Description
Strategy is important because the resources available to achieve these goals are usually limited. Strategy is also about attaining and maintaining a position of advantage over adversaries through the successive exploitation of known or emergent possibilities rather than committing to any specific fixed plan designed at the outset.
COMPARATIVE STUDY OF EMPLOYEE RETENTION SATRATEGIES
TABLE OF CONTENTS Acknowledgement Declaration
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? Industry Profile ? Company Profile ? Origin ? Awards & models ? Manufacturing companies in India ? Competitors ? Introduction to project
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About the Organization: PTL
unjab Tractors Limited is an Indian Tractor manufacturing company that was established on June 27, 1970. It was India's first Large Scale Project, which was based on indigenous design and modern technology. It was a new venture towards making India more competent in the international scenario. PTL has four branches, all set up in northern India. PTL began its commercial operations in April 1974. In the 28 years till March 2003, it has sold more than 500,000 tractors. While the journey commenced in the north, PTL today has an all India presence. Its 377 strong dealer network sells and services a wide portfolio of 6 tractor models with more than 100 variants. Swaraj beginning was indeed humble, with the commercial introduction of Swaraj 724 model; tractor sales barely reached 600 in 1974-75. However, over the years, on the introduction of new tractor models, product performance and reliable service, Swaraj brand started receiving flavor with the farmers leading to an increase in both volume and market share. In 1999, two new models Swaraj 733 and Swaraj
744 were added to Swaraj portfolio. By financial 1998-99, all these initiatives took Swaraj to the No. 2 slot in the industry, hitting a peak sale of 50,700 tractors in 1999-00 (market share 18.6%).
Punjab Tractors Limited consists of following divisions: 1. SWARAJ TRACTORS DIVISION, SAS Nagar, Capacity of 300000 tractors p.a. 2. SWARAJ FOUNDRY DIVISION, Majri, Capacity 8000 M.T. castings 3. SWARAJ COMBINE DIVISION, Chhapar Cheri, Capacity of 300000 tractors p.a. These plants set up at most economic outlays, also represent the most productive tractor facilities in the country, with concept and the technology in the new plant matching global standards. Today PTL stands as a multi product multi location unit manufacturing Tractors, Harvester Combines, Industrial Forklifts, and Agricultural Implements and Automotive castings. PTL is actively participating in the industrial scene of Punjab through its group companies SWARAJ MAZDA LIMITED, SWARAJ ENGINES LIMITED
AND SWARAJ AUTOMOTIVES LIMITED.
Products:
The major products of Punjab Tractors limited are divided into two categories i.e. for domestic consumption and overseas consumption. The domestic products include the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Swaraj 855 Swaraj 939 FE Swaraj 834 FE Swaraj 744 FE Swaraj 735 FE Swaraj 733 FE Swaraj 724 FE Swaraj 722 Forklift 15 Forklift 20
11. Forklift 30 12. Electric Forklift 15 13. Swaraj 8100-Harvester Combine
The products for overseas consumption include:
1. 2. 3. 4. Swaraj 978 FE, 4 Wheel drive Swaraj 978 FE, 2 Wheel drive Swaraj 855 FE, 4 Wheel drive Swaraj 939 FE, 4 Wheel drive
Hierarchy of the Organization:
1. Board of Directors (B.O.D) 2. Working Directors: Vice Chairman and Managing Director 3. Executive Directors: Finance, Human Resource and Development, Manufacturing, International Business Division, Material Services, Swaraj Automotive Limited, Swaraj Motors Limited, Senior VicePresident (Marketing) 4. Vice Presidents: 3-4 under each Executive Director in level 3 5. Assistant Vice President 6. General Manager 7. Chief Manager 8. Senior Manager 9. Manager 10. Assistant Manager
11. Senior Engineer 12. 13. 14. 15. Engineer Assistant Engineer Junior Engineer Operating Class
Employee Strength:
The total numbers of employees currently under the Mohali division of PTL are around 1600. These comprise of 500 in management staff and rest is working staff.
Financial Information: Annual Turnover for the financial year 2003-04 Net Profit = Rs. 641.44 crores
= Rs. 43.11 crores
%age turnover spent on Research and development = 1.28% Market Share Earning per share = 15 % = Rs. 7.10
1. Power Consumption: The total power consumption last year was
117.83 lakh units.
2.
Water consumption: No records were kept for water consumption as
the net amount spent on water resources was negligible. 3. Diesel Consumption: The average amount of diesel consumed per tractor last year was 619.11 Rupees. This includes consumption in both assembly and paint shop.
Technical Collaborations: 1.For Light commercial Vehicles:
P.T.L. entered into technical and financial collaboration with Mazda Motor Corporation of Japan in the year 1984 to set another company by the name of Swaraj Mazda Limited. It was Rs. 50 crore projects with an installed capacity to manufacture 5000 LCVs of up to 3.5 tones payload capacity.
2. For Forklifts
The company entered into technical collaboration with KOMATSU FORKLIFTS COMPANY of Japan in 1985 for the manufacture of high tech forklifts of both diesel and electric at its combine division.
3. For Diesel Engines
P.T.L.set up Swaraj Engines Ltd. (S.E.L.) in technical and financial collaboration with Kirloskar Oil Engines for the manufacture of diesel engines.
Competition within India:
The major competitors for PTL in India are Mahindra & Mahindra Tractors, Massey, Escorts, Eicher and HMT. The trends of market shares for the last 30 years are shown in the figure below. We can see that the market share of Swaraj tractors has increased from 9.1% in 1983 to 15% in 2003. Also the ranking has improved from 6th to 3rd. This is the sign of growing organization well on track to become the largest producers of tractors in India. On the international scene, Swaraj is now a recognized name in the developing world. Swaraj Tractors find an important place in countries like Ghana, Zambia, Kenya, Sudan, Indonesia, and Malaysia etc.
Pollutants and Pollution control measures:
1. Water Pollution: There are two kids of effluent waste that pollutes water
• Industrial effluent: Process water after use is discharged as effluent.
Industrial effluent is contaminated with pH imbalance, sulphates, chlorides, dissolved solids, suspended solids, oil and grease.
•
Domestic effluent: Domestic use consists of drinking and canteen
water consumption apart from toilets. Domestic effluent is discharged into public sewer directly.
2.) Air Pollution: Major contributors to air pollution are:
• • • • Shot-blasting section Painting booths Baking oven D.G. sets
Major air pollutants include SPM, NOx, SO2.
3. Land Pollution: The following solid wastes case land pollution:•
Paint waste scum, sludge from ETP Steel scrap
•
Pollution Control Measures:
1.) Plantation of trees. 2.) Expenditure of 5 lakh rupees per year for environmental management and pollution control activities. 3.) Effluent Treatment Plant for Industrial Effluent Treatment. 4.) Bag House Filter for the Shot Blasting Sections. 5.) Fume Extraction System for the pre-treatment process. 6.) Filter press for the extraction of water contents from the effluent sludge.
1. Production
• Light machine shop (LMS) • Heavy machine shop (HMS) • Assembly shop • Heat treatment shop • Paint shop
2. Product services
• Tool room
• Tool Design • Tool Control • Research & Development • Production planning & control (PPC) • Material Management & control (stores) • Quality Engineering • Maintenance • Industrial Engineering
3. Support Services
• Management systems • Finances. • Purchase The tool design cell, it is a part of Manufacturing Aids unit of Technology department. Designing of various Jigs and Fixtures, gauges, special tools, trolleys (material handling), shop equipment and dies etc. is done here. The design is based on design requests from Customer Department. After designing the drawings are sent to engineering tool room for fabrication..
