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Institutional Sales

Farm Equipment Sector

Rahul Nandkeolyar

Mumbai Tuesday

, February 20, 2007

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Institutional Sales

The traditional approach hasbeen to focus on retail sale to a

single segment -- The Farmers,thro the Dealer Network, with

marginal emphasis on directsale to other possible segments.

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Agricultural

Applications.

Orchards &Tea Gardens.

Construction& Infrastructure

Industry

Mining Industry

Defence Units &Servicemen(J J S J K)

GovernmentDepartments

Contractors

Govt. & Private

Agros & Apex Bodies

Institutional Sales

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Institutional Sales

To facilitate this transformationuniformly throughout the

Organization, a centralizeddepartment, which has its owninherent benefits, has been created at

Marketing H. O.

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Institutional Market Segments

Public Sector Undertakings

Railways & Port trustsCoal Fields & Mines

Thermal Plants

State Agro's

State Farms & Co-operatives

State Development Boards.

Gram PanchayatsMunicipal Boards

Central Development Boards

Government BodiesPublic Sector Undertaking

Government Undertaking

Para military forces

CRPF/BSFITBP /Assam Rifles

Air force Squadrons/ Naval Commands

Army Regimental Centres

Military Farms

Ordinance Factories

JJSJKCSD

Defence Institutions

Defence Services

Heavy Engineering Companies

Courier CompaniesC&F & Stevedoring Agencies

Tender Business

Tea Gardens

Sugar Plantations

Corporate &

Large Firms

AirlinesConstruction Industries

Road & Infrastructure DevelopmentCompanies

Private Sector OrganizationsAgricultural Colleges

N G O 'sCorporate Bodies

Institutional Sales Customers

All customers other than the Agri Sector serviced through our dealer network

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Institutional Sales.

Untapped Market Potential

Delta sales leading to growth in volumes

and market share

Volume and market share targetachievement for Dealers & Area Office.

Reduction in working capital cycle /Additional revenue generation

Benefits

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Institutional Sales.

Benefits

Structured pricing

Sales tax benefits to customer Modvat benefits to customer.

Standard pricing policy for tender business

Standard pricing policy for various Private Sector

organizations Standard pricing policy for Government business

Low cost of capital & customer acquisition. Benefitspassed on to the customer

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Institutional Sales

Reduction in working capital cycle.Additional Revenue Generation

Payment in advance for mostGovernment & Private Sector Business

Quicker realization

Control on outstanding

Structured approach to untappedmarkets

Benefits

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Institutional Sales

Current Status Zone I

Actual Sale F 07 -- 282 Tractors

Potential Sale F 08 -- 1225 Tractors??

How do we fill the gap?

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Institutional Sales

Priority focuson :

1. Gujarat.2. Chhatisgarh.

3. Madhya Pradesh.

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Institutional Sales

* Data Sourcewww.projectstoday.com. All figures in Rs. Crores.

Project Type Chhatisgarh Gujarat Madhya Pradesh

Airport & Port 18,576

Chem & Fert 73,252

Gas Oil & Power 48,635 49,975 31,897

Infrastructure 28,675 43,629 8,254

Irrigation 202 21,453 11,684

Other Misc Proj 1859 13,097 9,146

Railway 685 5,972 1,913

Road 3666 8,343 5,768

Total 83,722 234,298 68,661

http://www.projectstoday.com/http://www.projectstoday.com/

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Institutional Sales

ApproachIdentify the project to focus on1. Identify other potential segments

Tractors with Post Hole Diggers for rural

electrification projects. Tractors with boring Jigs for tube well drilling.

Front end loaders for hot mix plants for roads etc.,

2. Freeze on potential Sale in the Focus States3. Appoint a point leader in each state

4. Institutional Manager -- Zonal Resource ?

Responsibility HO & AM.

Deadline March 10, 07

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Institutional Sales

PROPOSEDACTIVITY1. Liaison with Customers / Contractors

HO with Main Customers / Contractors AO/Dealers with local Customers / Contractors

2. Product Strategy Availability of the right product. E.G. 4 WD Tractors - HO/PMMS/PDRDS Existing Tractor Application equipment vis--vis other out sourced

equipment HO Identify any other segment specific equipment HO / PMMS / PDRDS

3. Pricing Strategy Pricing on a case to case basis -- HO/AO Budget for Dealer incentive & Sales Promotion Activity.

4. Financing Options Role of MMFSL vis--vis Banks -- HO

5. Dealers Responsibilities Standard Operating Procedures to be finalized --HO/AO Appointment of Institutional Dealer ?

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Institutional Sales

PLAN F 08

Agros Army Sales Direct Sales Totals

Chhatisgarh 100 - 300 400

Madhya Pradesh 125 - 150 275

Gujarat 100 - 450 550

Total 325 900 1225