• Highlights TAFE’s integral role in building the Massey Ferguson brand in India over the last six decades
• Believes AGCO’s recent attempt to terminate TAFE’s right to use the Massey Ferguson brand in India violates the interim status quo order of the Commercial Court in Chennai
• Questions the timing of AGCO’s decision to terminate its long-standing partnership with TAFE after TAFE raised concerns regarding AGCO’s strategy and performance in its capacity as a long-term, strategic shareholder

CHENNAI, India--(BUSINESS WIRE)--Oct. 1, 2024-- Tractors and Farm Equipment Limited (“TAFE” or “we”) today announced that it has filed a contempt petition against AGCO Corporation (NYSE: AGCO) (“AGCO” or the “Company”) for violating an interim status quo order from the Commercial Court in Chennai by attempting to terminate TAFE’s right to use the Massey Ferguson brand in India. TAFE’s case regarding its ownership of the Massey Ferguson brand is ongoing in the Madras High Court.

In connection with the legal action against AGCO, TAFE issued the following statement:

“Since our inception in 1960, TAFE has produced, built, and nurtured the Massey Ferguson brand, which today offers a wide product portfolio of more than 500 models in India on the back of strong, indigenous research and development and quality control. We produce more than 100,000 Massey Ferguson tractors in India each year and serve in excess of three million customers. TAFE and Massey Ferguson are synonymous in India.

TAFE is the second-largest producer of tractors in India and the third-largest producer in the world, having established a reputation for reliable quality, which has helped us win the trust of farmers in India and in over 80 international markets. A strong distribution network of more than 2,000 dealers supports TAFE’s four iconic tractor brands – Massey Ferguson, TAFE, Eicher Tractors, and IMT. We have earned innumerable accolades for performance and parts supply from customers, industry bodies, media, and governments, including winning international recognition for quality and customer satisfaction.

TAFE’s products are India-centric in design, are distinctly different from AGCO’s products, and are ideally suited for small and medium-sized farmers in India and across the world. Our ownership of the Massey Ferguson brand is evidenced by the fact that for the last six decades, AGCO’s global brand website made no mention of Massey Ferguson in the context of India, Nepal, and Bhutan, with the Company having ceded the entire territory to TAFE since our takeover of Massey Ferguson India in 1960.

Prior to this year, we have enjoyed a successful, long-standing partnership with AGCO. We acquired a shareholding in AGCO in 2012 and have grown to become the Company’s single-largest shareholder with a long-term, strategic focus, thus strengthening the collaborative relationship between our companies. For more than a decade, we have signed ‘Letter Agreements’ that have assured AGCO of our steady support.

Unfortunately, AGCO has ignored issues that we have repeatedly called attention to, including flaws regarding the Company’s governance, wholly inadequate engagement with shareholders, and financial and operational underperformance in key areas. Rather than address these matters, AGCO has instead sought to stifle TAFE’s ability to seek changes through contentious and ill-advised moves with respect to brand usage – an area that has been uncontested and resulted in a fruitful partnership for nearly 65 years.”

About TAFE

TAFE TRACTORS is the signature brand of TAFE - Tractors and Farm Equipment Limited, an Indian tractor major incorporated in 1960 in Chennai, India, with an annual turnover exceeding $1.6 billion. As one of the largest tractor manufacturers in the world and the second-largest in India by volume, TAFE sells over 180,000 tractors annually.

TAFE has earned the trust of customers through its range of products, which are widely acclaimed for their quality and low cost of operation. A strong distribution network of over 2,000 dealers effectively supports TAFE’s four iconic tractor brands - Massey Ferguson, TAFE, Eicher Tractors, and IMT. TAFE exports tractors to more than 80 countries, powering farms in Asia, Africa, Europe, the Americas, and Russia.

Beyond tractors, TAFE and its subsidiaries have diversified business interests in areas such as farm machinery, diesel engines and gensets, agro-industrial engines, engineering plastics, gears and transmission components, hydraulic pumps and cylinders, vehicle franchises, and plantations.

TAFE is committed to Total Quality Management (TQM). In recent years, various manufacturing plants of TAFE have garnered numerous ‘TPM Excellence’ awards from the Japan Institute of Plant Maintenance (JIPM), along with several regional awards for TPM excellence. At the ITOTY 2024, TAFE – Massey Ferguson MF 8055 was awarded the best tractor for commercial application and MF6028 Maxpro won the best orchard tractor. In 2023, TAFE won the ‘Launch of the Year’ award for its Eicher PRIMA G3 range of tractors, in addition to three other prestigious awards, including ‘Best CSR Initiative’ for JFarm Services, at the 4th edition of the Indian Tractor of the Year (ITOTY) Awards 2023. It was also presented the Top Exporter Award from the Commissioner of Customs.

TAFE’s JRehab won the ‘Best Private Employer Award’ for the ‘Welfare of Differently-Abled Persons’ from the Tamil Nadu Government in August 2022. TAFE’s Madurai plant, Doddaballapur plant, and the JRehab Centre also won multiple gold awards at the Central Convention for Quality Concepts 2019, reflecting their unmatched commitment to quality. Strict adherence to safety standards led TAFE’s Sembiam plant to win four awards at the Safety Awards 2019, presented by the Directorate of Industrial Safety and Health, Government of Tamil Nadu. The ‘Unnatha Suraksha Puraskara’ Safety Award 2019 was also awarded to the TAFE Doddaballapur plant by the National Safety Council.

In 2018, TAFE became the first Indian tractor manufacturer to win the Frost & Sullivan Global Manufacturing Leadership Award, being recognized with the ‘Enterprise Integration and Technology Leadership’ award, as well as two ‘Supply Chain Leadership’ awards. In recognition of its outstanding contribution to engineering exports, TAFE has been named the ‘Star Performer - Large Enterprise (Agricultural Tractors)’ by the Engineering Exports Promotion Council of India - Southern Region for the 23rd consecutive time.

TAFE's tractor plants are certified under international standards ISO 9001 for efficient quality management systems and ISO 14001 for environmentally friendly operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241001348321/en/

Sunitha Subramaniyan, TAFE Chief Communications Officer: sunitha@tafe.com

Christopher Charles, Predict PR: charles@predictpr.com

Charlotte Kiaie, Longacre Square Partners: TAFE@longacresquare.com

Source: Tractors and Farm Equipment Limited