Origin:
The increased need for aesthetics in any design led to a total redesigning of bonnet and side panel designs of tractors. Swaraj does not want to lag behind. It understands the need of modern day agriculture which is not only based on performance but also the aesthetics of the design.
Methodology:
The methodology of designing includes the following. The R & D department sends component drawings of the new part. They take care of all
the design and aesthetic parameters. It is the job of tool design cell to make the necessary component before the deadlines. So the following steps are involved:1.) Process Planning 2.) Design of required dies, tools, fixtures 3.) Fabrication
Trials
After above steps, the actual components are manufactured and sent to R & D who suggest possible modifications and also check the design. Once the design is cleared, the large scale manufacturing is done and new models are rolled out.
New Knowledge:
The following is the brief information about what is being done at PTL, Mohali.For the manufacture of tractors following procedures are performed Manufacturing and Machining of gears and shafts. (Light Machine Shop) Machining of Rear Cover, Gear Box Cover, Trumpet and Differential Cover (Heavy Machine Shop)
Assembly
1.) Differential Sub Assembly 2.) Gear Box Sub Assembly 3.) Engine Sub Assembly 4.) Rear Cover Assembly 5.) Main Line Assembly
Chassis Painting Line
1.) Chassis Washing 2.) Drying 3.) Primer Painting 4.) Flash Off 5.) Final Painting 6.) Baking
Tractor Dismounting
? ? ? ? Tires Sheet Metal Electrical components Final Accessories or assemblies
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Roller Testing
Heat Treatment
The transmission components (manufactured at LMS) after undergoing machining operation are subjected to heat treatment. Heat treatment is carried out in sealed quench furnaces where gas carburising takes place at 920°C. Hot components are cooled in quenching oil. This treatment helps to enhance strength and hardness of the component and thus increases its lifetime. It is also known as case hardening.
Shot Blasting
After heat treatment the components are treated in the shot- blasting to remove the scaling of the components.
Pre-Treatment
Sheet metal is pretreated before painting. Pre-treatment takes place in the following stages: 1. 2. 3. 4. 5. Degreasing De-rusting Phosphating Surface-Activation Passivation
An alkaline solution is used for degreasing. Rinsing in water is done after degreasing. After rinsing, the sheet metal is sent for de-rusting and finally it is sent transferred for passivation.
Washing
Tractor components are properly washed before assembling and painting. There is a separate washing system for small components as well as for large components like chassis. Chassis washing is done by auto spray at 55°C in washing zone area of chassis paint booth. After proper washing, components are transferred into drying section for drying. Small components are also washed in the washing machine installed at different locations before their assembling. In some components temporary seals are provided to prevent water penetration in critical places and crevices, which might not be removed while drying. These seals also prevent paint from penetrating inside.
Painting
Painting is done on chassis and sheet metal frames in different sections. Chassis painting take place in following four stages. Baking is carried out at
120°C after painting. 1. 2. 3. 4. Primer coating Finish Painting Flash off Oven Drying
Journals and Trade magazines:
The important journals and magazines that are related to the organization are A.) Metal Working World B.) C.) D.) Motion Gear Exchange Industrial Automation
INDUSTRY PROFILE
SWARAJ ENTERPRISES
SWARAJ Enterprises, the farm equipment SWARAJ Tractors, builds and sources tractors that are sold worldwide across six continents. SWARAJ is also among the top three tractor manufacturers in the world. Swaraj has a huge consumer base in India, China and America and a growing base in Australasia. The company builds more tractors in India than any other manufacturer, and has the capacity to build 150,000 tractors a year. In. Armed with engineering, tooling and manufacturing know-how gained from this relationship, Swaraj enterprises developed its first tractor, the B-275.The compact tractors and utility tractors are some of the toughest, most durable on the planet. Swaraj Tractors with sales of nearly 85,000 units annually is one of the largest tractor companies in the world, and is number one in sales in India - the largest tractor market in the world. To expand into the growing tractor market in China. To raise awareness about Swaraj in the US, Swaraj in USA announced its new sponsorship in the NASCAR Nationwide Series with R3 Motorsports, which is participating with a #23 Swaraj Tractors.
Swaraj Tractors have a global presence and its products are exported to several countries. Its global subsidiaries include Swaraj Europe Srl. based in Italy Swaraj USA Inc., Swaraj South Africa and Swaraj (China) Tractor Co. Ltd. A Swaraj enterprise is one of the leading tractor brands in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of over 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. Swaraj Tractors (China) Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations. Swaraj tractor has a 100% subsidiary, which assembles products for the American market.. The US based Reputation Institute recently ranked Swaraj among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list. Mahindra & Mahindra has controlling stakes in Reva electric and has submitted letter of Intent for South Korea's Ssangyong.
Awards
Bombay Chamber Good Corporate Citizen Award for 2006-07 Business world FICCI-SEDF Corporate Social Responsibility Award – 2007 Deming Prize Japan Quality Medal in 2007
Core Business Activities
1.) Automotive 2.) Farm Equipment 3.) System 4.) Financial Services 5.) Information Technology 6.) Infrastructure Development 7.) After-Market 8.) Swaraj Partners Division 9.) Specialty Services
Community Initiatives
As commercialization of agriculture grew in intensity in the mid to late 1800s the British Raj and the local legislatures and provinces began investing in agricultural development through support and establishment agricultural research farms and colleges and large scale irrigation schemes yet the level of mechanization was low at the time of independence in 1947. The socialist oriented five year plans of the 1950s and 60s aggressively promoted rural mechanization via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite this aggressiveness the first three decades after independence local production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was Nearly 140,000 units per year and by the late 1990s with production approaching 270,000 per year, India over-took the United States as the world's largest producer of four-wheel tractors with over 16 national and 4 multi-national corporations producing tractors today statistics estimate that of total agricultural area in India, less than 50% is under mechanized land preparation, indicating large opportunities still exist for agricultural mechanization.
1945 to 1960
War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid 1940's. In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.
1961 to 1970
Local production began in 1961 with five manufacturers producing a total of 880 units per year. By 1965 this had increased to over 5000 units per year and the total in use had risen to over 52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.
1971 to 1980
Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not
Survive. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total in use passing the half million mark by 1980.
1981 to 1990
A further five manufacturers began production during this period but only one of these survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.
1991 to 1997
Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two million mark.
India now emerged as one of the world leaders in wheeled tractor production.
1997 to 1999
Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well established in the motor industry, began tractor production in Pune. In April of the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors with matching equipment. The company is making a $US 75 million initial investment in a state of the art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen and Toubro have established a joint venture with John Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra and Greeves Ltd will produce same tractors under similar arrangements with Same Deutz-Fahr of Italy. Looking to South American export markets Mahindra and Mahindra are also developing a joint venture with Case for tractors in the 60-200 hp range. Total annual production was forecast to reach 300,000 during the following year.
