According to top officials at Case New Holland Industrial, the world's fourth-biggest tractor manufacturer, the company plans to triple its sourcing of parts and components from India to over $300 million in the next three years.
According to officials at CNH Industrial (India), the Italian-American firm has a clear vision of at least increasing its sourcing from India to over $300 million by 2024 as part of its 'China plus' strategy, adding that it might be expanded to half a billion dollars in three to five years.
Raunak Varma, MD of CNH Industrial (India) said, India has proven to be a reliable source over the last two years by delivering over 100 percent efficiency despite Covid-19 disruptions, prompting the headquarters to turn to it for sourcing a variety of products, including engines and engine parts, forgings, and other critical components.
He said the company is looking at ways to source more from India as a buffer against significant sourcing from China.
CNH Industrial, one of the world's top tractor manufacturers, are trying to spread its strength through new product additions, production expansion, and prospective local partnerships in India's $8 billion tractor and farm equipment sector.
The recent deal between the Nanda family-led Escorts and Japan's Kubota set the tone for what the market regards as an aggressive battle for market domination by players. The Indo-Japanese company stated that it aspires to be India's largest tractor manufacturer, surpassing current heavyweight Mahindra & Mahindra (M&M).
When asked if it would like to develop in India through acquisition, CNH indicated it is "open" to partnerships.
CNH intends to supply components manufactured in India to its worldwide sister companies, resulting in greater parts purchases. "Given the supply chain issues we've witnessed, India provides a hedge for the business against China." We're now looking as a group at how we can better exploit India as a 'low-cost nation,' with the initial goal being to buy half a billion more from here. "As of 2021, purchasing would be $600 million, and we want to double that," Varma continued.
