1.Company Information

Indo Farm Equipment Limited, incorporated in 1994, is a well-established manufacturer of tractors and pick and carry cranes. The company also manufactures other farm equipment, including harvester combines and rotavators, though these do not significantly contribute to its total revenue. As of Fiscal 2024, tractors represent 52.16% of the company's revenue, pick and carry cranes constitute 47.77%, and other products account for the remaining 0.07%. Indo Farm Equipment also operates an asset financing business through its wholly owned subsidiary, Barota Finance Limited, a registered Non-Banking Financial Company (NBFC) specializing in retail financing of tractors. The company's products are marketed under the brand names "INDO FARM" for tractors and "INDO POWER" for cranes. Pick and Carry Cranes represent a higher margin product for the company. They are utilized across various sectors including agriculture, infrastructure, construction, heavy engineering, and industrial projects. Indo Farm Equipment has a single manufacturing facility located in Baddi, Himachal Pradesh. The facility spans 127,840 square meters and includes a captive foundry unit and dedicated units for machining, fabrication, and assembly of both tractors and cranes. The current production capacity of the facility is 7,200 tractors per year and 1,800 cranes annually. Expansion plans include establishing an additional dedicated manufacturing unit for Pick and Carry Cranes, which would increase the capacity by 3,600 units per year. This expansion aims to capitalize on the anticipated growth in the infrastructure and construction sectors. While the company currently has a strong presence in North India, it plans to expand its dealer network across the country and increase its sales force. Indo Farm Equipment currently exports around 7% of its total sales, with a presence in various countries across Africa, Latin America, the Middle East, Central and Southeast Asia, and Europe. The company enjoys financing partnerships with several leading private and public sector banks in India for both its tractors and cranes.

2. Strenghts

1) Fully Integrated Manufacturing Setup: Indo Farm Equipment boasts a fully integrated manufacturing facility in Baddi, Himachal Pradesh, enabling in-house production of critical components for both tractors and cranes. This setup reduces reliance on third-party suppliers, streamlines production, and ensures cost and quality control. The company manufactures over 330 components for tractors and over 190 for cranes in-house, contributing to its competitive advantage.
2) Experienced Management Team: The company benefits from the leadership of an experienced management team with a proven track record of success in the industry. Their expertise has been instrumental in the company's consistent performance over the last two decades and its strategic direction for future growth.
3) In-house NBFC for Retail Financing: Indo Farm Equipment strategically established Barota Finance Limited, a wholly owned NBFC, to facilitate easy retail financing for its tractor customers. This integrated approach creates a seamless customer experience, promotes sales, and strengthens customer relationships.
4) Wide Product Portfolio: Indo Farm Equipment offers a diverse range of products, including tractors with horsepower ranging from 16 to 110 in both 2WD and 4WD variants, covering approximately 80% of the global market demand. The company also manufactures pick and carry cranes with capacities ranging from 9 to 30 tons. This wide range caters to diverse customer needs and market segments, boosting revenue streams.
5) Strong Presence in Multiple Countries: Despite exports currently accounting for only 7% of total sales, Indo Farm Equipment has a notable international footprint, with its products accepted in numerous countries across Africa, Latin America, the Middle East, Central and Southeast Asia, and Europe. This success demonstrates the company's capability to deliver high-quality products and after-sales services at competitive prices globally, positioning it well for future export growth.

3. Objects of the Issue

The Objects of the Net Fresh Issue is to raise funds for:
- Setting up new Dedicated Unit for Expansion of their Pick & Carry Cranes Manufacturing Capacity
- Repayment or pre-payment, in full or part, of certain borrowings availed by the Company
- Further Investment in NBFC Subsidiary (Barota Finance Ltd.) for financing the augmentation of its capital base to meet its future capital requirements.
- General Corporate Purposes

4.INDO FARM EQUIPMENT Limited Registrar

Mas Services Limited

Phone: (011) 2610 4142

Email: ipo@masserv.com

Website:  https://www.masserv.com/opt.asp