At the recent CII India Africa Business Conclave in New Delhi, Mr. Priyank Kalra, Head of International Sales, International Business at Escorts Kubota Limited, highlighted the opportunities and challenges in Africa. With a strong foundation in the European market, Mr. Kalra has transitioned his expertise to the emerging markets of Africa, bringing with him a wealth of experience and a refined skill set.
From Europe to Africa: A New Frontier
Reflecting on his background, Mr. Kalra noted, “The shift to Africa presented a new set of challenges and opportunities. Transitioning to the African market was indeed a significant change. Unlike Europe, where the market is well-established, Africa is still emerging. The way of doing business here is entirely different from what I was used to in Europe.”
This difference is particularly evident in the approach of African governments towards self-sufficiency. “It’s fascinating to observe how governments in Africa are increasingly pushing for self-sufficiency, driven primarily by the challenges of currency devaluation and limited foreign exchange reserves,” Mr. Kalra remarked.
Agricultural Mechanization: A Work in Progress
One of the key areas of focus for African governments is agricultural mechanization, which Mr. Kalra believes will play a critical role in the continent’s development. However, he highlighted the current gaps, saying, “African governments are focusing on food sufficiency programs, which will eventually drive agricultural mechanization. However, there are still considerable gaps on the ground. Clear policies are lacking, and there’s no unified vision from the African Union on how to proceed with agricultural mechanization and achieving food self-sufficiency. Each country is trying to cope with these challenges independently, which leads to varying approaches and progress.”
He also pointed out the challenges in aligning government support with the purchasing power of farmers. “We must encourage governments to adopt mechanization rapidly. However, there’s a disconnect between the purchasing power of the farmers and the level of government support, which creates a significant challenge,” Mr. Kalra observed.
A Strategic Partnership
In 2022, Escorts and Kubota Corporation, Japan decided to strengthen their partnership aligned to their vision of global leadership in farm mechanization and spreading farming prosperity. Mr. Kalra believes that this partnership has been pivotal in enhancing the company’s market presence. “I believe that this partnership will further strengthen our technology leadership and market presence in the material handling equipment space,” he stated.
Adopting a Japanese Mindset: Building Long-term Partnerships
Escorts Kubota has also embraced a Japanese approach in its operations in Africa, focusing on long-term relationships rather than one-time sales. “Now we have adopted a Japanese mindset in our approach. Our goal is not just to make one-time sales; we aim to become long-term partners with governments, distributors, and other entities. We work closely with them from the beginning, analyzing their needs, recommending the right products, and providing on-the-ground services, training, and infrastructure support. This collaborative approach is essential for success in the African market,” Mr. Kalra explained.
Currently, Escorts Kubota has a presence in around 18 African countries, with plans to expand further. “We have identified approximately 24 countries where we want to establish a strong presence due to their market potential. We are taking a step-by-step approach, engaging with distributors and governments to build lasting partnerships. Our unique selling proposition is trustworthiness—we remain partners until the end. We don’t leave our partners midway just to make profits,” he affirmed.
Addressing Affordability and Building Trust
One of the major challenges in the African market is affordability. Mr. Kalra emphasized the need for government intervention to support farmers. “Affordability remains a significant issue. While there are affluent farmers with the financial means to purchase agricultural products, a large segment of the farming community still struggles with affordability. This is where governments need to play a crucial role by providing low-interest credit options to enable these farmers to buy tractors and other essential equipment, helping them achieve self-sufficiency at least within their counties or states,” he said.
Building trust in a competitive market is another key focus for Escorts Kubota. “The African market is flooded with manufacturers from China, Turkey, India, and other countries, leading to confusion among customers about whom to trust. We are working hard to build that trust, leveraging our Indo-Japanese identity and our reputation for reliability,” Mr. Kalra pointed out.
Innovating for the African Market
In response to the unique needs of the African market, Escorts Kubota has introduced products tailored specifically for the region. “Recently, we launched a 110 HP tractor with our own transmissions, tailored specifically to meet the needs of the African market. We are committed to providing products that are both viable and feature-rich for this region,” Mr. Kalra shared.
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