M&M aims to double exports in 3 years with new OJA platform
16 Aug 2023
By Aniket Gupta
Mahindra & Mahindra (M&M), the leader among India’s tractor industry companies, has set its sights on a remarkable goal. It aims to double its exports from India within the next three years.
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This ambitious plan will gain momentum from the introduction of its innovative platform, OJA, which was recently unveiled in Cape Town, South Africa.
Mahindra Tractors is a part of the group’s farm equipment division of the $19.4-billion Mahindra Group, and the flagship unit of the division.
During the year ended 31 March 2023, the Mahindra Group exported 18,104 tractors. Hemant Sikka, president of the farm equipment segment, aims for a substantial leap, aspiring to raise this figure to 36,000 tractors by fiscal 2025-26.
With the introduction of the OJA lineup, M&M is embarking on an expansion into a dozen new markets. This initiative includes the establishment of a new office in Thailand, which will serve as a strategic base for accessing the ASEAN markets.
The company's sights are set on European markets as well, with special focus on countries renowned for vine cultivation, such as Germany, Italy, and Spain. Sikka emphasized that M&M currently lacks a footprint in both regions, ASEAN and Europe.
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What about the American market? Growth there has been slow, but Sikka anticipates this is a temporary situation.
In Brazil, M&M has already achieved a remarkable feat by increasing its market share from 3.5 per cent to an impressive 7.2 per cent in the past two years.
Distinct sub-platforms
Comprising four distinct sub-platforms — sub-compact, compact, small utility, and large utility — the OJA platform is a comprehensive family. At present, the sub-compact tractor range is earmarked exclusively for international markets and will not be offered in India. Special attention will be paid to the American market, according to Sikka.
However, Sikka has noted that if there is a demand for the sub-compact category within India, its introduction in India too would be considered.
Beginning in January 2024, M&M is set to initiate the export of the sub-compact series within the OJA tractor range. On the other hand, the introduction of the expansive utility platform is reserved for a later timeframe, anticipated around the fiscal year 2025-26. This forthcoming platform is created to serve both the domestic Indian market and international export markets.
What about pricing? The Mahindra OJA 27 HP tractor will be priced at Rs 5.64 lakh, and the OJA 40 HP tractor at Rs 7.35 lakh.
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Production of the OJA range will happen at M&M's Zaheerabad facility in Telangana, which has a total annual manufacturing capacity of 100,000 tractors.
Sikka notes that the tractor industry has maintained a consistent compound annual growth rate (CAGR) of approximately 7 percent over several years. In contrast, in the horticulture segment, tractors are experiencing a faster, double-digit growth rate.
The OJA series is a dedicated range of tractors tailored for specific uses, finding utility in both horticulture and paddy cultivation. Sikka explains that paddy farming need to be lighter as the presence of water makes heavier tractors vulnerable to sinking in the fields.
In an unveiling event on Tuesday, 15 August 2023, M&M introduced three distinct OJA offerings spanning a weight range of 700 kg to 2000 kg and containing power capacities ranging from 20 horsepower to 40 horsepower.