. The tie up with AGCO, he said, would "provide additional impetus to growth in the coming years." Following the successful launch of TAFE-produced tractors in the Massey Ferguson brand in North America "our joint market development initiatives with AGCO has been expanded to cover a variety of other strategically important geographies as well," he said.
He said that TAFE would expand tractor volume to 120,000 in the current financial year and expand the product range to include tractors up to 105 HP. He also hinted at significant investment in product development and capacity expansion to expand the engine range to serve high-end applications.