exploring new business market for farm equipments in anand district rajput bab a lukuma rr ajput m

78 Pages·2015·2.56 MB·English

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EQUIPMENTS IN ANAND DISTRICT
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RAJPUT BABALUKUMAR SHRINIVAS

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. B. Tech (Agricultural Engineering)
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INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE
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ANAND 388 110

MAY 2015
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A EXPLORING NEW BUSINESS MARKET FOR FARM
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EQUIPMENTS IN ANAND DISTRICT
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A PROJECT REPORT

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RAJPUT BABALUKUMAR SHRINIVAS
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Reg. No. 04-2303-2013
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MASTER OF BUSINESS ADMINISTRATION

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(INTERNATIONAL AGRIBUSINESS)
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Dr. SANJIV KUMAR

(Assistant Professor)

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3 INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE

ANAND AGRICULTURAL UNIVERSITY
ANAND - 388 110
MAY 2015
INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE
ANAND AGRICULTURAL UNIVERSITY
ANAND -388110

CERTIFICATE

This is to certify that the project entitled “Exploring New Business Market
For Farm Equipments In Anand District” of M.B.A (International
Agribusiness) embodies bonafide research work carried out by Rajput
Babalukumar Shrinivas under my guidance and supervision and that no part
of this project work has been submitted for any other degree. The assistance,
guidance and help received during the course of investigation have been fully
acknowledged.

Place: IABMI, Anand (Dr. Sanjiv Kumar)
Date: Advisor
DECLARATION

I hereby declare that the project entitled “Exploring New Business Market
For Farm Equipments In Anand District” submitted for the M.B.A
(International Agribusiness) degree is my original work and this has not formed
the basis for the award of any degree, associate ship or other similar titles.

Place: IABMI, Anand Name: Rajput Babalukumar Shrinivas
Date: Reg. No: 04-2303-2013
ACKNOWLEDGEMENT

Indeed the words at my command are not adequate, either in the form of spirit,
to convey the depth of my feeling of gratitude to industrial guide Mr. Nakul
Nawathe, Regional Manager, Lemken India Agro Equipment Pvt Ltd. for his
scholastic guidance, constructive criticism, constant encouragement and
pertinent suggestions in planning and execution of this project.
I have an enormous pleasure in expressing my deepest sense of gratitude and
humble indebtedness towards Mr. Sanjay Chhabra, Sales Service & Marketing
Head, Mr. Shripad Takalkar, HR Head, Mr. Kapil Bajaj, Senior Manager,
Lemken India Agro Equipment Pvt Ltd. for providing me a chance to do project
work and to provide necessary information needed during the project work.
Their steadfast inspiration, expert guidance, painstaking effort and keen
abiding interest during the entire research work.
With great reverence, I express my warmest feelings with deepest sense of
gratitude to my Major Guide Dr. Sanjiv Kumar, Assistant Professor,
International Agribusiness Management Institute, AAU, Anand. I have no words
to express my heartfelt thanks for his illuminating guidance, unfailing
encouragement, scholarly suggestions and constructive criticism during the
course of my project work and preparation of this report. With profound
respect, I extend my gratitude to Dr. R. V. Vyas, Principal & Dean,
International Agribusiness Management Institute, AAU, Anand for providing
necessary facilities during the project work.
May I make this opportunity to thank all the members of my advisory committee,
Minor Guide Dr. Ritambhara Singh and Dr. M. R. Prajapati, Assistant
Professor, International Agribusiness Management Institute, AAU, Anand. for
their constant attention, formulation of curriculum and offering valuable
suggestions throughout the period of project.
I feel imperative to express my sincere thanks for the generous help received
from Dr. R. S. Pundir, Associate Professor, Prof. T. S. Shibin, Assistant
Professor, Prof. Y. A. Lad, and Prof. D. R. Vahoniya, Assistant Professor,
Prof. Shakti Panigraghy, Assistant Professor, International Agribusiness
Management Institute, AAU, Anand for their kind co-operation and valuable
help during the project work.
I am fortunate to have good friends Jayendra, Vaibhav, Atul, Kirit, Mihir,
Jigar, Kaushal, Manasukh, Brijesh, Forum, Maitri and all other my
classmates who have co-operated in this endeavor and partnership by
contributing significantly to my academic success. I am thankful those who
rendered their co-operation directly and indirectly.
It is difficult to find words to express how much gratitude and heartfelt respect I
have for my beloved Father Mr. Shrinivasinh Rajput, Mother Mrs.
Mithaleshben Rajput and my loving sister Arati Rajput and best friends
Bhagatsinh Rathod and Shreya Prajapati for their continued encouragement
and inspiration throughout the Study. Last but not least, I praise the almighty
living god who has been faithful and enlightened me to make this great
achievement and success in my life.

