Download - Group 3_Vanraj Mini–Tractors
Indian Institute of Management Indian Institute of Management IndoreIndore
Case Analysis:Case Analysis:Vanraj Mini – TractorsVanraj Mini – Tractors
Is Small Beautiful?Is Small Beautiful?
Submitted By:
Group 3
Abhinav Raj | Amit Pant | Bhavya Negi | Ishu Kumar
Under the Guidance of:Prof. Pratik Modi
Vanraj – Mini TractorVanraj – Mini Tractor Innovation by Bhanjibhai Nanjibhai Mathukia of kalawad
village
Made by a junk jeep powered by 10HP engine
Spotted by GIAN & SRISTI
In oct, 2004 three technopreneurs acquired the technology and floated M/s Pramal Farmatics to manufacture “Vanraj”
It has a payload capacity of 1 to 2 tonnes
Can serve the agricultural needs as well as transportation & industrial requirements
Advantages of VanrajAdvantages of Vanraj
Affordability – it is ranged around 1.9 lacs with a comparable life span as that of high capacity tractors
Lower cost of operation – because of low engine size it consumes less fuel per hour
Ease of repair and maintenance – single piece casting with simple design makes vanraj easyto maintain and repair
Advantages of VanrajAdvantages of Vanraj
Smaller wheelbase – it makes vanraj easily maneuverable and it can reach small corner where big tractors can manage
Adjustable Wheelbase – It is the first tractor that can be converted into three wheel drive which is useful in different types of crops
Power take off(PTO) Point – its engine can be used as a power generator
Advantages over the mini Advantages over the mini tractorstractorsVanraj had competition with 3 other brands
of 10HP tractors i.e. Field Marshal, Trishul and captain
These were assembled tractors and costs around 1.7 lacs as compared to 1.9 lacs
Handling of vibration and shocks
Power take off point
Three wheel convertible
Tractor IndustryTractor Industry It started in 1962, with licensed capacity of 11000
tractors
Since then it has grown to 2.5lakh unit per year by 2004-05
India have huge potential market as currently we have 8 tractors per 1000 hectares of land
Most competitive industry with 12 major national brands and 4 major international brands
Despite the robust growth in recent years, major player are still operating with 50% capacity utilization
Market SegmentationMarket Segmentation The market was segmented
according to engine horsepower
< 20 horsepower was considered as mini-tractor segment and contributes to only 1 %
20 to 30 HP represents small tractors which contributes to 26% of market
31 to 40 HP was the largest segment with 55% market share
41 to 50 HP were large tractors with 15% market share
Factors affecting demandFactors affecting demandHeavily dependent on agriculture
Level of agricultural production and Minimum support price(MSP) causes an effect on tractor sales
Ease of availing the tractor finance is also one of most important criteria
Apart from this the purchase decision was based on the HP, design, price, fuel efficiency and ease of maintenance
ProblemProblemWhich would the most
appropriate target market and strategy for Vanraj?
SuggestionsSuggestionsVanraj should be targeted towards the
small and marginal farmers segment◦ High HP tractors remain underutilized so low
HP tractor will be preferred
◦ Small and medium farmers segment have wide base
◦ Less competition
◦ Vanraj will serve many purpose for small and medium farmers
◦ Lower selling price will lessen the default rate
THANK YOUTHANK YOU