Gauging the extensity of agricultural equipment rental services to farmers in the rural area, Mahindra’s Farm Equipment Sector (FES) is venturing into the space with the launch of its new start-up Trringo.
Thus, eyeing to be the country’s foremost organized rental service- through franchisee based model- Trringo will offer rental tractors to those farmers who may not be able to afford their own tractor and farm equipment. These farmers can book the tractors through toll free number or a dedicated mobile app. The service will start from June this year and will be scaled up to five states by August. Further, Trringo will also venture into international markets.
Rajesh Jejurikar, President & Chief Executive Farm Equipment & Two Wheelers, Mahindra & Mahindra Ltd said “Trringo will be an e-commerce startup which will provide the brand promise of equipment availability, commitment and performance, to transform lives of farmers, enabling them to grow. We hope to ramp up this offering to five states this year".
The service will operate on a dual business model, the first model is one where the franchisee will invest in tractors and equipment to rent them out and set up a hub for operations. Trringo will use a proprietary digital platform as an enabler to process orders and pass them on to the nearest franchisee through location based mapping. Franchisee could also tie-up with tractor owners in the vicinity, enabling them to rent out equipment to farmers on a commission basis.
In the second C2C business model, large farmers who own expensive, high-end equipment can rent out their assets, thereby optimizing utilization based on seasonality, cutting across geographies. Trringo would connect asset owner to the user through the App.
Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd. said, “In our country where farm mechanization penetration is low, Mahindra would like to play a significant role in enabling our farmers to improve their productivity and grow by providing accessible technology. The Trringo farm equipment rental business model will enable farmers to deploy mechanization technology on a pay per use basis without investing in the asset. This will increase their output and prosperity and lead to the inclusive growth of the nation”.
The tractor and equipment rental market is currently valued at about Rs 15,000cr annually.