Raunak Varma, managing director of CNH Industrial India, told ET that for its local growth, the company plans to invest around ₹1,000 crore in manufacturing and supplier capacity, new product development and expansion of services. financial services. “By not participating in the core of the market, we are not doing justice to the organization and to the shareholders. We are making a strategic shift to have a tailored portfolio for the 25 to 50 horsepower range. We are not looking at a commoditized product, we will offer an application specific product,” Varma added.
Present in the country for over two decades now, CNH is already profitable with a turnover of over ₹6,500 crore. All of its investments for India will be self-funded, Varma said.
In addition to playing a larger global role, CNH is looking to capitalize on the growing agricultural business.
The company had recently bolstered its offerings in the 45 and 49.5 HP segments. With its entry into the under 30 horsepower space, CNH will be present across the full range of products available in the country.
Besides portfolio expansion, CNH plans to double its tractor manufacturing capacity to 1 lakh units. The capacity was already expanded to 65,000 units in April; by the end of 2023, CNH wants to increase it to 75,000 units, before increasing it to 1 lakh units per year, given that India will serve both the domestic market and exports.