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Home arrow Business News arrow Same Deutz-Fahr's Ranipet plant records 70% increase in production
Same Deutz-Fahr's Ranipet plant records 70% increase in production Print E-mail
Written by Krishna Kumar   
Wednesday, 17 August 2011
Chennai: Same Deutz-Fahr Group S.p.A., a manufacturer of tractors and agricultural equipment, registered a 50 percent growth in sales in India last fiscal. The SAME engine localisation program in India is ploughing ahead at a quick pace, meeting objectives in terms of both quality and volume.

The company's Ranipet plant had an extremely positive 2010: production increased by 70% year-on-year, confirming the excellent growth trend and making brisk progress towards the next three-year period’s goal of 10,000 tractors. Production of models destined both for local markets and for export was also strengthened.

The role of the Indian plant as a manufacturer of tractors both for the local market and for export and European markets was further strengthened and developed, proving that this was an excellent strategic choice for the low power range with basic features. A sales team devoted to export sales was created, with the objective of rapidly increasing the importance of this sector and the value of its turnover compared to our traditional channels of trade.

In India the local organisation was reviewed, with a strengthening of the sales team and a new distribution strategy. This identifies consolidation of the dealer network in strategic regions as a key tool for growth and success in the domestic setting.

The Ranipet site, which received an important investment in 2009 allowing the total area to be doubled, took on the first work to improve production-logistics processes in 2010. Both the spare-parts storage and technical assistance areas were moved to the newly acquired and remodelled facilities. The year 2011 awaits the construction of a new training centre and a test track which will meet the ever more challenging needs of the Indian market.

While the production of tractors continues to represent the heart of production, the lines dedicated to EURO 1, 2 and 3 engines have an equally important role: those which are not destined for the Indian market are exported and fitted in tractors produced in Treviglio.

On the quality front, the year stood out for the renewed efforts aimed at bringing the Indian plant into line with European methods and standards. The objective achieved was confirmation of ISO 9001:2008 certification from the certification body CERTO.

To deal with issues of both capacity and reduction or containment of costs, on one hand the long-term strategic partnerships with major suppliers have been reinforced in order to give maximum advance notice of common activities, while in other cases resourcing activities are being relied on, principally allocating supplies in Eastern-European countries, China and India.

The lack of production capacity, particularly in India, reduced savings and forced a more attentive and selective approach in sourcing components.

In India the strategic resourcing of components for SDF EURO 3 engines was pushed forwards, and will be finished for most components during 2011. This project completes the already finalised total sourcing activities for EURO 1 and 2 engines. Tools such as continuous benchmarking and target pricing analysis were also used both for current products and new developments. These activities have given positive results, particularly inside new component development processes where the role of the supplier and the company complement each other allowing the best results to be reached both in terms of specifications and costs. Indirect purchasing has seen a centralisation-based consolidation of the organisation which has allowed comparison and arrangement of a wide supplier base, aiming at a significant increase in efficiency. In 2011 the company is expecting high volatility with shorter cycles than in the past, with an increase in volumes due to the increase in prices of agricultural commodities.Therefore planning and management of the supply chain, long-term strategic partnerships and outsourcing activities to seize any opportunities which present themselves will take on an ever more important role.

As a part of its R&D plans , the development of specific platforms through the assembly and integration of solutions supplied by the component design areas will be assigned to the vehicle design departments located in Italy, Germany, Croatia and India.

"The goal for 2011 and for the next few years will see us busy maintaining a streamline and innovative enterprise, which is managed carefully and efficiently and is therefore able to compete and develop internationally. To do this the company will need to improve turnover in those new markets which were heavily invested in and in other markets where to this date our presence has been lacking," the company stated in its latest annual report.

Last Updated ( Friday, 19 August 2011 )
 
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