1999 to Present
Facing market saturation in the traditional markets of the North West (Punjab, Haryana, and eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets. Sales remained in a slump, and added to the market saturation problems also came increased problems of "prestige" loan defaults, where farmers who were not financially able took tractors in moves to increase their families prestige. There is also reported increased misuse of these loans for buying either lifestyle goods, or for social functions. Government and private banks have both tightened their lending for this sector adding to the industry and farmers woes. By 2004 a slight up tick in sales once again due to stronger and national and to some extent international markets. But by 2006 sales once again were down to 216,000 and now in 2007-08 have slid further to just over 200,000.
Tractor Manufacturers Association
The Tractor Manufacturers' Association of India (TMA) is housed under The Confederation of Indian Industry (CII), New Delhi. Though not all
Manufacturers are members TMA is recognized as the main trade group representing the agricultural tractor industry in India. Mallika Srinivasan, Economic Times Businesswoman of the year 2006, and CEO of TAFE Limited, is currently serving as president.
Current Manufacturers of Tractors in India
Balwan Tractors, Force Motors Ltd
Formerly known as Bajaj Tempo Ltd. until 2005, Force Motors Ltd., makers of India's ubiquitous 3-wheeler Tempos since 1957 in a collaboration with Vidal & Sohn Tempo Werke, Germany. In 1999 began production of Ox and Ox 45 Brand Tractors both which incorporated transmission technology from the German manufacturer ZF. Additional line Balwan was introduced in 2004 and between the lines Force Motors offers a line of two-wheel and four-wheel tractors in a horsepower range from 10 - 50 HP.
Captain Tractors Pvt. Ltd
Founded in May 1994 and located in Rajkot, India, Captain Tractors manufactures mini-tractors under the Captain brand.
Crossword Agro Industries
Located in Rajkot, India, Crossword manufactures small tractors under the Nissan, Atmak and Captain brand names.
Eicher
In 1949, Eicher Good Earth was set up in India with technical collaboration with Gebr. Eicher a of Germany, imported and sold about 1500 tractors in India. In April 24, 1959 Eicher came out with the first locally assembled tractor from its Faridabad factory and in a period from 1965-1974 became the first fully manufactured (100% indigenization) tractor in India. In December, 1987 Eicher Tractors went public and in June, 2005 Eicher Motors Limited sold Eicher Tractors & Engines to a subsidiary of TAFE called TAFE Motors and Tractors Limited. Eicher also produced tractors under the Euro Power and Eicher Valtra brands under license from Valtra, an AGCO brand..
Escorts (Escort, Powertrac and Farmtrac)
Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Ford (Ford - New Holland) was sold in
1992. Ford Motor Company proper quit the tractors business, but the name was allowed to continue as per agreement until 2000, when Escorts relabeled its Ford models under the Escort brand. Escort manufactures produces tractors in the 27-75 HP range and has already sold over 6 lac tractors. Its tractors are marketed under three brand names, Escort, Powertrac and Farmtrac.
HMT Tractors
HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic. It manufactures its tractors in Pinjore, Mohali in a large factory that also manufactures machine-tools, and Hyderabad It has a capacity of 20,000 tractors per annum. In the Machine-tool company is a large foundry. It produces tractors in a range from 25 HP to 75 HP. For a short time, HMT exported tractors to the USA under the Zebra brand, which were marketed by Zetor distributors and dealers there. The company is controlled by the Ministry of Heavy industry that provides, on a monthly basis to the public its financial performance.
Indo Farm
Founded in Baddi, Himachal Pradesh, India in 1999, Indo Farms builds tractors in the 30-50hp ranges.
John Deere
In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under the John Deere name for worldwide sales. In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture. The new enterprise is known as John Deere Equipment Private Limited. The factory currently produces tractors in of 35, 40, 42, 47, 50, 55 and 70 HP capacities for domestic markets and for export to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune factory started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008. John Deere India Private Limited is a subsidiary of Deere & Company, USA in India. Its factory, located near Pune, manufactures 5000 Series
agricultural tractors. The Indian operations of Deere & Company include a technology center located at Magarpatta City Pune and John Deere Water Vadodara. The technology center provides services in the areas of Information technology, engineering, supply management, embedded systems and technical authoring for company’s operations world wide. John Deere Water, formed by the acquisitions of Plastro Irrigation Systems, TSystems International, and Roberts Irrigation Products, is one of the leading irrigation companies in the world today.
Mahindra Gujarat Tractor Limited
The company was originally incorporated in the state of Gujarat in 1963 with technical collaboration with Motokov-Praha of Czechoslovakia as Gujarat Tractor Corporate Ltd. It was taken over by Mahindra & Mahindra Limited on 17 December 1999 (holds 60% equity) and re-christened Mahindra Gujarat Tractor Ltd as part of Mahindra Tractors. The company is engaged in manufacturing of tractors in a range of 30-45hp which are marketed under Shaktimaan brand. They were previously marketed under the Mahindra Gujarat name, and before that the Hindustan name.
Mahindra & Mahindra
M&M's Farm Equipment Sector origins lie in a joint venture in 1963 between the Company, International Harvester Inc., and Voltas Limited, and was named International Tractor Company of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division. After M&M's organizational restructuring in 1994, this division was called the Farm Equipment Sector. The Farm Equipment Sector has also ventured into manufacturing of Industrial Engines. M&M Industrial engines are used for various applications like generator sets, industrial, construction, marine, compressors, etc. These engines are manufactured at the Company's engine assembly plants at Kandivli and Nagpur. M&M has two main tractor manufacturing plants located at Mumbai and Nagpur in Maharashtra. Apart from these two main manufacturing units, the Farm Equipment Sector has satellite plants located at Rudrapur in Uttaranchal and Jaipur in Rajasthan. The Farm Equipment Sector as reported by the Company has a dealer network of over 450 dealers. This dealer network is managed by 28 area offices, situated in all the major cities and covering all the principal states and M&M tractors has sold more than 13,00,000 tractors since its inception. M&M's Farm Equipment Sector is perhaps the largest exporter of Indian
Tractors to the USA and the west. And in a reversal to earlier trends of Indian tractor manufactures with joint ventures with western tractor companies, M&M, in 2004 announced that they had bought majority stake (80%) in Jiangling Tractor Company, and renamed it Mahindra Jiangling Motor Co Group (JMCG). This is the first instance of Indian tractor industries participating in India's reverse FDI. The plant in China reportedly has a production capacity of 12,000 tractors annually. In March 2007, M&M bought a controlling 43% stake in the Mohali-based tractor firm Punjab Tractors (Swaraj) that will reportedly increase M&M's share in the domestic farm equipment market from just over 30% to 40%. The 43% stake includes 29% owned by private equity firm Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its stake to 64.6%.
MARS Farm Equipments Ltd.
Originally established in 1976, the MARS Group is engaged in manufacturing/marketing of dump trucks, loaders, foggers, and agricultural tractors and attachments. Based in Lucknow, U.P., it began manufacturing two mini-tractor models under the Marshal name in 2005, Captain DI 2600 of 25 HP and Trishul MT DI 625 10 HP.
