Technology Transfer of 10 HP Mini Tractor
The Gujarat Grassroots Innovations Augmentation Network (GIAN), Ahmedabad has recently undertaken the technology transfer of the 10 HP Mini Tractor to M/s Pramal Farmatics (P) Ltd. a company based out of Vittal Udyognagar, near Anand. The deal, which is valued at upwards of Rs. 1 crores has been structured into four components, which are:
- cash down payment
- sales linked royalties
- equity stake for the innovator of the technology
- exclusive dealership rights for two districts of Gujarat for the innovator.
The technology transfer agreement gives the licensee exclusive rights to manufacture and market the 10 HP mini tractor in the states of Gujarat, Maharashtra, Rajasthan, MP and UP under the "Vanraj" brand. The tractor is being promoted by GIAN and the Society for Research and Initiatives for Sustainable Technologies and Institutions (SRISTI), on behalf of the grassroots innovator Shri. Bhanjibhai Mathukia, who hails from a small village in the Jungarh District. GIAN and SRISTI are part of the Honey Bee Network, which was set up by Prof. Anil K Gupta of IIM Ahmedabad, with the objective of recognising, awarding and promoting grassroots innovations and traditional knowledge of India. Since its inception in 1997, GIAN has successfully undertaken 13 such technology transfers of grassroots technologies to entrepreneurs.
The 10 HP tractor is a small, low cost and highly efficient tractor which has the potential of filling a vital demand gap which exists in the Indian market today. While the smallest tractors currently available in the market are in the 24 HP range and generally cost upwards of Rs. 2.25 lacs, there is a large chunk of farmers, especially those owning small land holdings, who cannot afford to buy these tractors. These farmers are left with the option of either using bullocks, which are becoming increasingly uneconomical to own, or using power tillers, which have serious usage limitations, especially in the Indian context. The "Vanraj" 10 HP tractor, being promoted by GIAN, has the potential of filling this crucial demand gap by giving the farmers the choice of owning a tractor at a highly affordable price.
The innovator had developed the 10 HP tractor in his village in Junagarh out of the various readily available components and assemblies.. For example, he had used the gear box of an old Mahindra jeep, front tyres of the Fiat Padmini and rear wheels of the Mahindra jeep etc. The innovator had used the fixed speed "stationary" engine, which are widely available in the Rajkot belt and are normally used for pumping water. Also, given that his village was located close to Rajkot, which is major foundry hub, he was able to get some components and parts manufactured The "crude" prototype was taken up by GIAN for incubation and further commercialisation.
The first activity undertaken by GIAN was to develop a business plan for the tractor. The Student Organisation for Managerial Assistance (SOMA), which is a fully student run group with the Indian Institute of Management, Ahmedabad and which provides business consultancy services to NGOs and small businesses, was contacted and a business plan was developed. SOMA recommendations regarding the feasibility of the project were encouraging particularly in states like Gujarat, Rajasthan and MP, where the soil conditions and the farm holding pattern was favourable to the acceptability of the product.
Based on the result of the study and the subsequent internal assessment, it was decided to provide active support to the project. The technology road map, in terms of the technical and design value additions that were needed before taking the tractor to the market, was charted. A competent technical consultant, having experience in the areas of hydraulics and tractor technologies, was hired to head the technical team, which also comprised the innovator and a coordinator
from GIAN.
The funding for the project was raised from the Technopreneur Promotion Programme (TePP) scheme of the Department of Scientific and Industrial Research. A detailed proposal was submitted which was subsequently approved and a prototype development and technology value addition grant to the extent of Rs. 6 lacs was approved. The technical value addition work was completed over a period of months and the modified prototype was undertaken for field trials. The National Institute of Design, Ahmedabad, with whom GIAN had an MoU for collaborative work on innovations requiring design inputs, was involved later in the project for aesthetic design and styling. (The photographs of the tractor before and after the value addition are as shown in the attached Annexure). It would be pertinent to mention here that the value addition was done without making alterations to the basic value proposition of the tractor especially in terms of low cost, easy maintainability and high manoeuvrability. The technology improvements were done to either improve upon these features or to increase performance and endurance. Therefore, a customised transmission system was developed, because the one existing was not suitable for farm operations. A power take-off shaft (PTO), which significantly increases the usability of the tractor by providing a source of mechanical power on the farm, was also added. After the successful completion of the field trials, the tractor was submitted to the Central Farm Machinery Testing Institute, Budni, MP, where it is currently undergoing testing.
The licensees of the technology, M/s Pramal Farmatics (P) Ltd, is a company promoted by two technocrats, Mr. J.D Patel and Mr. J.H.Trivedi, both having professional experience of 25 years in the industry. Given the market demand for the product, the robust technology and the sound background of the promoters, the project is expected to be a big success and also a successful demonstration of the value chain that GIAN is trying to build around grassroots innovations to bring them to market.
It would also be pertinent to mention here that GIAN is currently very actively working on 15 other grassroots technologies which it expects to bring to market in the next 12 months.
For further details, please feel free to contact the following:
Mahesh Patel
Gujarat Grassroots Innovations Augmentation Network (GIAN)
Bungalow No. 1, Satellite Complex (Opp. Mansi Tower)
Satellite, Ahmedabad - 3800015
ph: 079-26769686
fax: 079-26760398
email: gian@gian.org
Mo: 9825304425 / 9825304421