TRACTORS: TESTING TIMES
Article Abstract:
The tractor industry is hit by the economic slowdown. It has inventory levels of 20 days. The industry's growth rate has declined to three percent during the nine months period ended December 31, 1998. It was 15-19 percent during the 1996-1997 and 1997-1998. The tractor demand depends on agricultural growth. The agricultural production had been affected due to vagaries of monsoon during 1998. The agriculture production as a result declined by 4.5 percent. As a contrast the tractor industry is witnessing increasing capacity. Companies like Greaves-Same, New Holland and Larsen & Toubro John Deere are setting up fresh capacity. The total capacity is likely to be 441,500 units in the next two years against a demand of 290,000 units. The capacity utilisation will be 66 percent. The 21-40 HP range accounts for 80 percent of tractors sold. New Holland tractors has a capacity to produce 18,000 tractors in the above 50 HP segment. It is planning to produce 50 HP tractor by May 1999 and 35 HP tractor by 2000. Escorts plans to launch 60-70 HP tractors and TAFE 75 HP tractors for corporate farms. The main growth for the tractor industry comes from the 31-40 HP segment. The exports, during 1998, increased to 3,838 from 2,501 in 1997. The tractor penetration in India is low. It stands at 10 per 1,000 hectares against 40 per 1,000 hectares of developed countries. Since farmers go for multiple cropping, huge potential for tractors exists. As the cost of tractors in India is comparatively cheap, exports too offer great scope. (rk)(psr)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1999
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SOUTHERN PETROCHEMICAL INDUSTRIES CORPORATION
Article Abstract:
Southern Petrochemical Industries Corporation (SPIC) has a facility at Tuticorin in Tamil Nadu to produce urea and di- ammonium phosphate (DAP). It diversified into shipping in 1985. It bought out the chlor alkali plant of Kothari Industrial Corporation in 1986. It has a liquefied petroleum gas (LPG) bottling unit and has set up a 1,250 MMU per annum Pencillin G facility at Cuddalore in Tamil Nadu. Fertilisers account for 80 percent of the revenue. It has 1,600 tonnes per day (tpd) capacity urea plant and two 850 tpd DAP plants. It also produces phosphoric acid and sulphuric acid, trades in imported fertilisers and pesticides. Its chlor alkali business accounts for seven percent of the revenue. In 1997-98, its sales have increased by 13.8 percent to Rs20,610 million and its net profit has risen by 8.7 percent to Rs789.6 million. (rk)
Comment:
Has a facility at Tuticorin in Tamil Nadu, India to produce urea & di- ammonium phosphate
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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