New Holland
New Holland Ag's entry into India was facilitated by FIAT's acquisition of Ford-New Holland in 1991. By 1998 New Holland Ag. (India) completed the construction of a new plant in Noida, near New Delhi, with a capacity of 5000 tractors in the 35 - 75 hp range. In 1999, New Holland Ag.'s parent company FIAT bought 70% of holdings of Case Corporation and created Case New Holland Global (CNH one of the top three tractor/agricultural/construction machinery manufacturers in the world), the new holding company New Holland Ag. (India). In 2000, the capacity of the Noida plant rose to 12,000 tractors per year and in 2007 the company manufactured 24,000 tractors for the domestic and export markets. New Holland India exports fully-built tractors to 51 countries in Africa, Australia, South-East Asia, West Asia, North America and Latin America. The India plant of New Holland was originally built in 1998 to cater only to India domestic market. However due to slow down of economy by year 20012002 and slump in domestic demand, it became a challenge to utilize the installed capacity of the factory. Hence the company started looking its market beyond India borders. It’s then CEO
Mario Gasparri guided the vision and handed over the task of overseas business to its dynamic manager Bhanu Sharma. The efforts paid off well. Bhanu Sharma in capacity of Head-International Business Operations took op the export volumes from the level of almost nil in 2003 to 8000 units in year 2007. The export business last year in 2007 contributed over 50% of the company business of total USD 250 millions. This also made New Holland the second largest tractor exporter from India after John Deer. In year 2007, India exported around 32,000 tractors of which 25% share was of New Holland.
Preet Tractors
Preet Agro began manufacturing tractors in 2002 in Punjab, India. They currently manufacture in the 35-70hp range.
Punjab Tractors Ltd (Swaraj Tractors)
In 1965, Government of India research institute Central Mechanical Engineering Research Institute, Durgapur, WB initiated design and development of Swaraj Tractor based on indigenous know-how. In 1970, Punjab Government acquired the Swaraj tractor's design and established
Punjab Tractors Limited (PTL). It was India's first large-scale totally indigenous project. The company exports Tractors to various countries including USA. It manufactures nine models of tractor and several models of combine harvesters. The manufacturing units are located at Mohali District, Asron Village of Nawanshahar District and Nabha of Patiala District, Punjab. Today Swaraj tractor is the second most selling brand of tractors in India after Mahindra. More than 800000 lacs tractor sold.
The popular models sold under SWARAJ brand are:
• 1.)SWARAJ 744, • 2.)SWARAJ 735, • 3.)SWARAJ 855, • 4.)SWARAJ 978, • 5.)SWARAJ 834, • 6.) SWARAJ 939, • 7.)SWARAJ 733, • 8.)SWARAJ 724, • 9.)SWARAJ 722
Swaraj also manufactures Forklifts and Combines, which are assembled in their Mohali Plant. Actis Capital, a private equity firm acquired 29% of Punjab Tractors in mid2003 from the Punjab Government. In March 2007, and currently subject to the receipt of requisite approvals, M&M bought a controlling 43% stake in Punjab Tractors Ltd. that will reportedly increase M&M's share in the domestic tractor market from just over 30% to nearly 40%. The 43% stake in Punjab Tractors includes the 29% owned by Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its share in Punjab to 64.6%.
Same Deutz-Fahr Ltd.
SAME Tractors is an USD 4 billion company for past 7 Decades of Rich Experience in Agriculture Segment. It was found by Francesco Cazzani along with his brother way back 1927. Greaves Ltd, joined in collaboration with SAME for manufacturing of tractors in 1996 under the SAMEGreaves brand. By 2000, Greaves sold its shares to SAME and formed 50:50 Joint Venture as SAME Greaves Tractors Ltd.
By 2002, Greaves Exited from SAME, SAME Greaves has become a wholly owned subsidiary of SAME, Italy. The company has been renamed as SAME DEUTZ Fahr Group India, Ranipet, Tamil Nadu, and India.
Sonalika (International Tractors Ltd.)
International Tractors Limited was incorporated on October 17, 1995 and began manufacturing tractors designed by Central Mechanical Engineering Research Institute (CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agricultural of France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a strong presence in India market producing its Crop Tiger range Combine Harvesters in a plant in Faridabad (near New Delhi) since 1992. CLASS has opened a new plant in Punjab at Morinda in 2006.
Standard
Standard Combine began building tractors in 2000 in Barnala, Punjab, India. In Standard Tractors, tractors are being manufactured in the range of 35, 45, 50, 60, and 75 HP with respective model names: Standard 335, Standard 345, Standard 450, Standard 460, and Standard 475. Engines for all these tractor models, except the last one, are manufactured within the plant as ‘Standard Engines’, in specific names – SE 335, SE 345, SE 450 and SE 460, respectively. All the above-mentioned models of Standard Engines have shown compliance to the TREM-III emission norms, as have been verified by the ARAI. However, two new variants of tractor of 35 hp (Standard 335-I) and 45 hp (Standard 345-I), equipped with famous Perkins engines (assembled within the Standard Tractors plant), and two completely new models of tractor of 30 hp (Standard 330) and 40 hp (Standard 340) are on the verge to be launched. Besides these, three 3-wheelers (two passengercarriers and one cargo), one 4-wheeler (cargo), a crane, an electric 3wheeled mini-car, and two 2-wheelers (scooters) are either in the process of development or on the verge of launch from the Standard Tractor Division.
TAFE
Tractors and Farm Equipment Limited (TAFE) was established in 1961 to manufacture and market Massey Ferguson tractors and related farm equipment in India. AGCO, the owner of Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India under both the TAFE and Massey Ferguson brands, and exported under both brands as well. In 2005, TAFE bought the Eicher Motors tractor and engine division
VST Tillers
VST Tillers was set up in 1965 in Bangalore, India. In collaboration with Mitsubishi Agricultural Machinery of Japan, they manufacture 18HP tractors under various brands, including Mitsubishi-Shakti', Shakti, EurotracVST and Euro-Trac. They have been exported to Asia, the Middle East, Europe and the USA. In odisa thet introduce in 1987 with help of m/s sahoo agrochemi Cuttack 753009
Previous Indian Tractor Companies
Tractor companies that did not survive and were not acquired by other companies are:
Asian Tractors Ltd
Began building tractors in 1989 from their own designs.
Ford Tractors
Ford (formerly Ford Tractor Division) began producing Ford Tractors in India in 1972 with a tie up with Escorts. In 1986 Ford acquired New Holland and tractor operations was transferred to Ford-New Holland and made into an independent corporation. In 1991, Fiat began an arranged purchase of Ford-New Holland that was completed in 1993, ending Ford Motor Company's long history of tractor production. The deal required that New Holland/FIAT stop using the Ford name. New Holland India Pvt began production of tractors in India in 1998.
Harsha Tractors
In 1975, Harsha Tractors Ltd began manufacturing tractors in conjunction with Motoimport of Russia. Tractor production never amounted to much, and has since ceased.
Haryana Tractors Ltd
As a part of Pratap Steel Rolling Mills Ltd., Haryana began building tractors from their own designs in 1983.
Kirloskar Tractors
Founded in cooperation with Deutz-Fahr of Germany in 1974. It has since ceased to manufacture tractors. However, the company continues to manufacture engines under license from Deutz.
Pittie Tractors
Pittie Tractors was set-up by a young and dynamic engineer - Shrikant Pittie and started out as Pittie Tools. The Pittie family is prominent industrialists in Pune and the family set-up the first private industry in Pune - The Raja Bahadur Motilal Poona Mills Ltd. in 1893. Pittie Tractors
indigenously developed and manufactured tractors and was well set to capture a large share of the market in India. However, due to an unfortunate labor strike at one of its critical vendors, followed by a similar strike at its own plant, the company lost nearly a year of production. As a result, the company fell into financial difficulty and ultimately had to wind-up operations.
doc_572338385.doc
Strategy is important because the resources available to achieve these goals are usually limited. Strategy is also about attaining and maintaining a position of advantage over adversaries through the successive exploitation of known or emergent possibilities rather than committing to any specific fixed plan designed at the outset.
