Uddhav Kulkarni – 2019118

The Indian Tractor Industry:

 Enough production of tractors in India to fulfill the domestic demand. Exports started. M&M
grabbed opportunity and set up plant in Texas
 Indian tractor market is for medium capacity tractors
 Market comprised of various Indian as well as MNC players
 The Indian tractor market is growing as government is supporting the agricultural sector and
the infrastructure sector is also growing which will open opportunities for the high capacity
tractors

The Global Tractor Industry:

 M&M was not identified as a leading tractor manufacturing company in the world
 No globalization strategy at M&M
 Various markets in the world were growing producing opportunities for both the medium
and heavy-duty tractors which the core for M&M. So, M&M had a good opportunity to enter
into the global markets with proper strategy
 M&M had a good name in India over the other brands like John Deere and New Holland
which are the global leaders. So, M&M had potential to serve the global markets

The Chinese Tractor Market:

 Small capacity tractors were used in China. Basically, small tillers

 Most of the companies were state owned enterprise and the Chinese government had
decision power
 Farm machinery was the most profitable because incomes in rural areas were rising, partly
due to adjustments in the state’s grain procurement prices.
 There was a progressive shift towards higher horsepower tractors in China because of two
reasons: farm reforms were enabling consolidation of land holdings leading to improved
efficiency, and a robust trend in farm product prices had rendered high-priced tractors
affordable to more households

Acquisition or JV:

 It’s more of acquisition as 80% stack will be with M&M

 More power on director board
 The operations/manufacturing processes has to be changed as the production of M&M
tractors (Its models) will be manufactured in JTC plant
 Change in labor force