53 light industrial and construction equipment
including backhoes, excavators, forklifts, miniloaders, and telescopic handlers. Besides, it offers financial services in the US and Canada through CNH Capital America.
In order to invigorate its brands and better respond to customers' needs, the company took an important step in 2005 of reorganising its global brands. For agricultural equipment its brands are Case IH and New Holland, whereas for construction equipment it is focusing on Case and New Holland Construction brands. Four separate operating divisions, each with its own president, have been formed under these brands. As an extension of its focus on its key brands, the company is also channelling its efforts in support of its dealer network by enhancing the size of its marketing and sales team, training as well as CNH is one of the largest makers of agricultural
equipment and ranks third in construction equipment manufacturing in the world.
Global overview of CNH Global
CNH Global was established as New Holland Machine Company in 1895 in Pennsylvania as a manufacturer of feed mills and other farm related products. Its history is dotted with multiple ownership changes and complex process of integration of numerous companies. It was first acquired by Electronics specialist Sperry Corporation in 1947 and renamed as Sperry New Holland. About a decade later Ford Motor Company acquired it in 1986 and renamed it Ford New Holland. Its final buyer was Fiat in 1991, which named it N H Geotech, later re-christened as New Holland in 1993 thus marking the end of a transition period. In 1999 New Holland bought Case Corporation to form CNH Global NV, with New Holland as a brand under its fold.Today Fiat owns 90 per cent stake in the company.
CNH is one of the largest makers of agricultural equipment and ranks third in construction equipment manufacturing globally. Its farm equipment division, comprising 60 per cent of aggregate sales, includes tractors, harvesters, sprayers, and hay balers.The company also makes
NEW HOLLAND TRACTORS (INDIA) PRIVATE LIMITED
Company Mode of presence in India Year of entry Key business
New Holland Branch Office 1949 Shipping
Tractors (India) Pvt.. Ltd..
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has increased since the company's inception in the 35-75 HP (horsepower) range and today features eleven models and several variants to meet different customer needs and application requirements.The company's manufacturing unit in India has already achieved 90 per cent indigenisation, including its engines in 55-75 HP range under license from IVECO.
New Holland also exports from India fully-built tractors to about 40 countries in North America, West Asia, Africa, Australia, South-East Asia and Latin America. Besides this, it exports sub-assemblies and other tractor parts to the production facilities of its parent company, CNH Global, across the world.
New Holland has 375 dealers across the country and it has consistently worked to develop its presence in the southern and eastern markets.
It has entered into tie-ups with various banks through its network of dealers, which is expected to help meet the farm investment credit
requirements of Indian farmers. It has an employee strength of around 600 employees in India.The company has been registering significant growth ever since its entry in Indian market as it market share grew to 5 per cent within a few years of its operations.The company expects to clock revenues of more than Euro 186.4 million in 2007, with export sales constituting approximately 30 per cent of revenues.
The main area of thrust for New Holland India currently is to improve the efficiency and plant utilisation rather than adding further capacity.The company wants to consolidate its product portfolio further so as to have product offerings in all the segments in tractors above 30 HP. It has plans in place to successfully ward off competition not only in those segments where it has a strong presence, but also in all the remaining segments.
technical support to the dealers. It is making strong investments in enhancing its world-wide
replacement parts operations.
The focus countries today are the growing markets of Latin America, Eastern Europe, China and India, even though North America and Europe contribute 51 per cent and 38 per cent to sales respectively.
After a history of more than 110 years, CNH Global has achieved a sales turnover of more than Euro 10.6 billion and a net income of Euro 138.1 million in the year ending December 2005. Globally it employs more than 25,400 people. It has
manufacturing operations in 16 countries and sells world-wide through about 10,800 dealers.
CNH Global in India
CNH Global formed a 100 per cent subsidiary in India, New Holland Tractors (India) Private Limited, to expand its reach to the country. It entered India in 1998 with its production facility of 30,000 units at Noida (Uttar Pradesh).The product portfolio
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55 Focus on technology
Technology remains a major thrust area for the company to improve the efficiency of its operations and cut costs. It has deployed a web-enabled solution complemented with SMS, to allow flow of information between the company and its personnel involved in marketing, sales, and maintaining dealer contacts on field.The company has extended the scope of the system to enable booking of orders through SMS, apart from web based applications.
It has automated its employee portal and implemented Baan HR for the purpose of
monitoring performance and tracking recruitment.
Future plans
New Holland India plans to expand its operations in the country with a strong focus on the domestic market as well as creating an important global source hub for small tractors. It does not want to confine its presence to the tractor market and intends to add some of the products from its global portfolio in India.These include farm machinery and agricultural equipment, such as sugar cane harvesters, balers, mowers and implements for industrial applications. In short, it is aiming to become a major farm equipment company in India over the next few years.
Key success factors in India
Strategic tie-ups
New Holland Tractors India has entered into tie- ups with various banks and financial institutions to offer attractive tractor retail finance facilities to the farmers.These initiatives have resulted in a win-win situation for all the stakeholders as farmers gain access to latest technology and easily available finance, the financier gets to meet its farm lending target and New Holland gets ready access to a wide market.
Further, the company has adopted an approach of tying up with strong regional players as they are well aware of local needs and together they can offer customised products to the farmers. In July 2005 the company entered into a tie-up with Trichur (Kerala) headquartered Dhanalakshmi Bank to offer tractor finance through branches of the bank in Kerala,Tamil Nadu, Karnataka and Andhra Pradesh. It has similar arrangements with Dena Bank (since September 2006), Bank of Baroda (since November 2005) and Indian Overseas Bank.
Under its tie-up with Indian Overseas Bank, the farmers will be identified jointly by the bank and the company and it will assist them in the selection of right tractor model ranging from 35 to 75 HP, best suited for their specific farm needs.
Product innovation
New Holland is consistently launching new
products with improved features in a bid to cover a wider customer base in the domestic market.
Today its product portfolio spans the 35-75 HP segments in tractors.The products are competitively priced irrespective of the functionality and engine power. It launched six new models of tractors in September 2005.
Two of these models marked the entry of the company into so far unprecedented segments.
CNH's India operations
• Entered India in 1998 as a 100 per cent
subsidiary to manufacture and sell tractors in India
• Production facility in Noida has achieved 90 per cent indigenisation; network of 375 dealers across the country
• Exports of fully-built tractors made to about 40 countries from India, exports of sub-assembles and tractors parts made to other production facilities of CNH
• Exports expected to constitute as much as 30 per cent of its gross revenues of Euro 186.4 million in 2007
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