India arrives in Aguascalientes with an investment of one million dollars
Brief: Company seeks to detonate Mexico, Central America and the Caribbean
Grupo Mahindra innovates with the introduction of vehicles for the agricultural industry and bets on Mexico with the arrival to the State of Aguascalientes of its assembly and distribution center of tractors and commercial vehicles for the country, Central America and the Caribbean.
Mahindra is the first manufacturer of tractors of Indian origin that comes to Mexico, and has the only tractor manufactured that has received the two most important quality awards: the Deming Application Prize Award and the Japanese Quality Medal. It also has a presence in more than 100 countries, generating around 200,000 jobs worldwide.
Steven Smith, Director General for Mexico, Central America and the Caribbean; Mentioned that when the marketing evaluation was carried out to bring Mahindra to Mexico they realized that the two nations share similarities in their agricultural markets; such as sowing time (1,000 hours per year), the same type of instruments used in this activity and the products grown: wheat, cotton and sugar cane.
As for the entity, emphasized its strategic location that will allow an easy import of kits of assembly and distribution of vehicles. On the other hand, Smith stated that Mahindra will seek to support, with adapted financing systems, producers and distributors wishing to purchase utility vehicles in a social responsibility effort.
In the first stage, it will have a production capacity of 300 to 500 tractors annually and will generate 50 direct jobs. The company aims to reach a production of 2,000 tractors in 5 years, as well as the creation of a staff of 500 employees, investing one million dollars with its commercial partners during this period.
In terms of supply, which is large from India, other parts of the tractors are imported from Japan and the United States, 30% of the vehicle is from Mexican suppliers and is intended to increase the percentage to 40%, and thus gradually, by What Mahindra Mexico intends to obtain the largest number of local suppliers in order to increase domestic content, or to reach new markets in Mexico.
The Sinaloa business group Quimia Maquinaria y Equipos will have the first distribution of these agricultural implements, focused on the pacific zone, and in this respect, Antonio Anibal Miranda Lopez, partner of the same, assured that to adhere to its market products of a company of international magnitude Is very positive, as it provides alternative solutions to producers of the field with the innovation of new tractors that improve the primary activity of the sector.
He also emphasized that one of the important points is to have spare parts and service support, since it is no use, he said, bringingequipment from the farm to the market and not backed them up with after-sales service, which is what provides a guarantee. He also reiterated that this type of tractors provide economy in fuel consumption and a guarantee that is difficult to find in the field.
“We are going to be the ones who assemble tractors for all distributors in Mexico, Grupo Quimia is will be one of the distributors in the Pacific area, and depending on the market it is estimated that each region will have its own distributor. Mahindra will produce in Aguascalientes and will ship to each of those locations,” said Enrique Randolph Guerra, director of Mahindra's tractor assembling company.
The equipment to be assembled in the entity are models with engines ranging from 26 to 95 horsepower, and utility units are designed under study to meet and reach the specific needs of farmers in Mexico in their handling characteristics and power.
For his part, ManiIyer, president and chief operating officer of Mahindra Americas, insisted that the partnership with Mexico aims to achieve positive changes and have a positive impact on the communities where people live and work.
“We are excited about the launching of Mahindra Americas operations and the opening of this first assembler and distribution center in Aguascalientes. This sets the beginning of a long-term relationship for the benefit of the Mexican countryside, its prosperity and mechanization with the agricultural industry in Mexico,” he concluded.
Mahindra consolidates itself as the signature that more tractors sells in the world. Additionally, it excels in more than 40 countries with a network of dealerships above the thousand. To date, Mahindra has marketed more than 2.25 million tractors worldwide.
Mexico and India, with more similarity than competition
The India-Mexico relationship has always been kind, warm and cordial since 1950, and is characterized by growing bilateral trade and comprehensive cooperation.
“Bilateral trade has steadily increased in the last five years. In 2015, trade figures reached 5.9 billion dollars, which means a growth of 42% in 2011. Mexico imports cars, engineering products, chemicals, pharmaceuticals and garments mainly from India. India imports from Mexico oil, fertilizers and iron, among other goods,” said Rodrigo Blanco Zamora, counselor of ProMexico in India, at the opening of the company Mahindra.
He added that the sectors in which it is invested coincide, for the most part, with those of Indian companies that are internationally competitive. However, those with a greater presence in Mexico are related to information technology, medicines, engineering goods and auto parts.
“Today, with a global investment of 3 billion dollars, there are 60 Indian companies that have chosen Mexico, particularly in the states of Aguascalientes, Baja California, Jalisco, Guanajuato, Puebla, Nuevo Leon, Coahuila, Guadalajara, Monterrey and Mexico City, where they are located from heavy industries to the manufacture of inputs,” said Blanco Zamora.
It should be noted that the Information Technology (IT) industry generated 10 thousand jobs in Guadalajara, Monterrey and Mexico City. It is also important to mention that 10 Mexican companies are established in India.
In addition, it is worth noting that in 2017, India plans to continue investing in Mexico with 6 companies, 3 confirmed companies and 3 backline companies seeking to locate in the states of Nuevo Leon, Queretaro, Guanajuato and San Luis Potosi. From the 3 companies that are already confirmed, the first is in the State of Guanajuato and is called Bill Forge Global Mahindra group; the second is located in Nuevo Leon, and is CardioTrack that manufactures medical devices; and the third is Mahindra, in the city of Aguascalientes.
Cesar Fragoso Lopez, head of the ProMexico Sector Development Unit, described the installation of Mahindra Tractors in Aguascalientes as a successful example of the diversification of the origin of investment for Mexico, thanks to the fundamental fact of discovering markets with a significant future, such as Case of India.
He concluded that Aguascalientes took “the cherry pie” because of all the companies that have arrived in Mexico, the largest group in the automotive sector is this, which offers great potential to the State to attract more companies even from other sectors.
“If you want to go fast, go alone. If you want to go far, go together”