Mahindra & Mahindra eyes gross value of $200 million for agricultural services

To capture a share of the $600 billion agricultural market beyond tractors, Mahindra & Mahindra is targeting $200 million in gross merchandise value through its Agriculture as a Krish-e vertical service by 2025.

Through Krish-e, Mahindra aims to bring affordable and accessible agricultural technologies and services to over 2 million farmers, enabling the company to engage with them across the agriculture value chain. agriculture – right from offering advisory services, selling inputs like seeds and pesticides, and offering mechanized equipment and tractors for hire through a subscription or pay-as-you-go model.

Launched just at the time of the covid pandemic, Mahindra expects Krish-e to grow its GMV four to five times from its current base of $40 million.

With an omnichannel approach, Krish-e services can be available through the Krish-e digital application suite, the Krish-e call center and through over 100 Krish-e resellers. The company wants to eventually expand Krish-e to all 2000 Mahindra & Swaraj dealerships.

Ramesh Ramachandran, SVP- Farming as a Service Head (FAAS) of Farm Sector Strategy at Mahindra & Mahindra, said the tractor market is becoming increasingly competitive and the idea was how Krish-E can help Mahindra to approach the customer in a differentiated way and affect life positively at every stage of farming. “FAAS exists to improve income per acre for the farmer and others in the agricultural ecosystem, so it is very focused on improving income in a sustainable way, primarily for the farmer, but also for service providers. services to inform others in the agricultural ecosystem, where Mahindra plays a catalytic role,” said Ramachandran.

India has about 2 million tractor rental entrepreneurs. It is a large unorganized market with around Rs 30,000 crore in business done every year. Ramachandran believes rental farming solutions will open up the market for advanced agricultural machinery as well as the precision farming market, which is still largely undefined.

Krish-E was formed by bringing together different parts of the Mahindra Group or agricultural and integrated equipment business to deliver a cohesive value proposition to farmers. Samriddhi, Mahindra Agri Solution Advisory Service, My AgriGuru App, Trringo Tractor Rental Branch and Precision Farming Decision, all came together under Krish-E to offer a complete one-stop solution ago three years.

Ramachandran says that with agriculture becoming increasingly technology-intensive, over the past few years, Mahindra has worked with several start-ups across the agricultural value chain.

Mahindra spends a lot to pilot joint projects and comprehensive incubation programs with start-ups and invests in some of them.

“Our latest acquisition of Gamaya will allow us to develop and deploy next-generation agricultural capabilities, such as precision agriculture and digital agricultural technologies, giving us access to hyperspectral imagery analysis, artificial intelligence and machine learning, which captures and interprets useful state information. harvests for farmers,” added Ramachandran.

Mahindra took a stake in MITRA Agro Equipment in January 2018 – for crop spraying technology. It invested in Carnot Technologies in February 2018 which offers an IoT platform for tractors, harvesters and sprayers.

Its investment in Resson Aerospace in May 2018 helped Mahindra offer imaging analysis to monitor crop health, while the partnership with Gamaya SA in June 2019 helped develop and deploy next-generation agricultural capabilities such as precision agriculture and digital agricultural technologies.

To execute many of these benefits from zero, Mahindra & Mahindra has so far worked on 13,500 acre plots – which are called Takneek plots, where Krish-E experts work with farmers in implementing modern agricultural techniques and practices.

They help impart scientific knowledge to farmers throughout the life cycle of crops – crop planning, seed treatment and optimum application of fertilizers which ultimately help the farmer improve yield and earn around Rs 5000 to Rs 15000 per acre.