Rajkot based mini tractor manufacturing company Caption Tractor Privet Limited (CTPL) is planning to invest close to Rs 500 crore to expand its mini tractor and agriculture equipment division in the coming five years.
“We have planned to invest around Rs 500 crore in phased manner. Once we get land for our new project, the company will start its expansion projects at the earliest” said Rajesh Patel, director, CTPL. The company is looking for land in Rajkot and is likely to get it by next year.
CTPL currently has a production capacity of 200 tractors per month. It plans to expand the capacity to 1,000 tractors per month under the capex programme.
The company is also planning to launch three new mini tractor models, Patel said, “We will introduce three new models of mini tractors with capacity of up to 25 horse power by end of 2013", he added.
CTPL plans to fund the expansion mainly from internal accruals and some borrowings. It, however, does not have any plans of going public at the moment.
The Rajkot based tractor player forged a strategic alliance with The Tractors and Farm Equipment Limited (TAFE) in March this year, according to which, CTPL is providing mini tractors to TAFE that would sold by the latter across India and abroad. Moreover, under the alliance, TAFE will manage CTPL's present distribution network.
The company has network in eight state of India also export to the 10 countries including Australia, and African countries. It manufactures 30 different types of agriculture equipment.
CTPL is one of the early entrants in the mini-tractors space. The company started research and development (R&D) in 1994 and the first successful mini tractor with 9.5 horsepower engine was rolled out in 1998.