For sure, the most important CLASS’ LTO is the competitive position. Indeed, in order to stay competitive, CLAAS company stay always in motion, we continuously develop even better solutions for our customers. CLAAS don’t want to just follow trends; we produce what we consider to be the best and we want to maintain the quality of our innovative products as high as possible. Weare driven by our high commitment to innovation and quality. Our customers have an entire trust in our products and this is our great advantage on our competitors but we don’t want to fail in their expectations. That is the reason why we didn’t renew contracts why our Chinese suppliers with whose we had some quality problems in the past year.
Quality and technology are our strengths. Since thelast five years we became the technology leader in the agricultural field but the future is not assured and we have to maintain our R&D department efficiency. That is why we decided to increase our R&D budget from € 122.6 Million to €125 M for next year and planned creation a new R&D department in Mumbai (India) for 2015.
Future; we always keep future in mind. The Indian market is exponential;sales have increased of 47%! We have decided to open two new factories in the coming years, one more in Faridabad and one in Jaipur. This will allow us to increase our production capacity of 13% in five years. We also decided to create a school in Mumbai for training our future managers and engineers. The trend in China is still the same with a robust development; in this regard we are planning theopening of a new factory in Shanghai. But we try to develop the Chinese market where the potential customers traditionally prefer the workforce and the manual harvests instead of automatized and motorized harvests. CLAAS will organize several demonstrations all over China to convince of the benefits it can have. The Chinese government wants to restrict the use of such machines as it willautomatically increase unemployment among farmers. But in the other hand it provides better efficiency and is a tool of growth and development. We have to change the point of view of Chinese. By the same way, we open more and distributors in Asia.
In the long terms, we also want to increase our percentage of sales in the CIS countries; there is a huge demand in this area but only few suppliers. In tenyears, this market can represent 12% of our sales currently; it is now only 2.7%. The BoD emphasized that this situation should be urgently solved. We created a team charged of analyzing the best location and we specify that the production should start before 2014.
CLAAS wants also to become more attractive. Thus, we will continue to put training in our priorities. As the new school in Mumbai willsoon illustrate our policy, the training of our future employees is a part of what allowed CLAAS to become the world agricultural equipment leader. We have high-skilled employees, experts in their field and above all loyal. As employees are the heart of the company, CLAAS is in the heart of each employee. They are strength and we are proud to increase the budget allocated to training by 5% for nextyear. We also want to create more partnerships with American, English and French universities.
Our generic strategy is to differentiate our products. Our customers think we are the best and we manage to stay the best. We bet on the technology advance that characterizes CLAAS. Our products are unique and farmers that view long-term instead of saving money rely on us. We possess a strong leading...