Who is TAFE?: AGCO’s historical partner in India

News of the divorce between AGCO and TAV shocked the global market Tractors.

Strictly speaking, it is a separation on a commercial level only, as the two companies continue to share common stakes in the composition of their shares.

Now, who is TAFE?

With an annual production of 150,000 units, TAFE (Tractors and Agricultural Equipment) is the second largest tractor manufacturer in India.

It was established in 1960 and is headquartered in Chennai.

Date and scope

TAFE has been a pillar of the tractor industry and specializes in producing the brand Massey Ferguson to Agco.

Moreover, as a shareholder of AgcoHe was a strategic partner of the multinational company and participated in important decisions within the group.

It has a network of more than 1000 distributors In various international markets, where products are sold under brands such as tiff, Massey Ferguson, IMT And Escher.

Its offer includes tractors, harvesters, engines, generator sets, tools and attachments.

relationship

Far from dissolving the business relationship, the two companies remain linked at a corporate level.

AGCO currently owns Twenty one% of TAFE shares, while the Indian company and its subsidiaries own approximately 16% of AGCO shares.

Until separation, joint operations involved significant exchanges of agricultural equipment and parts.

For example, over the past year, AGCO has purchased tractors and components from them 171.6 million US dollarsWhile TAFE demanded a cut for 3.6 million US dollars To multinational companies.

As follows?

The story of TAFE and AGCO is testament to how strategic alliances can foster growth and innovation in the agricultural sector.

However, it also shows that changes in management and strategic differences can lead to abrupt endings to long-standing partnerships.

The future of TAFE, independent of AGCO, will be an interesting chapter to follow in the history of global agricultural machinery.