Vanraj Tractors

Topics: Agriculture Pages: 1 (282 words) Published: January 8, 2009
Dr Mukund Kamath

The major competing segments for Vanraj were small farmers, large farmers and horticulturists. The government was one more sector but the tractors would be used in select towns such as Class C and some Class B. However this segment would have to be treated as institution business model and would require a lot of data on the usage and effectiveness front prior to securing the deal, which Vanraj currently did not have.

Although Mini Tractors had just 1% share of the tractor segment, it was estimated that the small farmers still using bullocks a larger part of untapped market

Although the cost of buying and maintenance per year was over 10 times that of a pair of bullocks as shown in table below, the advantages of Vanraj could be explained through the gram panchayat to the farmers such as; •Longetivity of engine compare to bullocks

More Work capacity and usage per day
Auxillary use of Power Point from engine for running irrigation etc…on an average the cost/unit of electricity was Re1/unit, the hourly cost of running an irrigation system would be Rs 60, while that of the tractor would be Rs 30 (1.5L of diesel=Rs 30). •Thus cost of additional electricity could be saved (halved) •Also the plough would not have to be bought as the rotavator was free along with the tractor thus Additional saving rs 5000 + 5 hrs were reqd to plough an acre compared to 8 with bullocks. The horticulture segment and mini tractor segments could be easily tapped as both segments required value for money which was offered by the Vanraj tractor as compared to mini or big tractors.
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