COMPARATIVE STUDY OF EMPLOYEE RETENTION SATRATEGIES
TABLE OF CONTENTS Acknowledgement Declaration
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? Industry Profile ? Company Profile ? Origin ? Awards & models ? Manufacturing companies in India ? Competitors ? Introduction to project
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About the Organization: PTL
unjab Tractors Limited is an Indian Tractor manufacturing company that was established on June 27, 1970. It was India's first Large Scale Project, which was based on indigenous design and modern technology. It was a new venture towards making India more competent in the international scenario. PTL has four branches, all set up in northern India. PTL began its commercial operations in April 1974. In the 28 years till March 2003, it has sold more than 500,000 tractors. While the journey commenced in the north, PTL today has an all India presence. Its 377 strong dealer network sells and services a wide portfolio of 6 tractor models with more than 100 variants. Swaraj beginning was indeed humble, with the commercial introduction of Swaraj 724 model; tractor sales barely reached 600 in 1974-75. However, over the years, on the introduction of new tractor models, product performance and reliable service, Swaraj brand started receiving flavor with the farmers leading to an increase in both volume and market share. In 1999, two new models Swaraj 733 and Swaraj744 were added to Swaraj portfolio. By financial 1998-99, all these initiatives took Swaraj to the No. 2 slot in the industry, hitting a peak sale of 50,700 tractors in 1999-00 (market share 18.6%).
Punjab Tractors Limited consists of following divisions: 1. SWARAJ TRACTORS DIVISION, SAS Nagar, Capacity of 300000 tractors p.a. 2. SWARAJ FOUNDRY DIVISION, Majri, Capacity 8000 M.T. castings 3. SWARAJ COMBINE DIVISION, Chhapar Cheri, Capacity of 300000 tractors p.a. These plants set up at most economic outlays, also represent the most productive tractor facilities in the country, with concept and the technology in the new plant matching global standards. Today PTL stands as a multi product multi location unit manufacturing Tractors, Harvester Combines, Industrial Forklifts, and Agricultural Implements and Automotive castings. PTL is actively participating in the industrial scene of Punjab through its group companies SWARAJ MAZDA LIMITED, SWARAJ ENGINES LIMITED
AND SWARAJ AUTOMOTIVES LIMITED.
Products:
The major products of Punjab Tractors limited are divided into two categories i.e. for domestic consumption and overseas consumption. The domestic products include the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Swaraj 855 Swaraj 939 FE Swaraj 834 FE Swaraj 744 FE Swaraj 735 FE Swaraj 733 FE Swaraj 724 FE Swaraj 722 Forklift 15 Forklift 20
11. Forklift 30 12. Electric Forklift 15 13. Swaraj 8100-Harvester Combine
The products for overseas consumption include:
1. 2. 3. 4. Swaraj 978 FE, 4 Wheel drive Swaraj 978 FE, 2 Wheel drive Swaraj 855 FE, 4 Wheel drive Swaraj 939 FE, 4 Wheel drive
Hierarchy of the Organization:
1. Board of Directors (B.O.D) 2. Working Directors: Vice Chairman and Managing Director 3. Executive Directors: Finance, Human Resource and Development, Manufacturing, International Business Division, Material Services, Swaraj Automotive Limited, Swaraj Motors Limited, Senior VicePresident (Marketing) 4. Vice Presidents: 3-4 under each Executive Director in level 3 5. Assistant Vice President 6. General Manager 7. Chief Manager 8. Senior Manager 9. Manager 10. Assistant Manager
11. Senior Engineer 12. 13. 14. 15. Engineer Assistant Engineer Junior Engineer Operating Class
Employee Strength:
The total numbers of employees currently under the Mohali division of PTL are around 1600. These comprise of 500 in management staff and rest is working staff.
Financial Information: Annual Turnover for the financial year 2003-04 Net Profit = Rs. 641.44 crores
= Rs. 43.11 crores
%age turnover spent on Research and development = 1.28% Market Share Earning per share = 15 % = Rs. 7.10
1. Power Consumption: The total power consumption last year was
117.83 lakh units.
2.
Water consumption: No records were kept for water consumption as
the net amount spent on water resources was negligible. 3. Diesel Consumption: The average amount of diesel consumed per tractor last year was 619.11 Rupees. This includes consumption in both assembly and paint shop.
Technical Collaborations: 1.For Light commercial Vehicles:
P.T.L. entered into technical and financial collaboration with Mazda Motor Corporation of Japan in the year 1984 to set another company by the name of Swaraj Mazda Limited. It was Rs. 50 crore projects with an installed capacity to manufacture 5000 LCVs of up to 3.5 tones payload capacity.
2. For Forklifts
The company entered into technical collaboration with KOMATSU FORKLIFTS COMPANY of Japan in 1985 for the manufacture of high tech forklifts of both diesel and electric at its combine division.
3. For Diesel Engines
P.T.L.set up Swaraj Engines Ltd. (S.E.L.) in technical and financial collaboration with Kirloskar Oil Engines for the manufacture of diesel engines.
Competition within India:
The major competitors for PTL in India are Mahindra & Mahindra Tractors, Massey, Escorts, Eicher and HMT. The trends of market shares for the last 30 years are shown in the figure below. We can see that the market share of Swaraj tractors has increased from 9.1% in 1983 to 15% in 2003. Also the ranking has improved from 6th to 3rd. This is the sign of growing organization well on track to become the largest producers of tractors in India. On the international scene, Swaraj is now a recognized name in the developing world. Swaraj Tractors find an important place in countries like Ghana, Zambia, Kenya, Sudan, Indonesia, and Malaysia etc.
Pollutants and Pollution control measures:
1. Water Pollution: There are two kids of effluent waste that pollutes water
• Industrial effluent: Process water after use is discharged as effluent.
Industrial effluent is contaminated with pH imbalance, sulphates, chlorides, dissolved solids, suspended solids, oil and grease.
•
Domestic effluent: Domestic use consists of drinking and canteen
water consumption apart from toilets. Domestic effluent is discharged into public sewer directly.
2.) Air Pollution: Major contributors to air pollution are:
• • • • Shot-blasting section Painting booths Baking oven D.G. sets
Major air pollutants include SPM, NOx, SO2.
3. Land Pollution: The following solid wastes case land pollution:•
Paint waste scum, sludge from ETP Steel scrap
•
Pollution Control Measures:
1.) Plantation of trees. 2.) Expenditure of 5 lakh rupees per year for environmental management and pollution control activities. 3.) Effluent Treatment Plant for Industrial Effluent Treatment. 4.) Bag House Filter for the Shot Blasting Sections. 5.) Fume Extraction System for the pre-treatment process. 6.) Filter press for the extraction of water contents from the effluent sludge.
1. Production
• Light machine shop (LMS) • Heavy machine shop (HMS) • Assembly shop • Heat treatment shop • Paint shop
2. Product services
• Tool room
• Tool Design • Tool Control • Research & Development • Production planning & control (PPC) • Material Management & control (stores) • Quality Engineering • Maintenance • Industrial Engineering
3. Support Services
• Management systems • Finances. • Purchase The tool design cell, it is a part of Manufacturing Aids unit of Technology department. Designing of various Jigs and Fixtures, gauges, special tools, trolleys (material handling), shop equipment and dies etc. is done here. The design is based on design requests from Customer Department. After designing the drawings are sent to engineering tool room for fabrication..