Place: IABMI, Anand
Date: Rajput Babalukumar Shrinivas
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ANAND DISTRICT
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Name of Student Advisor
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M Rajput Babalukumar Shrinivas Dr. Sanjiv Kumar
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R Reg. No: 04-2303-2013 Assistant Professor
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A INTERNATIONAL AGRI-BUSINESS MANAGEMENT INSTITUTE
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ABSTRACT

Availability of adequate farm equipment is very crucial for timely farm operations
for increasing production and productivity and handling the crop produce to reduce

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losses. Agriculture machinery makers are bullish on Indian market as growing
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. shortage of farm hands and smaller land holdings are forcing many farmers to
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( mechanize their farms, allowing multinational agri implement companies to tap
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T into Indian market. Today, a large number of Chinese (Zhejiang Sifang), Japanese
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R (Kubota & Mitsubishi), American (John Deere), Italian (New Holland) and
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Germany (Lemken) firms have started business in Indian market.
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N The sale of tractors is on the rise and during 2012-13 about 30,000 tractors were
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L sold in Gujarat by different tractor manufacturers. Some of the farm equipments

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manufacturers such as Shaktiman, Kubota, Mahindra, Tafe, Maschico, Khedut
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agro, Dharti Agro, VST and few more local manufacturer in Gujarat are making
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good quality rotavators and selling more than 1000 rotavators per months. There is
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N good scope for introducing improved equipment for performing various farm
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The project was under taken for Lemken India Agro Equipments P Ltd. with the
objectives of studying the market status of different farm equipments suppliers in
the study area; to identify potential dealers for Lemken India Agro Equipment P
Ltd.; and to carry out dealers perception survey for selected farm equipments of
different suppliers. For the study, primary data were used to achieve the stipulated
objectives while using sample of 200 agri inputs dealers of various talukas of
Anand district. The research included interviewing of agri input dealers by means
of pre-structured survey schedule regarding their views on marketing system, and
analyzing their responses with the help of statistical tools. It also included creating
awareness and assessing the interest level of agri inputs dealers towards the
company by delivering presentation about its equipments.
There are more dealers present in Anand, Tarapur, Khambhat and Ankalav while
less in the other talukas and majority (86%) are having business as a
proprietorship. Majority of the dealers (47%) belong to the seeds, pesticides and
fertilizers category and very less are dealing with hardware (9%). Around 62%
dealers procure agri inputs products on cash & credit basis and 55% dealers sell
their products on cash basis only while 44% dealers sell the products by using both
cash & credit mode. It was found that turnover of very few dealers (5%) ranges
between 80-100 lacs while others were having less turnover. Very few dealers
opined demonstration (21%) as preferred promotional tool. Only 9% farm
equipment dealers are aware of Lemken India.
Majority of the dealers prefer Shaktiman equipments followed by local
manufacturer, Maschico equipments, Kubota equipments, Lemken and other
companies equipments. Though Lemken is new farm equipment company, some of
the dealers preferred it (after presentation) which is a positive sign for the
company. Among all the input dealers, majority of tractors and farm equipments
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dealers earn more than 5 lac per annum, so company should focus on the tractors
and farm equipments dealers due to their high annual income for future
relationship for dealership.
Several predefined attributes like trust on company, business expansion nature and
diversification of business attract dealers more towards Lemken India. Those who
were ready to become company dealer were also ready to spend around 10 lac
rupees, ready to follow company policy and also manage required (300 sq.ft) space
too. Non-interest for other dealers were because of high cost of the equipments,
lack of sufficient space for show room and diversification from the existing
business.
After presentation of the company and its products, dealers showed more
preference towards cultivator followed by MB plough and power harrow.
According to dealers, good quality and unique design of the Lemken products will
attract new customers and capture good market in future while high cost of the
products and lack of awareness of products may hinder the sale of Lemken
products.
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LIST OF CONTENT
Sr. No. Particulars Page No.
ABSTRACT i
LIST OF CONTENT iv
LIST OF TABLES vi
LIST OF FIGURES vii
LIST OF ABBREVIATION ix
1 INTRODUCTION 1-20
1.1 Background Of The Study 1
1.2 Indian Agricultural Profile 1
1.3 Industry Overview 3
1.4 Market Overview of Major Machineries 5
1.5 Trends in Indian Agriculture 9
1.6 Subsidy in Agricultural Machinery 10
1.7 Company Profile 15
1.8 Objectives of The Study 20
2 REVIEW OF LITERATURE 21-24
3 RESEARCH METHODOLOGY 25-28
3.1 Area of Study 25
3.2 Source of Data 25
3.3 Research Design 25
3.4 Research Instrument 28
3.5 Analytical Tools 28
3.6 Scope of the Study 28
3.7 Limitations of the Study 28
4 RESULTS AND DISCUSSION 29-50
4.1 Dealers Age Group 29
4.2 Gender 30
4.3 Sample Distribution Among the Different Talukas 30
4.4 Type of Business 31
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