The Pune-based maker of agricultural machinery entered India last year and is already set to pump in another Rs 300 crore to strengthen its presence

By Huned Contractor

The first time that India got to know of the Italian company Maschio Gaspardo was in September 2012 when it inaugurated its production plant at Ranjangaon near Pune. The group specialises in the production of agricultural machinery and had decided to foray into the Indian market with an initial investment of Rs 200 crore. With Union Minister of Agriculture Sharad Pawar doing the honours in the presence of Egidio Maschio, President, Maschio Gaspardo Group and Alessio Riulini, Managing Director, Maschio Gaspardo India, the strategy outlaid then was to help the company achieve its aim for 2012 of exceeding USD 280 million turnover and make India an important production base.

Cut to October 2013 and the story is that Machio Gaspardo India Private Limited (MGIPL) has been right on track for the last 12 months and indeed accomplished what it had set out to do. And so it did not come as a major surprise when the company's officials recently announced that there is now underway a plan to invest a further Rs 300 crore in their Ranjangaon plant. The capital outlay is designed for expansion of production capabilities for rotary tillers, power harrows, precision planters, cereal seed drills, combination cultivator-drills, mulchers, sprayers and minimum tillage equipment in India.

"I am very keen to see the growth and progress of one of the top Italian companies in India - especially to see it partner Indian farmers and the agri-communities in their path of progress. The success of MGIPL will improve business and trading relations between India and Italy as the MG Group has set an example for other Italian companies to emulate," says Andrea Maschio, vice president of the MG Group.

According to Riulini, the MG Group has acquired two new companies and strengthened the company's portfolio in agriculture implements. "We have acquired the sprayer brand, Unigreen, which specializes in the development of medium-sized sprayers for weed control and crop protection. With this transaction, our group completes its range of crop management machinery and is now able to offer a wide range of high quality and technologically advanced products, covering the entire production cycle of the land: soil tillage, seeding, crop care, post-harvesting, and residue management. And despite the economic crisis, we continue to recognise market opportunities and to invest for growth," he adds.

Another recent development has been MG Group's new partnership with MORO located in Concordia Sagittaria, in the province of Venice. Since MORO was first established in 1958 the company has been specialising in the production of ploughs. During this time period, with more than 50 years of experience, it has revolutionised the process of soil working thanks to the introduction of the rotary ditcher, the on-land plough for rubber-tyred tractors and the on-land reversible plough. All the plough models will continue to be made Concordia Sagittaria plant but will be supplied by Maschio Gaspardo's retail network all over the world.

Through its Indian operations, MGIPL is looking forward to work very closely with the farmers by developing a dealer's network across India very soon. "We have studied all the regions, agronomy, farming practices of India at micro level and are ready to launch suitable crop-wise products for the India market for soil preparation, seeding, crop care, residue management and post-harvesting. MGIPL really aims to increase the per capita income of farmers and hence the growth and development of Indian agriculture," Riulini states.

MGIPL has already produced 10,000 machines within the first year and now intends to produce 30,000 machines in 2014 for the domestic market. The company also plans to serve the needs of the MG Group's other global customers by providing local supply to their Asia Pacific facilities; the latest technology in the Indian agricultural market; and double the headcount in India.

The growing importance of the Indian agricultural market, especially in the wake of a normal monsoon this year, gives this country a central position in Maschio Gaspardo Group's global strategy. "Pune is an ideal location for our new plant because the city provides a strong infrastructure and a rich talent pool of skilled workforce in the manufacturing sector. Our one-year-old plant represents a key milestone in the company's long-term vision of investing in fast growing markets and aligning our manufacturing footprint with the needs of our global customer base," Riulini comments.

It was in 1964 that the Maschio brothers manufactured the first Maschio rotary tiller in their small workshop, appropriately nicknamed 'The home of small tillers.' What was a small workshop has today turned into a major industrial group, still managed by the two founders, Egidio and Giorgio, along with their sons Andrew and Mirco and daughters Martina and Monica. MGP now has 11 large production plants, seven in Italy and another four overseas in Romania, India, Russia and China.

In addition, Maschio Gaspardo has 10 sales branches located in Germany, France, Spain, Ukraine, Poland, Turkey, North America, South Korea, Iran and Georgia. The Group has 500+ models and sells about 60,000 machines each year. It currently employs approximately 1,400 people.