Origin:
The increased need for aesthetics in any design led to a total redesigning of bonnet and side panel designs of tractors. Swaraj does not want to lag behind. It understands the need of modern day agriculture which is not only based on performance but also the aesthetics of the design.
Methodology:
The methodology of designing includes the following. The R & D department sends component drawings of the new part. They take care of all
the design and aesthetic parameters. It is the job of tool design cell to make the necessary component before the deadlines. So the following steps are involved:1.) Process Planning 2.) Design of required dies, tools, fixtures 3.) Fabrication
Trials
After above steps, the actual components are manufactured and sent to R & D who suggest possible modifications and also check the design. Once the design is cleared, the large scale manufacturing is done and new models are rolled out.
New Knowledge:
The following is the brief information about what is being done at PTL, Mohali.For the manufacture of tractors following procedures are performed Manufacturing and Machining of gears and shafts. (Light Machine Shop) Machining of Rear Cover, Gear Box Cover, Trumpet and Differential Cover (Heavy Machine Shop)
Assembly
1.) Differential Sub Assembly 2.) Gear Box Sub Assembly 3.) Engine Sub Assembly 4.) Rear Cover Assembly 5.) Main Line Assembly
Chassis Painting Line
1.) Chassis Washing 2.) Drying 3.) Primer Painting 4.) Flash Off 5.) Final Painting 6.) Baking
Tractor Dismounting
? ? ? ? Tires Sheet Metal Electrical components Final Accessories or assemblies
?
Roller Testing
Heat Treatment
The transmission components (manufactured at LMS) after undergoing machining operation are subjected to heat treatment. Heat treatment is carried out in sealed quench furnaces where gas carburising takes place at 920°C. Hot components are cooled in quenching oil. This treatment helps to enhance strength and hardness of the component and thus increases its lifetime. It is also known as case hardening.
Shot Blasting
After heat treatment the components are treated in the shot- blasting to remove the scaling of the components.
Pre-Treatment
Sheet metal is pretreated before painting. Pre-treatment takes place in the following stages: 1. 2. 3. 4. 5. Degreasing De-rusting Phosphating Surface-Activation Passivation
An alkaline solution is used for degreasing. Rinsing in water is done after degreasing. After rinsing, the sheet metal is sent for de-rusting and finally it is sent transferred for passivation.
Washing
Tractor components are properly washed before assembling and painting. There is a separate washing system for small components as well as for large components like chassis. Chassis washing is done by auto spray at 55°C in washing zone area of chassis paint booth. After proper washing, components are transferred into drying section for drying. Small components are also washed in the washing machine installed at different locations before their assembling. In some components temporary seals are provided to prevent water penetration in critical places and crevices, which might not be removed while drying. These seals also prevent paint from penetrating inside.
Painting
Painting is done on chassis and sheet metal frames in different sections. Chassis painting take place in following four stages. Baking is carried out at
120°C after painting. 1. 2. 3. 4. Primer coating Finish Painting Flash off Oven Drying
Journals and Trade magazines:
The important journals and magazines that are related to the organization are A.) Metal Working World B.) C.) D.) Motion Gear Exchange Industrial Automation
INDUSTRY PROFILE
SWARAJ ENTERPRISES
SWARAJ Enterprises, the farm equipment SWARAJ Tractors, builds and sources tractors that are sold worldwide across six continents. SWARAJ is also among the top three tractor manufacturers in the world. Swaraj has a huge consumer base in India, China and America and a growing base in Australasia. The company builds more tractors in India than any other manufacturer, and has the capacity to build 150,000 tractors a year. In. Armed with engineering, tooling and manufacturing know-how gained from this relationship, Swaraj enterprises developed its first tractor, the B-275.The compact tractors and utility tractors are some of the toughest, most durable on the planet. Swaraj Tractors with sales of nearly 85,000 units annually is one of the largest tractor companies in the world, and is number one in sales in India - the largest tractor market in the world. To expand into the growing tractor market in China. To raise awareness about Swaraj in the US, Swaraj in USA announced its new sponsorship in the NASCAR Nationwide Series with R3 Motorsports, which is participating with a #23 Swaraj Tractors.
Swaraj Tractors have a global presence and its products are exported to several countries. Its global subsidiaries include Swaraj Europe Srl. based in Italy Swaraj USA Inc., Swaraj South Africa and Swaraj (China) Tractor Co. Ltd. A Swaraj enterprise is one of the leading tractor brands in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of over 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. Swaraj Tractors (China) Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations. Swaraj tractor has a 100% subsidiary, which assembles products for the American market.. The US based Reputation Institute recently ranked Swaraj among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list. Mahindra & Mahindra has controlling stakes in Reva electric and has submitted letter of Intent for South Korea's Ssangyong.
Awards
Bombay Chamber Good Corporate Citizen Award for 2006-07 Business world FICCI-SEDF Corporate Social Responsibility Award – 2007 Deming Prize Japan Quality Medal in 2007
Core Business Activities
1.) Automotive 2.) Farm Equipment 3.) System 4.) Financial Services 5.) Information Technology 6.) Infrastructure Development 7.) After-Market 8.) Swaraj Partners Division 9.) Specialty Services
Community Initiatives
As commercialization of agriculture grew in intensity in the mid to late 1800s the British Raj and the local legislatures and provinces began investing in agricultural development through support and establishment agricultural research farms and colleges and large scale irrigation schemes yet the level of mechanization was low at the time of independence in 1947. The socialist oriented five year plans of the 1950s and 60s aggressively promoted rural mechanization via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite this aggressiveness the first three decades after independence local production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was Nearly 140,000 units per year and by the late 1990s with production approaching 270,000 per year, India over-took the United States as the world's largest producer of four-wheel tractors with over 16 national and 4 multi-national corporations producing tractors today statistics estimate that of total agricultural area in India, less than 50% is under mechanized land preparation, indicating large opportunities still exist for agricultural mechanization.
1945 to 1960
War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid 1940's. In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.
1961 to 1970
Local production began in 1961 with five manufacturers producing a total of 880 units per year. By 1965 this had increased to over 5000 units per year and the total in use had risen to over 52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.
1971 to 1980
Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not
Survive. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total in use passing the half million mark by 1980.
1981 to 1990
A further five manufacturers began production during this period but only one of these survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.
1991 to 1997
Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two million mark.
India now emerged as one of the world leaders in wheeled tractor production.
1997 to 1999
Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well established in the motor industry, began tractor production in Pune. In April of the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors with matching equipment. The company is making a $US 75 million initial investment in a state of the art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen and Toubro have established a joint venture with John Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra and Greeves Ltd will produce same tractors under similar arrangements with Same Deutz-Fahr of Italy. Looking to South American export markets Mahindra and Mahindra are also developing a joint venture with Case for tractors in the 60-200 hp range. Total annual production was forecast to reach 300,000 during the following year.
