VST Tillers & Tractors, a prominent player in the agricultural machinery sector, is set to bolster its research and development efforts with the establishment of a global technology center in Hosur, Tamil Nadu. The center will focus on accelerating electric vehicle (EV) innovation, developing proprietary technologies, and enhancing testing capabilities, while also fostering global collaborations.
This facility will be the company’s main R&D hub, concentrating on electric powertrains, battery systems, and advanced driver assistance technologies to ensure the creation and validation of cutting-edge, reliable electric vehicles.
The company has earmarked ₹100 crore for the phased development of this global R&D center. Over the past three to four years, VST Tillers & Tractors has already invested ₹100 crore in R&D, according to the company’s latest annual report.
These ongoing investments are aimed at advancing the company’s offerings to better meet the evolving needs of farmers, said Arun V Surendra, Chairman of VST Tillers & Tractors, a VST Group company. The Bengaluru-based company is currently working on at least 10 new products, including electric vehicle models.
Expanding its global footprint, VST has also turned its attention to emerging markets, particularly in the United States. In April, the company established a wholly-owned subsidiary, VST Americas Inc., to cater to the U.S. market’s specific demands in the tractor and farm machinery sector. The company plans to introduce its products in the U.S. by FY26.
In a recent earnings call, Managing Director VT Ravindra revealed that VST is already developing products tailored to the U.S. market, which has different requirements from those in Europe, where VST has been active since 2016 with its ‘VST Fieldtrac’ range of compact tractors compliant with EU regulations. To further strengthen its North American presence, VST has also set up a step-down subsidiary, VST Fieldtrac LLC, in the U.S.
With operations in over 40 countries, including Europe, Asia, and Africa, VST has seen its international revenue share grow from about 4% in FY20 to 13.5% in FY24. The company reported an operating revenue of ₹968 crore in FY24, slightly down from ₹1,006 crore in FY23, while its profit after tax increased to ₹122 crore in FY24 from ₹92 crore the previous year.
