VST Tillers & Tractors to Invest ₹100 Cr in its Hosur Global Tech Centre

The proposed tech centre will accelerate EV development, proprietary technologies, more testing and international collaborations.

VST Tillers & Tractors, a top manufacturer of farm equipment and tractors, is all set to boost its R&D functions. It has plans to establish a global tech centre at Hosur in Tamil Nadu.

This new tech centre will accelerate EV innovation, develop proprietary technologies, boost testing capability, and foster international collaborations. It will serve as the company's primary R&D hub, working on electric powertrains, battery technologies, and advanced driver assistance systems. The centre will handle the development, testing, and validation of advanced, reliable, and safe electric vehicles. 

The company will invest around ₹100 crore in putting up the global R&D centre in phases. In the last three-four years, VST invested ₹100 crore, according to Arun V Surendra, Chairman, VST Tillers & Tractors, a VST Group of Companies firm, in the company's latest annual report. These continuous R&D investments will help the company create new solutions by understanding farmers' changing needs, he added. This Bengaluru-headquartered firm is working on at least 10 new products, including EV models.

Targeting the US Market:

The Chairman also informed that the company was committed to building its presence in emerging markets. In April, VST incorporated a wholly-owned subsidiary, VST Americas Inc., in the US to take care of the requirements in that market pertaining to the tractor and farm machinery segment. This opens up new avenues for growth for the company. The company's products are expected to hit the US market by FY26.

VT Ravindra, Managing Director of VST Tractor, had told investors that the company had begun developing products specifically for the US market. This is different from their European approach, where VST entered in 2016 with compact products. These products met the EU regulations under the 'VST Fieldtrac' brand.

To further cement its presence in North America, VST has also set up a step-down subsidiary, VST Fieldtrac LLC, in the US. With a presence in more than 40 countries, VST has a presence in Europe, Asia, and Africa. VST’s international business share rose from 4% in FY20 to 8% in FY23 and 13.5% in FY24.  It posted an operating revenue of ₹968 crore in FY24, down from ₹1,006 crore in FY23, while profit after tax rose to ₹122 crore in FY24 (₹92 crore).

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