1999 to Present
Facing market saturation in the traditional markets of the North West (Punjab, Haryana, and eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets. Sales remained in a slump, and added to the market saturation problems also came increased problems of "prestige" loan defaults, where farmers who were not financially able took tractors in moves to increase their families prestige. There is also reported increased misuse of these loans for buying either lifestyle goods, or for social functions. Government and private banks have both tightened their lending for this sector adding to the industry and farmers woes. By 2004 a slight up tick in sales once again due to stronger and national and to some extent international markets. But by 2006 sales once again were down to 216,000 and now in 2007-08 have slid further to just over 200,000.
Tractor Manufacturers Association
The Tractor Manufacturers' Association of India (TMA) is housed under The Confederation of Indian Industry (CII), New Delhi. Though not all
Manufacturers are members TMA is recognized as the main trade group representing the agricultural tractor industry in India. Mallika Srinivasan, Economic Times Businesswoman of the year 2006, and CEO of TAFE Limited, is currently serving as president.
Current Manufacturers of Tractors in India
Balwan Tractors, Force Motors Ltd
Formerly known as Bajaj Tempo Ltd. until 2005, Force Motors Ltd., makers of India's ubiquitous 3-wheeler Tempos since 1957 in a collaboration with Vidal & Sohn Tempo Werke, Germany. In 1999 began production of Ox and Ox 45 Brand Tractors both which incorporated transmission technology from the German manufacturer ZF. Additional line Balwan was introduced in 2004 and between the lines Force Motors offers a line of two-wheel and four-wheel tractors in a horsepower range from 10 - 50 HP.
Captain Tractors Pvt. Ltd
Founded in May 1994 and located in Rajkot, India, Captain Tractors manufactures mini-tractors under the Captain brand.
Crossword Agro Industries
Located in Rajkot, India, Crossword manufactures small tractors under the Nissan, Atmak and Captain brand names.
Eicher
In 1949, Eicher Good Earth was set up in India with technical collaboration with Gebr. Eicher a of Germany, imported and sold about 1500 tractors in India. In April 24, 1959 Eicher came out with the first locally assembled tractor from its Faridabad factory and in a period from 1965-1974 became the first fully manufactured (100% indigenization) tractor in India. In December, 1987 Eicher Tractors went public and in June, 2005 Eicher Motors Limited sold Eicher Tractors & Engines to a subsidiary of TAFE called TAFE Motors and Tractors Limited. Eicher also produced tractors under the Euro Power and Eicher Valtra brands under license from Valtra, an AGCO brand..
Escorts (Escort, Powertrac and Farmtrac)
Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Ford (Ford - New Holland) was sold in
1992. Ford Motor Company proper quit the tractors business, but the name was allowed to continue as per agreement until 2000, when Escorts relabeled its Ford models under the Escort brand. Escort manufactures produces tractors in the 27-75 HP range and has already sold over 6 lac tractors. Its tractors are marketed under three brand names, Escort, Powertrac and Farmtrac.
HMT Tractors
HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic. It manufactures its tractors in Pinjore, Mohali in a large factory that also manufactures machine-tools, and Hyderabad It has a capacity of 20,000 tractors per annum. In the Machine-tool company is a large foundry. It produces tractors in a range from 25 HP to 75 HP. For a short time, HMT exported tractors to the USA under the Zebra brand, which were marketed by Zetor distributors and dealers there. The company is controlled by the Ministry of Heavy industry that provides, on a monthly basis to the public its financial performance.
Indo Farm
Founded in Baddi, Himachal Pradesh, India in 1999, Indo Farms builds tractors in the 30-50hp ranges.
John Deere
In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under the John Deere name for worldwide sales. In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture. The new enterprise is known as John Deere Equipment Private Limited. The factory currently produces tractors in of 35, 40, 42, 47, 50, 55 and 70 HP capacities for domestic markets and for export to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune factory started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008. John Deere India Private Limited is a subsidiary of Deere & Company, USA in India. Its factory, located near Pune, manufactures 5000 Series
agricultural tractors. The Indian operations of Deere & Company include a technology center located at Magarpatta City Pune and John Deere Water Vadodara. The technology center provides services in the areas of Information technology, engineering, supply management, embedded systems and technical authoring for company’s operations world wide. John Deere Water, formed by the acquisitions of Plastro Irrigation Systems, TSystems International, and Roberts Irrigation Products, is one of the leading irrigation companies in the world today.
Mahindra Gujarat Tractor Limited
The company was originally incorporated in the state of Gujarat in 1963 with technical collaboration with Motokov-Praha of Czechoslovakia as Gujarat Tractor Corporate Ltd. It was taken over by Mahindra & Mahindra Limited on 17 December 1999 (holds 60% equity) and re-christened Mahindra Gujarat Tractor Ltd as part of Mahindra Tractors. The company is engaged in manufacturing of tractors in a range of 30-45hp which are marketed under Shaktimaan brand. They were previously marketed under the Mahindra Gujarat name, and before that the Hindustan name.
Mahindra & Mahindra
M&M's Farm Equipment Sector origins lie in a joint venture in 1963 between the Company, International Harvester Inc., and Voltas Limited, and was named International Tractor Company of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division. After M&M's organizational restructuring in 1994, this division was called the Farm Equipment Sector. The Farm Equipment Sector has also ventured into manufacturing of Industrial Engines. M&M Industrial engines are used for various applications like generator sets, industrial, construction, marine, compressors, etc. These engines are manufactured at the Company's engine assembly plants at Kandivli and Nagpur. M&M has two main tractor manufacturing plants located at Mumbai and Nagpur in Maharashtra. Apart from these two main manufacturing units, the Farm Equipment Sector has satellite plants located at Rudrapur in Uttaranchal and Jaipur in Rajasthan. The Farm Equipment Sector as reported by the Company has a dealer network of over 450 dealers. This dealer network is managed by 28 area offices, situated in all the major cities and covering all the principal states and M&M tractors has sold more than 13,00,000 tractors since its inception. M&M's Farm Equipment Sector is perhaps the largest exporter of Indian
Tractors to the USA and the west. And in a reversal to earlier trends of Indian tractor manufactures with joint ventures with western tractor companies, M&M, in 2004 announced that they had bought majority stake (80%) in Jiangling Tractor Company, and renamed it Mahindra Jiangling Motor Co Group (JMCG). This is the first instance of Indian tractor industries participating in India's reverse FDI. The plant in China reportedly has a production capacity of 12,000 tractors annually. In March 2007, M&M bought a controlling 43% stake in the Mohali-based tractor firm Punjab Tractors (Swaraj) that will reportedly increase M&M's share in the domestic farm equipment market from just over 30% to 40%. The 43% stake includes 29% owned by private equity firm Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its stake to 64.6%.
MARS Farm Equipments Ltd.
Originally established in 1976, the MARS Group is engaged in manufacturing/marketing of dump trucks, loaders, foggers, and agricultural tractors and attachments. Based in Lucknow, U.P., it began manufacturing two mini-tractor models under the Marshal name in 2005, Captain DI 2600 of 25 HP and Trishul MT DI 625 10 HP.
