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NEW DELHI: Shares of Escorts Ltd were trading higher after ET reported that the company is aiming to transform into a complete farm solutions company from just a manufacturer of tractors, the market for which is expected to plateau in the coming decade.
As part of the strategy, the Faridabad-based company is getting into the farm mechanisation space and has announced a shared tractor platform called Traxi and plans for autonomous tractors.
Escorts on Thursday showcased its autonomous farming solution at the national capital in partnership with Motherson Sumi, Reliance Jio Infocomm, Wabco and Microsoft among others.
Escorts said these were the proofs of concept which could make their way into the Indian market in three-four years.
The scrip was up 2 per cent at Rs 804.50 at around 9.55 am (IST), while the BSE Sensex was down 0.17 per cent at 38,176 at around the same time.
“The idea is to adopt next-generation digital vehicle technologies aimed at precision-based farming in order to help them (farmers) improve their yield,” managing director Nikhil Nanda told ET.
“The company aims to provide end-to-end solutions for farmers” from sowing to harvesting, he said.
The company also expects the tractor industry volumes to grow 12-15 per cent, compared with the previous forecast of 9-11 per cent.
The prime reason for the company to raise the guidance is an increase in government subsidies and support prices of crops that have boosted the cash on the hands of farmers.
