Tractors and Farm Equipment Limited (TAFE), is an Indian tractor major incorporated in 1960 at Chennai, with an annual turnover of INR 93 billion. The third-largest tractor manufacturer in the world and the second largest in India by volumes, TAFE wields about 25% market share of the Indian tractor industry with a sale of over 150,000 tractors (domestic and international) annually and presence in over 100 countries.
The Amalgamations Group entered the tractor business in 1960. Simpson & Company was already making Perkins Diesel Engines and the founder chairman of the group, Mr. Anantharamakrishnan's own great interest in agriculture and the Green Revolution in making, made the group grab the opportunity to make tractors when it presented itself.
Standard Motor Products of India Limited had been assembling Massey Ferguson tractors in India for Massey Ferguson India, which was a Bangalore based company handling the entire MF business in India. Massey Ferguson was looking for a company that would, in a phased manner, manufacture its tractors in India and successful negotiations with The Amalgamations Group lead to the group taking over the Bangalore operations and moving it to Chennai, then Madras. The new company was called Tractors and Farm Equipment Limited.
On December 15, 1960, Mr. S. Anantharamakrishnan announced at a press conference at Chennai, his plans to manufacture tractors and implements at Simpson's Industrial Estate in collaboration with Massey Ferguson of Toronto. At that time, the estimated demand for tractors in India was 12,000 tractors per year and TAFE was allocated a capacity of 7,000 tractors a year. Initially 50% of the tractor was built with indigenous content but within two years this rose to 85%. From these early beginnings, we are proud to have risen to a turnover of INR 93 billion and a sale of over 150,000 tractors (domestic and international) in the year 2014-2015, apart from the distinction of being powering forms in over 100 countries.
TAFE's financial track record is one of consistent profit making, prudent fund management and sound corporate governance. TAFE sets industry standards for various performance parameters like inventory turns and Returns on Capital Employed (ROCE). Among the least leveraged companies in this industry, most of TAFE's expansion plans are financed through internal accruals leading to exceptional ratings by acclaimed credit rating agencies.
The Amalgamations group is one of India's largest light engineering groups with interests in businesses that are predominantly in automobile components but also extend to diverse areas such as plantations, batteries, printing, book selling, pesticides and plantation products, engineering tools and paints. With a heritage of over 150 years of serving customers from farmers to tycoons the group comprises of 41 companies with manufacturing units spread across India and a workforce of over 15,000 employees. Originally comprising of a few European owned and managed companies, the group is now wholly owned and managed by Indian promoters. The group is well known for its strict adherence to quality in products and services and the highest standards of corporate governance and business ethics. Financial prudence is a hall mark of the group, leading to it being one of the least leveraged of groups with expansions being mostly funded from internal accruals.