Vanraj Tractor Case Analysis

VANRAJ MINI-TRACTORS CASE STUDY

By Ansuman Rath (u310009) Chandrashekhar Mishra (u310013) Harihar Dubey (u310020) Neeraj Kumar (u310030) Prabin Kumar Nath (u310036) Prachit Chaturvedi (u310037) Shanu Prasad (u310045) Sudheir Kumar (u310051) RM Course PGDM-RM-I-2011

Submitted to

Prof. Jeevan Arakal

Xavier Institute of Management Bhubaneswar

Q.1) What is the case situation, what are the key decisions that have to be taken by Mr. Jagdip Trivedi? Ans. India has the 3rd largest gross cropped area after the US and Russia. But the problem with the Indian scenario is that most of its landholdings are highly fragmented. Most of the farmers are indulged in subsistence farming resulting in low productivity. But the Indian farmers were very quick to understand the importance of using tractors in agriculture. The majority of the initial sales were recorded in the states of Punjab, Haryana and Uttar Pradesh. And the majority of the tractors were of the range 30-50 HP. The large farmers of these states purchased these high capacity tractors to plough their fields. But to obtain the maximum utilization out of the investment, they had to go for other activities. In many cases the farmers were not capable to get the maximum output. This was the reason due to which many of the farmers didn‟t go for purchasing tractors as they didn‟t have the requisite landholding size to support it. So there was a big market for the mini tractor manufacturing companies to manufacture and market their product in the small and marginal farmers‟ category. Nearly 82% of the total landholdings were in the hand of small and marginal farmers. No big company in India has ever tried to explore the mini-tractor segment consisting of less than 20 HP engine. A small farmer by the name Banjibhai Nanjibhai Mathukia of Kalawad village in Junagath district of Gujarat developed a new tractor. He has been his tractor with his three brothers which was not enough. So he bought a jeep and mounted a 10 HP...