Yanmar & ITL will Jointly Work to Built Next Generation Tractors
New Delhi- To develop “next generation tractors” for the global market, Japanese farm equipment manufacturer Yanmar Holdings Co. is partnering with major Indian tractor maker International Tractors Ltd. ITL exports its products to more than 80 countries. The new tractors are equipped with engines complying with future emission standards.
International Tractors Executive Director Raman Mittal said that the two partners “have produced five advanced tractors since the start of full-fledged collaboration” after Yanmar more than doubled its stake in the Indian firm in March this year.
In the coming months, ITL will be producing more tractors at its Hoshiarpur plant in the northern Indian state of Punjab. Mittal said, “we are currently in the process to jointly develop next generation tractors for markets like the United States, Europe and Thailand by leveraging our mutual strengths.”
Mittal said that Yanmar has also shared human resources at the Hoshiarpur plant for the joint project. A member of the Yanmar board and head of the firm’s India agribusiness, Naoki Kobayashi said that, these moves are “an integral part of the growth strategy for Yanmar.”
In 2005, Yanmar first invested in the Indian firm, which manufactures tractors under the Sonalika and Solis brands, and has since provided it with technical guidance.
The Osaka-based company raised its stake in ITL to 30 percent from 12.5 percent through a share purchase from U.S. investment fund Blackstone Group L.P., in an effort to forge a long-term association with ITL.
To build an integrated tractor manufacturing unit at the plant, which as its global production base is capable of producing 300,000 units annually ranging from 20- to 120-horsepower tractors, ITL has invested over 8 billion rupees (about ¥14 billion).