Betting big on the farm sector, homegrown conglomerate Mahindra group is gearing up for a big play in agriculture, leveraging on the brand equity of its tractors, to make it a significant revenue and profit generator in the next five years.
The group, which forayed into agri-segment in 2010-end, is keeping options open for acquisitions in the range of Rs 100-150 crore in seeds, dairy, irrigation and crop care verticals as it looks to scale up.
Already it is working on various initiatives, including selling of grapes, apples, banana, seed potato, pulses, oilseeds, dairy and micro irrigation.
"Since we are the largest brand in tractors we have fairly high brand equity in Indian agricultural space. Therefore, what we are doing is we are taking our tractor knowledge and expanding it to complete the agri value chain," Mahindra & Mahindra Executive Director Pawan Goenka said.
Bullish on the sector, he said: "The way I look into it, five years from now the agri business will become significant revenue and profit generator for Mahindra & Mahindra."
He said the potential in agri sector is so huge that "30-40 percent growth is possible if we continue to grow each new vertical and enter new segments".