9/25/2015 M&M to invest in agricultural sect startups to reach customers directly; aims to earn Rs 10k cr revenue in 7 years | ET Auto

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M&M to invest in agricultural sectstartups to reach customersdirectly; aims to earn Rs 10k crrevenue in 7 yearsThe company believes that with the help of technology and Internet, India’soldest and most politically sensitive sector is poised for disruption and theunorganised sector will slowly but surely get more organised in the comingyears, in turn increasing the group’s sales and reach to farmers.

Megha Mandavia |

MUMBAI: India's largest tractormaker Mahindra & Mahindra hasbegun discussions for investing inand collaborating with startups in theagricultural sector to eliminatetraders and have direct access tocustomers and farmers as thecompany looks to multiply its revenueten times to Rs 10,000 crore in five toseven years, a senior official said.

The company believes that with thehelp of technology and Internet, India's oldest and most politically sensitive sector ispoised for disruption and the unorganised sector will slowly but surely get moreorganised in the coming years, in turn increasing the group's sales and reach to

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#Automotive » #Farm Equipment » #SEAF India Agribusiness International Fund #Mahindra & Mahindra

#M&A #leverage #investment #Hemendra Mathur

25 September 2015, 8:55 AM IST

9/25/2015 M&M to invest in agricultural sect startups to reach customers directly; aims to earn Rs 10k cr revenue in 7 years | ET Auto

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farmers.

"We are in touch with startups in the agri space. If we like some ideas we can partnerthem or buy equity or buyout a company," said Ashok Sharma, president and chiefexecutive of Agri, Africa and South Asia operations, Mahindra group.

"This (disruption) is going to create new opportunities, business models; new playerswill come in the market."

The company, which sells seeds, irrigation products, fertilisers and fruits, is keen todevelop technology which will help farmers buy and sell directly online, seek onlineadvisory services and cut harvest losses aggravated due to multiple middlemen.

"These are important interventions that will transform the supply chain," Sharma said."The margins that companies are paying to distributors and retailers can be passed onto farmers. We are looking at solutions where we are able to offer farmers value ofinput and output." Experts say execution is a challenge, but the group can leverage itstractor dealer network across India.

"Creating a digital platform is easy but creatinga supply chain is difficult," said HemendraMathur, managing director, SEAF IndiaAgribusiness International Fund. "It is achallenge unless you have ongroundpresence. Not many companies in India knowrural India as much as Mahindra does due toits tractor business. The company will have toleverage its dealer network, infrastructure andbrand."

Mahindra Agri has recently added newbusiness verticals such as dairy, pulses andedible oil as it repositions itself as an input andfood company primarily from an input and cropcare company. The group has earmarked Rs1,0001,500 crore to build infrastructure andacquire technology to scale up newbusinesses.

The company, whichsells seeds, irrigationproducts, fertilisersand fruits, is keen todevelop technologywhich will helpfarmers buy and selldirectly online, seekonline advisoryservices and cutharvest lossesaggravated due tomultiplemiddlemen.”

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9/25/2015 M&M to invest in agricultural sect startups to reach customers directly; aims to earn Rs 10k cr revenue in 7 years | ET Auto

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It expects most growth in the next five years to come from new businesses. It isexpanding its products and reach in both local and overseas markets. In the localmarket, it is conducting a pilot in Madhya Pradesh to sell milk in and around Indoreand Bhopal and is planning to expand outside the state after 2017.

In the overseas market, it is also setting up a team in Kenya for trading agricultureproducts such as rice, pulses, seeds and micro irrigation equipment between theregion and India. The company expects revenue of Rs 1,000 crore in the current fiscal,up from Rs 600 crore in the previous year.

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Escorts tractor sales declines33.7% in August 2015The company's tractor exports recorded a sharp fall of 90.1 percent and stood at47 units, as against 477 of August 2014.

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Tractor maker Escorts Q1 net up6% to Rs 36 croreNet sales of the company declined to Rs 973.22 crore during the April Junequarter, compared to Rs 1,122.10 crore in the same period of 2014 15.

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01 September 2015, 4:38 PM IST

06 August 2015, 4:32 PM IST

9/25/2015 M&M to invest in agricultural sect startups to reach customers directly; aims to earn Rs 10k cr revenue in 7 years | ET Auto

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Mahindra Tractors sells 23,899units in June 2015Total tractor sales during June 2015 stood at 25, 090 units, as compared to 29,884 units for the same period last year. Exports for the month registered agrowth of 20%.

ETAuto BureauNEW DELHI: Mahindra andMahindra's Farm Equipment Sector(FES), on Wednesday announced itssales numbers for June 2015.

Domestic sales stood at 23,899 units,as against 28, 893 units during June2014, a decline of 17%.

Total tractor sales during June 2015stood at 25, 090 units, as compared to 29, 884 units for the same period last year.Exports for the month registered a growth of 20%.

Harish Chavan, Chief Operating Officer FES, M&M said, "With a healthy spread of themonsoon and good sowing progress across the country, we are hopeful of a very goodagricultural output, leading to improved market sentiments."

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#Mahindra and Mahindra #June 2015 sales #Harish Chavan #Farm Equipment Sector

01 July 2015, 4:10 PM IST

9/25/2015 M&M to invest in agricultural sect startups to reach customers directly; aims to earn Rs 10k cr revenue in 7 years | ET Auto

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Sonalika inks pact with MinskTractor Works to relaunchBelarus tractors in IndiaSonalika will introduce Belarus tractor range in India and sell its productsoutside India through the network of Minsk Tractor Works.

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M&M to pump in Rs 7,500cr oncapacity expansionThe $16.9 billion Mahindra Group will invest Rs 7,500 crore in its automotive andtractor businesses over the next three years.

TNN |

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Tractor manufacturer Escortsbuoyant about prospects in AfricaLeading Indian tractor manufacturer Escorts Limited is buoyant about itsprospects in Africa after its latest products got positive response at the largestfarmers' trade fair in the continent.

PTI |

25 June 2015, 5:50 AM IST

24 June 2015, 8:46 AM IST

21 May 2015, 12:49 PM IST

9/25/2015 M&M to invest in agricultural sect startups to reach customers directly; aims to earn Rs 10k cr revenue in 7 years | ET Auto

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Mahindra tractor sales fall 13 pcin April to 18,011 unitsAuto major Mahindra & Mahindra's total tractor sales in April were down 13 percent at 18,011 units as against 20,731 units in the same month last year.Automajor Mahindra & Mahindra's total tractor sales in April were down 13 per centat 18,011 units as against 20,731 units in the same month last year.

PTI |

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Tractors of New Holland awardedfor customer satisfactionLeading tractor manufacturer New Holland Agriculture has been awarded thecustomer satisfaction award by JD Power Asia Pacific based on the responsesfrom 4,789 owners in India who made the purchases between July 2012 andNovember 2013.

IANS |

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Now, buy preowned tractorsonline from portals like IBB

05 May 2015, 2:30 PM IST

25 March 2015, 5:30 PM IST

9/25/2015 M&M to invest in agricultural sect startups to reach customers directly; aims to earn Rs 10k cr revenue in 7 years | ET Auto

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TractorsWith these new initiatives MFCW hopes to sell 1.5 lakh vehicles this financialwhich will include bother from the brick and mortar and online platforms.

Nabeel A Khan |

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