New Holland
New Holland Ag's entry into India was facilitated by FIAT's acquisition of Ford-New Holland in 1991. By 1998 New Holland Ag. (India) completed the construction of a new plant in Noida, near New Delhi, with a capacity of 5000 tractors in the 35 - 75 hp range. In 1999, New Holland Ag.'s parent company FIAT bought 70% of holdings of Case Corporation and created Case New Holland Global (CNH one of the top three tractor/agricultural/construction machinery manufacturers in the world), the new holding company New Holland Ag. (India). In 2000, the capacity of the Noida plant rose to 12,000 tractors per year and in 2007 the company manufactured 24,000 tractors for the domestic and export markets. New Holland India exports fully-built tractors to 51 countries in Africa, Australia, South-East Asia, West Asia, North America and Latin America. The India plant of New Holland was originally built in 1998 to cater only to India domestic market. However due to slow down of economy by year 20012002 and slump in domestic demand, it became a challenge to utilize the installed capacity of the factory. Hence the company started looking its market beyond India borders. It’s then CEO
Mario Gasparri guided the vision and handed over the task of overseas business to its dynamic manager Bhanu Sharma. The efforts paid off well. Bhanu Sharma in capacity of Head-International Business Operations took op the export volumes from the level of almost nil in 2003 to 8000 units in year 2007. The export business last year in 2007 contributed over 50% of the company business of total USD 250 millions. This also made New Holland the second largest tractor exporter from India after John Deer. In year 2007, India exported around 32,000 tractors of which 25% share was of New Holland.
Preet Tractors
Preet Agro began manufacturing tractors in 2002 in Punjab, India. They currently manufacture in the 35-70hp range.
Punjab Tractors Ltd (Swaraj Tractors)
In 1965, Government of India research institute Central Mechanical Engineering Research Institute, Durgapur, WB initiated design and development of Swaraj Tractor based on indigenous know-how. In 1970, Punjab Government acquired the Swaraj tractor's design and established
Punjab Tractors Limited (PTL). It was India's first large-scale totally indigenous project. The company exports Tractors to various countries including USA. It manufactures nine models of tractor and several models of combine harvesters. The manufacturing units are located at Mohali District, Asron Village of Nawanshahar District and Nabha of Patiala District, Punjab. Today Swaraj tractor is the second most selling brand of tractors in India after Mahindra. More than 800000 lacs tractor sold.
The popular models sold under SWARAJ brand are:
• 1.)SWARAJ 744, • 2.)SWARAJ 735, • 3.)SWARAJ 855, • 4.)SWARAJ 978, • 5.)SWARAJ 834, • 6.) SWARAJ 939, • 7.)SWARAJ 733, • 8.)SWARAJ 724, • 9.)SWARAJ 722
Swaraj also manufactures Forklifts and Combines, which are assembled in their Mohali Plant. Actis Capital, a private equity firm acquired 29% of Punjab Tractors in mid2003 from the Punjab Government. In March 2007, and currently subject to the receipt of requisite approvals, M&M bought a controlling 43% stake in Punjab Tractors Ltd. that will reportedly increase M&M's share in the domestic tractor market from just over 30% to nearly 40%. The 43% stake in Punjab Tractors includes the 29% owned by Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its share in Punjab to 64.6%.
Same Deutz-Fahr Ltd.
SAME Tractors is an USD 4 billion company for past 7 Decades of Rich Experience in Agriculture Segment. It was found by Francesco Cazzani along with his brother way back 1927. Greaves Ltd, joined in collaboration with SAME for manufacturing of tractors in 1996 under the SAMEGreaves brand. By 2000, Greaves sold its shares to SAME and formed 50:50 Joint Venture as SAME Greaves Tractors Ltd.
By 2002, Greaves Exited from SAME, SAME Greaves has become a wholly owned subsidiary of SAME, Italy. The company has been renamed as SAME DEUTZ Fahr Group India, Ranipet, Tamil Nadu, and India.
Sonalika (International Tractors Ltd.)
International Tractors Limited was incorporated on October 17, 1995 and began manufacturing tractors designed by Central Mechanical Engineering Research Institute (CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agricultural of France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a strong presence in India market producing its Crop Tiger range Combine Harvesters in a plant in Faridabad (near New Delhi) since 1992. CLASS has opened a new plant in Punjab at Morinda in 2006.
Standard
Standard Combine began building tractors in 2000 in Barnala, Punjab, India. In Standard Tractors, tractors are being manufactured in the range of 35, 45, 50, 60, and 75 HP with respective model names: Standard 335, Standard 345, Standard 450, Standard 460, and Standard 475. Engines for all these tractor models, except the last one, are manufactured within the plant as ‘Standard Engines’, in specific names – SE 335, SE 345, SE 450 and SE 460, respectively. All the above-mentioned models of Standard Engines have shown compliance to the TREM-III emission norms, as have been verified by the ARAI. However, two new variants of tractor of 35 hp (Standard 335-I) and 45 hp (Standard 345-I), equipped with famous Perkins engines (assembled within the Standard Tractors plant), and two completely new models of tractor of 30 hp (Standard 330) and 40 hp (Standard 340) are on the verge to be launched. Besides these, three 3-wheelers (two passengercarriers and one cargo), one 4-wheeler (cargo), a crane, an electric 3wheeled mini-car, and two 2-wheelers (scooters) are either in the process of development or on the verge of launch from the Standard Tractor Division.
TAFE
Tractors and Farm Equipment Limited (TAFE) was established in 1961 to manufacture and market Massey Ferguson tractors and related farm equipment in India. AGCO, the owner of Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India under both the TAFE and Massey Ferguson brands, and exported under both brands as well. In 2005, TAFE bought the Eicher Motors tractor and engine division
VST Tillers
VST Tillers was set up in 1965 in Bangalore, India. In collaboration with Mitsubishi Agricultural Machinery of Japan, they manufacture 18HP tractors under various brands, including Mitsubishi-Shakti', Shakti, EurotracVST and Euro-Trac. They have been exported to Asia, the Middle East, Europe and the USA. In odisa thet introduce in 1987 with help of m/s sahoo agrochemi Cuttack 753009
Previous Indian Tractor Companies
Tractor companies that did not survive and were not acquired by other companies are:
Asian Tractors Ltd
Began building tractors in 1989 from their own designs.
Ford Tractors
Ford (formerly Ford Tractor Division) began producing Ford Tractors in India in 1972 with a tie up with Escorts. In 1986 Ford acquired New Holland and tractor operations was transferred to Ford-New Holland and made into an independent corporation. In 1991, Fiat began an arranged purchase of Ford-New Holland that was completed in 1993, ending Ford Motor Company's long history of tractor production. The deal required that New Holland/FIAT stop using the Ford name. New Holland India Pvt began production of tractors in India in 1998.
Harsha Tractors
In 1975, Harsha Tractors Ltd began manufacturing tractors in conjunction with Motoimport of Russia. Tractor production never amounted to much, and has since ceased.
Haryana Tractors Ltd
As a part of Pratap Steel Rolling Mills Ltd., Haryana began building tractors from their own designs in 1983.
Kirloskar Tractors
Founded in cooperation with Deutz-Fahr of Germany in 1974. It has since ceased to manufacture tractors. However, the company continues to manufacture engines under license from Deutz.
Pittie Tractors
Pittie Tractors was set-up by a young and dynamic engineer - Shrikant Pittie and started out as Pittie Tools. The Pittie family is prominent industrialists in Pune and the family set-up the first private industry in Pune - The Raja Bahadur Motilal Poona Mills Ltd. in 1893. Pittie Tractors
indigenously developed and manufactured tractors and was well set to capture a large share of the market in India. However, due to an unfortunate labor strike at one of its critical vendors, followed by a similar strike at its own plant, the company lost nearly a year of production. As a result, the company fell into financial difficulty and ultimately had to wind-up operations.
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