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Indian Tractor Industry, Q3 2011
Credit Analysis & Research Limited, July 2011, Pages: 62
'Indian Tractor Industry: “Growth to slow down from current levels in short term”
The Tractor industry has always been a barometer for the state of rural economy in India. The Indian tractor market has witness a significant rise post liquidity crises of FY08 and FY09. Healthy monsoons in most parts of the country, rise in minimum support price (MSP), favourable farm credit scenario coupled with shortage of agricultural labourers owing to rise in employment opportunities in rural areas through National Rural Employment Guarantee Act (NREGA) led this growth.
‘Indian Tractor Industry' gives valuable insight of the industry encompassing its characteristics, demand drivers, regional dynamics, segmental dynamics, government regulations and trends in duties, analysis of domestic market, export market and competition. The trends are analyzed in depth for various segments, namely small tractors, mid size tractors and large tractors. Different regions and segments are appropriately associated with the relevant products and companies, which has helped in understanding the competitive scenario of the tractor industry in detail. The cost analysis and profitability presented in the report will help the reader identify the critical cost items and their trends. The company section in the report provides detailed profiles of 3 players in the industry, including their financial and operational data and product range. The report also provides manufacturing process and technical aspects.
This report presents forecasts of domestic as well as export sales for each of the next five years till FY16, separately for all the segments. The authors have developed a robust model for forecasting domestic sales. It takes into account overall tractor penetration in the country, agriculture credit disbursements and agriculture sector GDP. The report also gives insights on the outlook on profitability after considering important cost components like raw materials and selling and distribution expenses.
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