Saturday, April 27, 2013

Lamborghini Tractors' India market foray imminent; model details yet to emerge


Last Updated : 22 April 2013 at 11:00 IST
Back in 1950s Mr.Ferruccio Lamborghini, the yet-to-be-founder of legendary Lamborghini cars, while driving his newly owned Ferrari, felt that a change in clutch system would significantly improve the performance of the Ferrari car. Mr.Lamborghini happened to be a tractor manufacturer and an engineer who also owned a Ferrari.
Being a devoted customer, Mr.Lamborghini sought an appointment with Mr. Enzo Ferrari—great and exotic car manufacturer. Mr. Lamborghini explained his idea and Mr.Ferrari quipped that Lamborghini better mind his own business of tractors.
Lamborghini fumed and decided to give an answer to the insult, action-packed ; he assembled his team and they assembled a new car from scratch with the idea incorporated. Thus born the Lamborghini cars! The rest is history as the race between arch rivals continue. 
Later on Lamborghini's descendents exited tractor business and concentrated on exotic cars.
SAME Deutz-Fahr India and Lamborghini
Bhanu Sharma, the Managing Director of SAME Deutz-Fahr India who owns the Lamborghini tractor brand, tells me that there are three things that he would look for in a potential Indian buyer; one of them being money and the other two being the prospective buyer's understanding of technology and affection for brand.
“See, I have seen farmers in India, especially in Punjab who drive Mercedes Benz and BMWs. They belong to the top 1% of farmer community who are rich and knowledgeable (of brand). These new generation farmers are our target group,” said Bhanu Sharma who knows the pulse of farmers' India.
The target group makes sense. At least 65% of 1 billion plus Indians sustain on agriculture. “One percent is a huge number, believe me,” he said.
“We also target hobby farmers, intellectuals or professionals who are rich, who lead a hectic life and those who also slip out quietly into their weekend farming pleasures in some farm land..they may not have the time to repair or cater to the maintenance of tractors and it is where Lamborghini tractors come in,” he noted.
“So you are trying to say that Lamborghini tractors require less of maintenance,” I asked. “That is the technology,” he said.
And yes, catering to niche market, Lamborghini tractors have “no competition in India,” as of now.
He noted that slowdown in the global economy has not affected Lamborghini tractor prospects. “First of all, we cater to a niche sector and agriculture is least affected by slowdown,” he said. He says he is “in general positive about the health of economy,” even as he notes that there are a few countries in Europe “which are not going good.”
He said abundant monsoons can significantly enhance the Indian prospects of Lamborghini tractors. He was optimistic that “Indian agriculture sector would perform well this year too.”
Global presence
SDF Group is one of the world’s leading manufacturers of tractors, combine harvesters, farm machinery and diesel engines. It rolled out the world’s first tractor, mounted with a diesel engine in 1927 and its products are marketed in 144 countries under famous and prestigious brands like Deutz-Fahr, Lamborghini, Hürlimann and Grégoire. SDF India is a 100% owned subsidiary of SDF Group.
Lamborghini tractors have a mother plant for tractor manufacturing in Italy and plants in Germany, India, Turkey, Croatia, Russia and a Joint Venture in China as well.
“Where does he find it easier to do business,” I asked him.
“Europe is Europe,” he answered and added that India too provides for a great business climate.
My final question: Legendary investor Jim Rogers said that one day farmers would be the ones who would be driving Lamborghinis and Ferraris. I am sure that he was not referring to tractors. But can tractors be a beginning?
“In India, yes...” he said.
While Bhanu Sharma says that no Indians own the Lamborghini tractors now--800 exotic tractors manufactured in Ranipet of Tamil Nadu was exported to Europe and Malaysia--he does plan to plough the Indian fields shortly.
He is however mum on the models that he plans to roll out and the price tag. The company is yet to take a decision in this regard, he said.

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