Tractors and Farm Equipment Ltd (TAFE), which is the third largest manufacturer of tractors in the world, has recorded a growth of 9.3 per cent growth in the first quarter of the financial year till June 2012. The sales of the company were 36,669 units compared to to 33,551 units a year earlier.

Chairman and Chief Executive Officer of the company, Mallika Srinivasan has said that she expects good prospects for the company as well as the industry segment in the long term. The company is aiming at a turnover of $2 billion during the year and is also looking at entering the international markets.

She said that the experts were expecting the market to slow down due to below average monsoon, but the company experienced a better quarter than the fourth quarter of eh previous financial year. She cited factors like rising support price of food grain during the years to say that farmers have been able to afford agricultural machinery.

She said, "Prices of foodgrain, increase in labour cost and non-availability of labour, which calls for mechanisation, and aspirations of farmers are some of the growth drivers. Farmers are ready to invest for better quality and productivity, and to make farming easier. All this will increase returns for us."

In 2011-12, TAFE sold 20,396 units across 73 countries and it is now planning to expand into new markets.