Greaves, which had already entered the industry with 50 hp tractor during end-1998, will manufacture `Solaris' tractors in the range of 25, 35, 45 hp at its Ranipet plant in Tamil Nadu, company sources said. To endorse the decision, Greaves will seek the shareholders' nod at its proposed EGM to be held on March 8, 2000 in Mumbai. However, the mode of raising funds are not yet known, it is learnt.

The new joint venture, expected to be operational from April, 2000, is likely to be managed and controlled by the Italian partner apart from providing technical knowhow for the new tractors, the sources said.

``As part of its endeavour to become one of the major player in industry, Greaves has decided to exploit the latest technology of Same by offering 50 per cent stake to Italian major,'' sources said. The company had earlier entered into an technical tie-up with the Italian major in 1994.

Having established the product and marketing network for tractors in India, Greaves felt it is prudent to also enter into volume business in addition to the existing niche market. By joining hands with Same, the company expects to penetrate into the domestic niche market which is growing 15 per cent annually.

The engines will be sourced from its engines division at Ranipet. The new tractors are expected to be in the market in a year's time, the sources said.

The tractor industry's future is safe, secure and positive as the agriculture remains the mainstay of the economy and continues to receive high priority from the Central government, the sources citing the reason for Greaves' major foray into this industry.