The global tractor market is estimated to reach $98 billion by 2028, growing at a CAGR of 4.4 percent during the forecast period of 2022-2028. The market is mainly driven by the increased demand for agricultural machinery, owing to the growth in the agricultural sector. Increasing farm mechanization rates, increasing automation in agriculture, rising labor costs, seasonal labor shortages, and shorter tractor replacement cycles are also contributing factors.
Moreover, the market is also driven by demand for equipment from the construction and mining industries. However, the market is restrained by the high cost of tractor parts and components. The Tractor Parts and Components market is highly competitive with a large number of players.
Established in 1997, Sietz is emerging as a leading tractor parts manufacturer in recent years thanks to its commitment to quality and unmatched customer service. Sietz manufactures more than 250 parts for tractor industries and supplies them directly to OEMs such as Escorts Kubota, Kubota Pune, New Holland, VST Tiller & Tractor, Claas India, Manitou, and Escorts Kubota (Railway Div and Construction Equipment Div).
The Evolving Market
“The tractor industry in India is seeing healthy growth of 7-8 percent per year, and this is expected to continue in the coming year. India is becoming a hub for tractor manufacturing, with exports to many countries providing good opportunities for all manufacturers of tractor parts. Quality has become a major expectation of customers from tractor manufacturers.
Only those companies who focus on quality and have strong systems in place will survive in this competitive market. Multinational corporations that sell high-quality products are competing with Indian producers, making it difficult for them to keep up,” shares Kranti Deepak Sharma, CEO, Sietz.
A Robust Range of Products
Sietz offers a wide variety of tractor parts for domestic and export models. Its key differentiators include high-quality products, competitive prices, and excellent customer service. The firm offers a variety of OEM products, including driver seats for domestic and export models, all types of fixed and adjustable front axles, three-point linkages, air cleaners, brake and clutch pedals, hydraulic tubing, chassis for tractors, front bumper, front axles bkt for various export models, and brake drum assy (pistons, covers & cylinder) for the railway and more.
The Differentiating Factor
Sietz distinguishes itself from its competitors by adhering to best practices, such as Kaizen, TPM culture, and other best practices in inventories and cost optimization, to ensure a value-added supply chain for its customers. It also supplies materials such as JIT and DOL to many OEMs and is well-awarded as the single source for many parts. Since its inception in the late 20th century, the firm has strived to be a leader in the tractor components
manufacturing industry and is proud to have emerged as a leading player in recent years, thanks to its commitment to quality and innovation.
Sietz provides value-added service to its customers to ensure minimum inventory at their end. The firm also gives value addition through various kaizen and cost-saving projects jointly. Moreover, Sietz constantly monitors quality ratings with customers to ensure that it delivers the right quality on time. Furthermore, Sietz follows ethical practices to provide customers with a positive experience.
Sietz’s state-of-the-art facilities allow it to produce the highest quality tractor components in the market. The firm’s team of skilled engineers is constantly developing new ways to improve its products. Sietz is committed to providing its customers with the best possible products and services and to continually improving its operations to ensure that it remains a top provider of tractor components.
Sietz has achieved many awards in the last couple of years, including the MSME Business Award 2022 for Best Practise implementation in Organization, the Best Quality Supplier Award from Escorts Kubota, and the Kaizen Award from Escorts Kubota (RED Div). Kranti Deepak Sharma, CEO of Sietz, was honored with the CEO of the Year Award 2020 from the Indian Achievers Award, the Quality & Excellence Award 2020 from the India 500 CEO, and an Appreciation Award for Best CEO from the Chairman of Escorts Group.
An Exceptional Journey
Sietz has experienced significant growth over the past few years. In 2019-20, the firm saw a growth of 140 Cr. The following year, Sietz experienced an even more significant growth of 29 percent. Despite the recession of 2021-22, the firm saw growth of 5.4 percent and is expecting growth of 30 percent in 2022-23.
Sietz has four plants in Faridabad, each headed by a plant head and supported by team members responsible for various areas. All plant performance is reviewed monthly, with good controls and key performance indicators in place. The team members share experiences about new product development, quality, and other activities to ensure that learning flows horizontally and vertically across all plants.
Excellence is not a destination; it is a continuous journey that never ends
Leveraging Best Practices and Methodologies
Sietz follows the best practices of industries, such as Kaizen Drive in Sietz to involve all employees in ideas for Cost, Quality, Productivity, 5s, and Safety. There is also inventory control in every area with a weekly monitoring system with SCM. In addition, the company does ZBC of all parts to get the right value of parts, whether buying from a vendor or supplying to customers. Furthermore, the company has product price control by ensuring strict control & discipline in BOM and Material issuance. Finally, the company does root cause analysis & implementation of action to ensure continued quality improvements in Sietz. Engagement activities are also done from time to time to keep employees engaged. Lastly, employee training is done in all Div of Sietz to enhance the Skill level of team members. Lastly, budgeting & controlling is done in every area of Operations.
A Promising Roadmap
“Kubota is a world-famous brand and expanding in India now. They grew very fast compared to many other Tractor Manufacturing companies in India. They are eyeing Leadership positions in Indian Tractor industries in the next five years. We enjoy good business relationships with them, and they are committed to developing their suppliers with their vast knowledge level in various areas of operations and good management tools that help to improve all areas”, shares Kranti Deepak Sharma, CEO, Sietz.
There is enormous scope for business in India, and a focus on quality and automation is necessary to maintain consistency in quality and productivity to meet the demands of both domestic and export markets. Many multinational companies now consider India a global hub for their procurement needs, and Indian component manufacturers have great potential to grow their businesses.
“Our all OEM like Escorts Kubota, CNH, Kubota, Class, Manitou, and more is growing in domestic as well as exports segment which is an excellent sign for growth of components manufacturer. Also, India is becoming Hub for Export Market through Strategic sourcing for Components. So as a Sietz we are eying on the export market of components to supply parts globally through our exiting OEM”, concludes Kranti Deepak Sharma, CEO, Sietz.