Tractors and Farm Equipment Ltd (TAFE), India's second-largest tractor maker, is investing ₹1,250 crore to establish its fifth manufacturing plant in a northern Indian state. This marks the company's first greenfield plant in 29 years, announced on August 31, 2026, as TAFE aims to expand capacity amid a 25% revenue increase to ₹16,000 crore last fiscal year, according to livemint.com.
The decision to build the new plant follows TAFE's strong performance driven by rising exports and domestic demand. Chairperson and Managing Director Mallika Srinivasan, along with Vice Chair Lakshmi Venu, are leading the expansion strategy. The plant will enhance production capabilities, supporting TAFE's growth trajectory after nearly three decades without a greenfield facility, livemint.com reported.
This investment underscores TAFE's commitment to scaling operations in the competitive tractor market, where it ranks second nationally. The move aligns with broader trends of increased mechanization in Indian agriculture and rising export opportunities. The ₹1,250 crore capital expenditure also reflects confidence in sustained demand, positioning TAFE alongside other major players investing in capacity expansion to capture market share, per livemint.com.
The new facility is expected to significantly boost TAFE's production output and export volumes. The company has not disclosed the plant's exact location or timeline for completion but confirmed the ₹1,250 crore investment as part of its long-term growth plan, according to livemint.com.