Industry Odisha Bureau, Aug 31: Tractors and Farm Equipment Ltd will invest up to ₹1,250 crore in a fifth manufacturing plant. The facility, planned for north India, will add roughly 60,000 tractors of annual capacity. It marks TAFE’s first greenfield plant in twenty-nine years. The move follows a breakout year of growth for India’s second-largest tractor maker.
Revenue climbed 25% to nearly ₹16,000 crore across TAFE’s group entities last year. Domestic sales grew 24.8%, with the company selling about 214,000 tractors. Chairperson Mallika Srinivasan credited a good monsoon, a GST cut, and farmer-friendly state policies. Together, these factors drew many first-time buyers toward premium tractor models.
The new facility adds to TAFE’s existing 260,000-tractor capacity across four plants. Those sites span Chennai, Doddaballapur, Kalladipatti, and Bhopal, built between 1961 and 2005. Management expects the new plant within eighteen months, pending a final location decision. Srinivasan said rising export confidence, alongside domestic demand, is driving the expansion.
TAFE held about 18% market share in FY26’s first nine months. Mahindra & Mahindra led with 44% share and 534,507 tractors sold. TAFE has still made notable gains in the popular 41–50 HP segment. Its share there rose from under 50% in FY20 to 63% by FY25.
Crisil projects industry-wide tractor sales growth slowing to just 0–2% this year. Analysts cite a high base and lingering concerns around El Niño weather. Still, Srinivasan expects TAFE’s own revenue to grow roughly 10% in FY27. Vice chair Lakshmi Venu has taken an active customer-facing role recently, championing broader farmer engagement, including women in agriculture.
Beyond manufacturing, TAFE completed a major ownership restructuring involving AGCO Corporation this year. TAFE bought AGCO’s 20% stake for about $260 million. That deal made TAFE a wholly owned subsidiary of the Amalgamations Group. Srinivasan noted TAFE remains AGCO’s largest single shareholder, holding a 16.3% stake worth roughly $1.3 billion.
TAFE remains debt-free and has no current plans for an initial public offering. The company’s fifth-plant investment reflects confidence built on strong recent momentum. Yet industry-wide demand normalisation could test capacity discipline across the broader tractor sector.
