There is another significant and perennial issue- the cost of machinery. For small and marginal farmers, the cost of buying machines is often prohibitive and outside their reach. Bajaj says Balwaan Krishi wants to tackle such issues. In a conversation with ET Digital, Bajaj talks about the ways to drive affordability in farm machinery and designing it to meet an Indian farmer’s requirement. Edited excerpts.
ET: How did the idea of Balwaan Krishi come about and when?
Rohit Bajaj (RB): I am a third-generation entrepreneur and my family’s legacy business is in the iron and steel industry. But I yearned for a new path.
I attended a new tractor launch event in 2016. During this event, while interacting with farmers, I noticed an issue. Most farmers were keen on acquiring farm machinery, but the high cost of tractors posed a significant barrier. Recognizing the potential business opportunity and driven by the entrepreneurial spirit inherent, the idea took root. Understanding that 85% of farmers in India were small and marginal, unable to afford expensive equipment, I teamed up with my cousin, Shubham Bajaj, to address this gap. On June 10, 2016, we founded Balwaan Krishi, aiming to provide affordable and practical farm equipment tailored to the needs of small-scale farmers.
At first, we started our business with our own funds, which added up to a sizeable amount of Rs. 20 lakhs. We also borrowed money from our families and together with our personal savings started the company.
ET: What problem is Balwaan Krishi trying to solve?
RB: Balwaan Krishi aims to tackle the challenges faced by India’s small and marginal farmers, where 25% of costs involve agricultural inputs (seeds, fertilizers, agrochemicals), and 75% are operational, including labour expenses.
With the increasing burden of labour costs, our equipment is designed to reduce labour-intensive activities, improving farming practices, increasing yields, and easing financial pressures on farmers. By offering reasonably priced farm equipment, we strive to lower costs and enhance productivity, contributing to the growth of Indian agriculture. Balwaan Krishi envisions a future where farmers thrive, operational costs are minimised, and the agricultural industry prospers through the fusion of innovative technology and accessibility.
ET: Did you manufacture the products from the start or did you start with imports and then ventured into manufacturing?
RB: Initially, we sourced products from China, but in the last fiscal year, we initiated a significant shift by launching a substantial manufacturing project. As a brand committed to rural development in India, we prioritize accessibility and reducing dependency on external sources.
Our manufacturing facilities are located in Jaipur. The goal is to establish a nationwide network facilitating easy access for our dealers and wholesalers. Looking ahead, our commitment intensifies, with a vision that 80% of our machines will proudly bear the “Made in India” label within the next two or three years. We have already taken the first steps with the production of our “Made in India” mini-tillers and earth augers drill.
ET: What are the different types of equipment you manufacture?
RB: Our manufacturing hub in Jaipur is complemented by an extensive ecosystem in the surrounding areas. Emphasizing the creation of lightweight equipment for the convenience of female farmers, we have introduced earth augers and mini trailers. Our product range extends to include water pumps, sprayers, weeders, tillers, harvesting equipment, and much more.
![[ L to R ] - Shubham Bajaj and Rohit Bajaj, Co Founders - Balwaan Krishi (1).](https://img.etimg.com/photo/msid-105926485/-l-to-r-shubham-bajaj-and-rohit-bajaj-co-founders-balwaan-krishi-1-.jpg "[ L to R ] - Shubham Bajaj and Rohit Bajaj, Co Founders - Balwaan Krishi (1).")
(L to R) Shubham and Rohit Bajaj, Co-founders, Balwaan Krishi.
In alignment with our commitment to promoting local industries, we are actively expanding our supplies from Indian vendors. This not only strengthens our manufacturing ecosystem, but also contributes to the growth and sustainability of the broader Indian manufacturing sector.
ET: What is the capex you have made to set up manufacturing, distribution, and sales channels?
RB: We have focused a significant amount of our capital expenditures (capex) on several vital aspects of our company’s operations. It has been essential to establish a dependable distribution network, and nearly $1 million has been invested in the construction of facilities for warehousing, logistics, and transportation to ensure that products can be shipped and sold.
We have earmarked approximately $0.5 million to enhance our research and development (R&D) efforts, encompassing the development of a skilled engineering team and the establishment of testing and assembly plants.
ET: Farm machinery is a crowded space with several national and international players. How are you placed and what is your USP?
RB: Balwaan Krishi has created a moat through its strong pre-advisor and robust after sales network. The first thing that sets us apart is our consistent dedication to meeting the unique needs of small and marginal farmers. Another thing that sets us unique is our commitment to pricing without sacrificing quality. We provide high-performance equipment at affordable pricing.
We place a high value on the total farming experience. Our products are complete solutions, not just tools, and they come with thorough training and support. We make sure farmers are aware of how to maximise the advantages of our equipment.
ET: Indian farms are mostly smaller than three acres and most farmers cannot make big-ticket purchases. How can your products address the problem of affordability and usability of technology among small farmers?
RB: Balwaan Krishi is committed to addressing the challenges faced by small farmers in India. Our product range, priced from Rs 5,000 to Rs 90,000, is affordable and pocket-friendly. To further enhance accessibility, we will soon introduce EMI options.
Our machines are not only cost-effective but also multipurpose, using the same engines for various operations. This adaptability ensures efficiency and affordability. We also provide affordable service and spare parts.
Recognizing the importance of usability, our tech and design teams work hard to create user-friendly tools, supported by simple instructions and multilingual assistance. Comprehensive training programs empower farmers to make the most of our products.
