Mahindra Gujarat Tractor (MGTL), the joint venture (JV) between Mahindra & Mahindra and Gujarat government in the ratio of 60:40, has been renamed on Monday as Gromax Agri Equipment (GAEL). And, under the JV, a new tractor brand was launched called as Trakstar.
Trakstar will be offered in five segments within 30-50 horse power (HP) category and will compete with 80 per cent of the industry. Both the parties — Mahindra and Gujarat government — will be investing Rs 150 crore into Gromax in 3-5 years period for product development. And, investment will be in the ratio same as partnership ratio. The company already has a production facility in Vadodara, Gujarat, with a production capacity of 3,500 units.
“Gromax will be an important element of our journey of transformation towards a higher penetration of farm mechanisation, enabling farmers to double their income,” said Rajesh Jejurikar, president of Farm Equipment Sector, Mahindra & Mahindra. Gromax would provide affordable mechanisation solutions to the farming fraternity. “We have not decided the prices yet,” he informed, adding that the company will try to keep prices of Trakstar products 5-7 per cent cheaper than Mahindra and Swaraj products.
Gromax will start operations in India in two phases. The first phase will kick off in September in the eastern part of the country including Uttar Pradesh, Bihar and Jharkhand, covering approximately 32 per cent of the market. The second part will cover north-eastern and western part of the country including Assam, Gujarat and Maharashtra.
With a motive to offer a value proposition to consumers, Gromax will also provide some additional services. The package will include Mahindra Finance service that will provide loans to farmers at low EMIs (Equated Monthly Instalments), braded quality agriculture inputs via an online portal, BigHaat, and opportunity for additional income through a platform called Trringo, where owners can lend their tractors on rent.