New Delhi: Tractor manufacturer Escorts Ltd has said that it would hike the prices of its products within this month, even as it looks for a 10-12% growth for the fiscal 2007-08 ending in September.
“The steel prices have been growing up and since late December we have already seen three price hikes and another fourth one is round the corner,” Escorts Ltd Executive Director and Chief Executive Officer Rohtash Mal told reporters .
He, however, declined to comment on the quantum of the price hike.
“We use about 1,800 kg of steel in a tractor. Whenever, steel prices grow up we do not have much option but passing it (burden) partially to the customers,” he said.
“Escorts, which sold about 50,000 tractors last year, is targeting a growth of about 10-12% this year,” he added.
The company is also working on new product line, including a bio diesel tractor to increase its market share in the domestic market.
“The bio diesel tractor would be launch within this year and we are also looking at higher horse power tractors. The company currently sells tractors in the horse power range of 30-70. Definitely, we are looking beyond the 70 hp range,” he noted.