With service and delivery centers strategically located in key regions and plans to expand into Maharashtra and Chennai, our focus remains on strengthening our presence in the Indian market.
ET: What were your sales last year and what do you expect it to be this year? Please provide revenue numbers of the last 3 years. How many farmers are you working with and where are your sales primarily concentrated around? How do you handle service and support of these equipment?
RB: Over the past three years, Balwaan Krishi has shown consistent revenue growth, achieving Rs 32 crores in the last fiscal year (FY 22-23). We are projected to clock Rs 60 crores for the current fiscal year (FY 23-24) and have set an ambitious target of surpassing Rs 100 crores in the upcoming year (FY 24-25).
Balwaan Krishi’s warehouse in Jaipur.
Our strategic expansion plan involves establishing a robust online presence on e-commerce platforms and increasing our offline dealer network throughout India. Currently, we have 550 dealers, and our goal is to grow this network to around 3000 dealers.
Our primary sales are concentrated in Rajasthan, Himachal Pradesh, and Uttar Pradesh, with active expansion into West Bengal and other eastern states. To support this growth, we have strategically set up warehouses exceeding 40,000 square feet in Jaipur (Rajasthan), Lucknow (Uttar Pradesh), Mandi (Himachal Pradesh), Kolkata (West Bengal), and Guwahati (Assam).
ET: What is the status of agricultural mechanisation in India and how do you propose to make a dent?
RB: The status of agricultural mechanisation in India hovers around 40-45%, with substantial 90% share in certain first and last stages of the cropping cycle like land preparation and threshing. However, intermediate steps such as seeding, spraying, irrigation, and inter-weeding see only minimal mechanisation because of challenges posed by large machines, especially in small and hilly terrains.
To bridge this gap, Balwaan Krishi adopts a combination of large and small machines working synergistically in Indian fields. Our machines are designed to be small, lightweight, and versatile, facilitating easy operation in small areas, inter-cultivation, and interweeding operations. This design consideration addresses the limitations faced by larger machines, making them suitable for diverse terrains, including hilly regions.
We believe that achieving over 90% mechanization in India requires a balanced integration of both large and small machines, working collaboratively to enhance efficiency across all stages of the cropping cycle.
ET: What are the challenges of agricultural mechanisation and what are the challenges you face?
RB: The challenges that come with mechanising farming are many and include both possibilities and problems. One of the biggest problems is that Indian agriculture is spread out over a wide area. India’s farming is very different in terms of crops, methods, and the size of farms. So, when it comes to technology, there is no one-size-fits-all answer. It can be hard, but is very important to meet the unique needs of farmers in different areas and with different means.
Another big problem is that farmers cannot always afford the tools they need. In India, many small-scale farmers do not have a lot of money, which makes it hard for them to buy expensive tools. This lack of money can make it hard for people to use machines, especially those who need them the most.
Products of Balwaan Krishi at a warehouse.
Also, you cannot stress enough on the importance of right skills and technical know-how. Even though machines can make work much easier, they also need to be run by skilled people. A constant problem is making sure farmers get the right training and help so they can use the tools well.
But it’s important to realize that there is no quick fix. To solve these problems and make real changes in Indian agriculture, it will take a long-term commitment to innovation and cooperation with stakeholders in the agricultural ecosystem.
ET: Are you cost competitive? How have you kept costs low and be affordable?
RB: Certainly, our pricing strategy is crafted to offer a competitive edge in the market. We take pride in providing products that are not only 40% more affordable than those offered by multinational brands but also positioned at a 20% premium compared to locally imported Chinese products.
This deliberate pricing structure is a strategic balance that we maintain. It allows us to uphold quality standards in our products while ensuring robust after-sales support for our customers.
ET: Why have you decided to be on ecommerce sites like Amazon and Flipkart? Most small farmers would not have access to such sites.
RB: We know how important it is to reach all kinds of farms, even those who might not have direct access to online shopping sites like Amazon and Flipkart. Even though many small farmers may not use these websites often, we chose to be on them for a few important reasons.
First, e-commerce platforms make your products more visible and easier to get to for a larger audience, including customers in cities and semi-cities who may also be interested in farming or gardening. These people often need tools and equipment for farming for their own needs. Second, being on sites like Amazon and Flipkart lets us meet the needs of distributors, dealers, and agricultural service providers who buy equipment in bulk and send it to rural areas where small-scale farmers live. Because of this indirect reach, we can offer our goods and services in faraway places.
Third, doing business online helps us build trust and reputation in the market. Before buying something, customers often look up information about it online and read reviews. Having a presence on reputable e-commerce platforms gives buyers confidence in the quality and authenticity of your products, no matter where they live.
Currently about 50% of our sales are conducted online through various platforms, including our company’s e-commerce site, balwaan.com, as well as platforms like Amazon and Flipkart. Looking ahead, we anticipate growth in both online and offline channels, with offline sales projected to hold 70% of the overall share.
ET: Did you raise funds? Who were your investors and how much did you raise?
RB: We have raised a pre-Series A funding round that brought in $2 million. The Caspian Leap for Agriculture Fund, a specialized agriculture fund run by Caspian Equity, oversaw the round. We are also glad that well-known angel investors like Deepak Agarwal, Rishab Jain, Pulkit Bachhawat, and others are joining us in this endeavour. Right Pillar Advisors and SkwerUp Capital Partners have been the financial and legal advice for us.
