38
focused on establishing itself as one of the leading marketing and distribution companies of
agricultural equipment in North and South America, providing complete solutions for its customer base backed by excellent product and service support.
Overview
Farmtrac North America, LLC
FNA was originally incorporated in 1946 as Long Mfg. NC Inc. as a manufacturer and distributor of agricultural equipment. In 1997, Escorts established its operations in the US through a distribution agreement with Long Mfg.
to establish a long-term commitment in the North American market, Escorts initiated the process to acquire Long Mfg. and currently owns 100 per cent of the stock of FNA.
While FNA's primary focus is on tractors, it also provides complete solutions for its customers needs. FNA has made significant investments in the United States in the production of tractor attachments such as front-end loaders and backhoes.This provides Farmtrac with a unique competitive strength in the market.
Farmtrac has the largest dealer network among all non-major brands of tractors in the US.The company currently distributes its products through a network of around 300 dealers spread across 36 states in the US.The company had close to 200 employees as on December 31, 2006. In the last fiscal, it generated US$ 85 million in revenues from its US operations.
Company Background
Farmtrac is part of the industry conglomerate, Escorts Limited from India, which offers diversified products and services such as manufacturing of tractors, construction and material handling equipment, and automotive components.While Escorts pioneered tractor manufacturing in India, prior to the mid-nineties, under a joint venture with the Ford Motor Company, it also
independently manufactured a line of tractors based on Ford’s technology.Today, the company has the single largest tractor manufacturing facility in the world with annual production capacity exceeding 100,000 tractors. Its acquisition of US-based Long Mfg. N.C. Inc. (now FNA) paved the way for the company to develop and market the Farmtrac line of tractors for the US market.
Global Footprint of Farmtrac
Farmtrac tractors are marketed in all major countries of the world. It has a well-established manufacturing setup in India, Europe and the USA.
The company's brand of tractors is the fastest growing in many countries such as Australia, Poland, the USA,Turkey, Chile, Ghana, South Africa,
Pakistan, Nepal, Sri Lanka and Malaysia.
Farmtrac
in the United States of America
Mode of Operation
Farmtrac operates in the US through its subsidiary, Farmtrac North America, LLC (FNA). FNA is
FARMTRAC
India_US book fin_Part1.qxd 6/15/07 10:16 PM Page 38
39 Korea for compact tractors.The company has
gained market share and a large customer base with such strategic alliances.
Future Plans
Farmtrac has plans to expand its distribution network and evolve as a major player in the US, Canada and Latin America.The company plans to supply its augmented product line through its extensive network and gain market share.
It also plans to provide the necessary push to its marketing and branding efforts so as to expand its customer base in the target markets.
Success Factors
Qualitative Investments
Farmtrac has initiated a process of upgrading and expanding its manufacturing facilities at Tarboro, with an investment of US$ 10 million.This
investment enables it to be among the select global companies that are investing aggressively in tractor manufacturing facilities in the US.These investments will also enable the company to evolve as a major player in the US tractor market.
Enhanced Product Portfolio
Farmtrac is the only non-major US based tractor manufacturer, which offers a wide product portfolio, ranging from 27 to 114 horsepower.
The company not only has an extensive range of tractors but also provides high-quality tractor attachments such as front-end loaders, backhoes, disc mowers, rotary tillers, grooming mowers, fertilizer spreaders, sickle bar mowers, etc.
This enables the company to increase its presence in the US tractor market
Aggressive Sales and Marketing Initiatives Farmtrac has been active in undertaking sales and marketing initiatives in the USA.The company has undertaken aggressive brand recognition initiatives to promote its products in the US.The company has identified major publications and a range of advertising tools for its branding initiatives. It also participates in national as well as regional farm shows to create brand awareness and increase its marketing efficiency.
Strategic Alliances
Farmtrac has also been very active in forging alliances with companies to increase its presence and augment the product offering.The company entered into an alliance with SAME Deutz-Fahr Italia S.p.A to market its entire range of tractors in the US and Canada. FNA also has a successful relationship with LS Cable (formerly LG) of South
India_US book fin_Part1.qxd 6/15/07 10:16 PM Page 39
