V.S.T Tillers Tractors · tone and specificity signals across the available quarters.
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80% of Indian farmers are looking for small and affordable solutions and this is the bottom of pyramid potential that is available to us. The power weeder segment will continue to grow even faster than power tillers going forward because the price points are much lower.
We won't be able to achieve parity with Chinese costs. That is very clear. What we can definitely do is create more value for the buyer — provide warranty, service, and spare parts when he needs it. That is what the customer values.
In the next 4-5 years we can definitely claim 2 to 3% market share in the 40-50 HP tractor segment. 1% market share in this industry is about ₹500 crores. That is definitely possible and that is why we are confident that is a good runway for growth for VST in the tractor sector.
It is kind of a volatile situation now to say conclusively what will happen in the next 3 months or so. However, our strategy has been to structurally shift how we operate in the small and marginal farmer space.
We want to grow it to 20% retail finance this financial year. With this the dependency on subsidy is coming down year by year.
If we are able to do around 23 to 26% continuously on a compounded basis till FY30 we will get to our goal of 3,000 crores.