FINAL PROJECT REPORT

ON
COMPARATIVE STUDY OF EMPLOYEE
RETENTION SATRATEGIES
(PTL V/S SWARAJ ENTERPRISES)

IN PARTIAL FULFILLMENT OF REQUIREMENT OF THE DEGREE

OF MASTER IN BUSINESS ADMNISTRATION.

UNDER THE GUIDENCE OF: - SUBMITTED BY:-

. Mr. Nishant Garg SUKHANJEET KAUR
(D.B.I.M.C.S.) REGD. NO.DBIM (MG) 2009-34
ROLL NO.

SESSION 2009-11
DESH BHAGAT INSTITUTE OF MGT. & COM. SCI.
MANDI GOBINDGARH
 TABLE OF CONTENTS

 Acknowledgement
 Declaration
 Industry Profile
 Company Profile
 Origin
 Awards & models
 Manufacturing companies in India
 Competitors
 Introduction to project

 ACKNOWLEDGEMENT

Talent & capabilities are of course necessary but opportunities & right
guidance are two very important back up without which no any person can
climb the ladder to success.
.
It is a great pleasure to express my hearty & sincere gratitude to my
project guide Mr. NISHANT GARG (D.B.I.M.C.S.) under whose inspiring
guidance the present piece of report could get its present shape.

I am grateful to my project guide who guided me during the course of

my project and who helped me at every step and showed me the right way to
get out of all the obstacles I faced during the project.

Place:-Mandi Gobindgarh
Sukhanjeet kaur.
 DECLARATION

I hereby declare that this project report is the bonafide record of research
work done by me.
I also declare that the fact and data which have used in the report are
true to the best of my knowledge and belief. This report has not been
previously submitted for any other purpose with a similar title.
About the Organization:

PTL:-

Punjab 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. Swaraj 855

2. Swaraj 939 FE

3. Swaraj 834 FE

4. Swaraj 744 FE

5. Swaraj 735 FE

6. Swaraj 733 FE

7. Swaraj 724 FE

8. Swaraj 722

9. Forklift 15
10. Forklift 20

11. Forklift 30

12. Electric Forklift 15

13. Swaraj 8100-Harvester Combine

The products for overseas consumption include:

1. Swaraj 978 FE, 4 Wheel drive

2. Swaraj 978 FE, 2 Wheel drive

3. Swaraj 855 FE, 4 Wheel drive

4. 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 Vice-
President (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. Engineer

13. Assistant Engineer

14. Junior Engineer

15. 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 = Rs. 641.44 crores

Net Profit = Rs. 43.11 crores

%age turnover spent on Research and development = 1.28%

Market Share = 15 %

Earning per share = 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. Degreasing
2. De-rusting
3. Phosphating
4. Surface-Activation
5. 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. Primer coating
2. Finish Painting
3. Flash off
4. Oven Drying

Journals and Trade magazines:

The important journals and magazines that are related to the organization are
A.) Metal Working World
B.) Motion
C.) Gear Exchange
D.) 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, T-
Systems 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 2001-
2002 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 mid-
2003 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 SAME-
Greaves 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 passenger-
carriers and one cargo), one 4-wheeler (cargo), a crane, an electric 3-
wheeled 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, Eurotrac-
VST 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.