Interview:
Pramod Rajan, Head, Research & Development, International Tractors Limited
Q. What role is the R&D playing in the company’s growth? A.
We have a team of 200 engineers and 100 technicians. Of these, there are 120 design engineers. Supporting them are 50 engineers that carry out testing. Playing an important role, the R&D carries out numerous tasks including design, development, and testing. For example, work is being carried out on a 120 hp engine that will go into production later this year. In India, BS IIIA emission norms apply to agricultural products. So, we are working on the engine for it to meet these norms, and offer superior efficiency. The R&D plays an important role in the design and development of aggregates. With aggregate manufacture and assembly carried out in one plant, we also play a role in developing skin panels. Final processing of 50 per cent parts is done in-house. It is the child parts that are procured from outside.
Q. What new projects are you working on? A.
We are currently focusing on two things – fuel efficiency and performance. We want to improve the fuel efficiency of our product portfolio. Diesel prices have started moving north. Indian customers are very price sensitive, and it is therefore essential that we offer fuel efficient products. Our products are known to be robust, stylish and comfortable. We want to ensure that our products exceed their requirements. With rural markets warming up to new things, expectations are rising. This is making it necessary that we look at styling and comfort in the case of tractors. We will soon launch a completely new series of tractors for the domestic market. These will highlight comfort and styling. We feel that the tractor should be a status symbol.
Q. What role is the R&D playing in exports? A.
We export tractors to Europe and US. For these markets we developed StageIV compliant engines that will go into production in the last quarter of this fiscal. In India, we believe that BSIV emission norms for tractors will come only in 2020. The cost of technology at this point will be very high. We expect an emission norms shift in the category above 50 hp.
Q. How soon could telematics become a standard fitment on tractors? A.
We have already put telematics systems on our test tractors. We have the system ready for customers, and offer to those who demand it. We have not marketed it because cost of having a telematics system is high. The perceived value for customer is not high. It may be not be a standard fitment solution for now therefore, and will be offered only on demand. It is true that the competition is already offering telematics systems on their machines. The cost of telematics, in India, is still on the higher side. Telematics is used by fleet operators. For an individual owner to use a mobile phone makes more sense since it is cheaper. Owning a phone costs no more than Rs.200. Servicing a telematics system every month will cost more that Rs.500 per month. Customer therefore is still reluctant to pay.
Q. What new could ITL offer next year? A.
One of the plan is to shift tractors in the 60 to 120 hp range to commonrail technology. The 120 hp tractor is equipped with a six-cylinder engine. It is aimed at the African market where the land size is huge. This engine can be elevated to produce 200 hp. As per the demand, we will slowly move forward. In India, where the land mass is not as big. We will go up to 75 and 90 hp tractors at the most. For special applications, some government tenders are calling for 100 and 110 hp machines. These would be used for clearing snow, and will account for a very small volume. We do not produce hydrostatic transmissions for India. For Europe and US, we are looking at hydrostatic transmission for less than 30 hp. This transmission could be aimed at the hobby farming segment.
Q. Which do you think are the fast emerging segments in India? A.
In the last five years, the maximum tractors that are being sold are in the range of 40 to 50 hp. In 2011, there was an emission norms change for tractors above 50hp. As far as the tractor industry is concerned, a shift is likely to take place from 40 to 50 hp, and to 50-60 hp. A shift beyond that looks difficult. Tractors in the 40-50 hp range account for 30 per cent of the market. We are currently selling eight forward and two reverse speed transmissions. We are working on 12 forward and 12 reverse gears transmission. This will be offered on 60 hp machines, and later on in the 40-50 hp segment tractors.
Q. Does the rising use of plastics in tractors hint at the need to light weight? A.
There is a requirement for light weighting of tractors. Especially in the rice producing belts in South India. We will introduce products in that segment with our partner Yanmar in the 40-50 hp segment.