Enters into farm equipment rental services, using new age technology and digitization
• The tractor and equipment rental market is currently valued at about Rs 15,000 crores annually
• TRRINGO will be India’s foremost organized rental business model for farm equipment
• To make tractor and implement rentals more accessible to farmers through a branded service
• Franchisee based model to ensure consistent quality of service and timely delivery
• TRRINGO will use digital platform as an enabler to process orders and pass them to the nearest franchisee through location based mapping
• To begin operations in June 2016 and scale up to five states by August 2016
• Global operations could commence in the future
Mumbai, March 14, 2016: Mahindra's Farm Equipment Sector (FES), a part of the $16.9 billion Mahindra Group, today announced its foray into agricultural equipment rental services with the launch of TRRINGO, India's foremost organized rental service. A service dedicated to the farmers of the nation, TRRINGO will operate as a franchisee based model and will effectively bring in new age digital technology to the tractor rental business. This is expected to significantly increase the reach of farm mechanization and enable digital empowerment of the farmers of India. This venture would be set up as a new age startup company.
Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd, said, "In our country where farm mechanization penetration is low, Mahindra would like to play a significant role in enabling our farmers to improve their productivity and Rise by providing accessible technology. The TRRINGO farm equipment rental business model will enable farmers to deploy mechanization technology on a pay per use basis without investing in the asset. This will increase their output and prosperity and lead to the inclusive growth of the nation".
Mr. Rajesh Jejurikar, President & Chief Executive Farm Equipment & Two Wheelers, Mahindra & Mahindra Ltd said, "TRRINGO will be an e-commerce startup which will provide the brand promise of equipment availability, commitment and performance, to transform lives of farmers, enabling them to Rise. We hope to ramp up this offering to five states this year".
TRRINGO is a first of its kind technology driven model in the tractor rental business for those farmers who may not be able to afford their own tractor and farm equipment. The TRRINGO service will operate on a dual business model.
The first model is one where the franchisee will invest in tractors and equipment to rent them out and set up a hub for operations. TRRINGO will use a proprietary digital platform as an enabler to process orders and pass them on to the nearest franchisee through location based mapping. It supports easy accessibility and service through a dedicated App and a toll-free number. Franchisee could also tie-up with tractor owners in the vicinity enabling them to rent out equipment to farmers on a commission basis.
In the second C2C business model, large farmers who own expensive, high-end equipment can rent out their assets thereby optimizing utilization based on seasonality, cutting across geographies. TRRINGO would connect the asset owner to the user through the App. The initiative will drive the mechanization of the Indian agricultural sector, enabling smaller farmers to access technology that can boost their yields and thereby overall farm prosperity.
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The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.
A USD 16.9 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.
In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.
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