VST Tillers & Tractors, a leading manufacturer of farm equipment and tractors, is set to enhance its R&D (research and development) capabilities by establishing a global tech centre in Hosur, Tamil Nadu.
This new tech centre is designed to fast-track EV innovation, develop proprietary technologies, boost testing capabilities and foster international collaborations. It will serve as the company’s primary R&D hub, focusing on electric powertrains, battery technologies and advanced driver assistance systems, enabling the development, testing and validation of cutting-edge, reliable and safe electric vehicles.
The company is planning a substantial investment of ₹100 crore to establish the global R&D centre in a phased manner. Over the past three-four years, VST has already invested ₹100 crore, Arun V Surendra, Chairman of VST Tillers & Tractors, which is part of the VST Group of Companies, said in the company’s latest annual report. These ongoing R&D investments will propel the company forward, allowing the introduction of advanced solutions tailored to the evolving needs of farmers, he said.
The Bengaluru-headquartered company is working on at least 10 new products including EV (electric vehicle) models.
Focus on the US
The Chairman also highlighted the company’s focus on expanding its footprint in emerging markets. In April, VST incorporated a wholly-owned subsidiary, VST Americas Inc., in the US, to address the needs of that market in the tractor and farm machinery segment, opening up new growth opportunities. The company is expected to launch its products in the US market by FY26.
During a recent earnings call, VT Ravindra, Managing Director of VST, indicated that the company had begun developing specific products for the US market, which has different requirements compared to Europe, where VST entered in 2016 with its ‘VST Fieldtrac’ range of compact products that meet EU regulations.
To further solidify its presence in North America, VST has also established a step-down subsidiary, VST Fieldtrac LLC, in the US.
VST has a presence in over 40 countries, including Europe, Asia and Africa. The share of international business in VST’s revenue has grown from approximately 4 per cent in FY20 to 8 per cent in FY23, and further to 13.5 per cent in FY24. It posted an operating revenue of ₹968 crore in FY24, down from ₹1,006 crore in FY23, while profit after tax rose to ₹122 crore in FY24 (₹92 crore).