A leading global agricultural equipment manufacturer needed to expand. A key part of their expansion plan was to move production to India. Enter: Greenfield Setup by Business Access Partners.
A US based agricultural equipment manufacturing major, with tractor manufacturing plants across Asia, wanted to de-risk its supply chain and shift production to India. The company had an existing manufacturing plant in Pune, a city in the industrial state of Maharashtra, which catered to its high-end variant of tractors.
The new plant, with a planned capacity of 50000 tractors per year would cater to a budget variant.
Solution
As a global leader in this high stake market, the project called for the following structured solution
Location Planning
- Easily accessible location to keep the logistics costs low
- Close proximity to the agrarian markets
- Talent pool of semi-skilled and skilled labour for production and plant administration
- State level incentives like transparent tax breaks and subsidies
- Proximity to the existing plant in Pune to realize economies of scale
In line with the above requirement, Dewas in the state of Madhya Pradesh was selected for the client location.
Land Acquisition
- Given the above requirements and non-availability of desired government land, we proposed a greenfield land acquisition strategy
- Business Access Partners with its team of legal experts owned the land acquisition exercise, including
- rigorous land due diligence
- price negotiations
- procuring government permissions to purchase the land from a total of 37 different farmers!
Approvals & Implementation: Government Subsidies Consultation and Liaising
- We were instrumental in getting this project declared a Mega Project under the Madhya Pradesh Industrial Promotion Policy.
Impact
Optimum location selected – Dewas, a power surplus city in Madhya Pradesh, a centrally located state
Peace of mind for client with Business Access Partners owning probably the toughest part of Greenfield Setup in India – land acquisition
Availed attractive benefits and subsidies from the government of Madhya Pradesh
The state of Madhya Pradesh could promote itself as an agrarian state and host to one of the world’s largest agricultural equipment manufacturers