Al-Ghazi Tractors Limited

Research Project
AL-GHAZI TRACTOR LIMITED SUBMITTED TO Mr. Riaz Hussain Submitted By M. Nauman Khan (05) Tahir Shafiq (31) M. Baqir (45) M. Imran Sajid (33) Ali Ahmad (22) Shahid Rasoul (19)

Institute of management sciences B.Z.UNIVERSITY MULTAN SUB CAMPUS D.G.Khan


Al-Ghazi Tractors Limited

We want to dedicate our report to all the people who helped and pray for us. People who bring lots of colors and happiness in our lives, including first of all our parents specially, their prayers are always with us. Then our honorable teachers, they guide us in every difficult time especially in studies; their guidance will be with us in every field of our lives. We were unable to prepare this report without their guidance. Then our friends their caring, thoughts and smiles will always be with us through out our lives and we will miss their company in future. So, we are going to dedicate this report all the above people who are colors of our lives. We think without them our lives will be colorless.


Al-Ghazi Tractors Limited

Practical work is the essence of executives. By keeping this in view our course instructor gave us the repot of “Al-Ghazi Tractor Limited.” We are very much thankful to our teacher Mr.Riaz Hussain for providing us a chance to Know that whether theoretical concepts are applicable in practical life or not. It was a great experience for us. We are also very thankful to the persons who helped us in making this report.


Al-Ghazi Tractors Limited

Report of Financial Mamagment about Al-Ghazi Tractor Limited is a big tool to teach the students about the company that how it is changing with the passage of time. We were assigned “Al-Ghazi Tractor Limited?” that was a wonderful experience. We tried our best to produce the most comprehensive report on the given topic. This effort can be evaluated by the readers and constructive critics will help us in true prospective.


Al-Ghazi Tractors Limited

Serial # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

name Executive Summary Vision & Mission Introduction Hirarcy Chart Departments Marketing Deptt. Personnel & Adnim Deptt. Personnel Deptt. Store Deptt. Quality Assurance Deptt. Production Deptt Finance Deptt. Competitors Ratio Analysis SWOT Analysis Findings Successes Suggestions & Conclusions References

Page # 6 7 8 10 11 12 13 14 18 20 21 25 29 30 35 37 38 39 40


Al-Ghazi Tractors Limited

Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.The area of factory, at D.G.Khan, is 100 acres approximately. It uses the product design of “FIAT” of Italy. The main purpose of the company is assembling and distributing of Fiat Tractors. They assemble two models of tractors i.e. 480-S and 640. The depletion rate of 480 is 85% and 640 are 76%.


Al-Ghazi Tractors Limited Forecasting entirely depends upon the marketing department. Previously 98% of sales was made by contract with ADBP but now it is carried out on net cash payment basis. Because delivery through ADBP has been stopped. Highway method is used for transportation purpose. To reduce inventory level they adopt safety stock method. They have different lead-time for different suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing inventory. Al-Ghazi Tractors Limited has a separate quality control department. The laboratory is well equipped to under take chemical and mechanical testing of metals. AlGhazi Tractors Limited has received the ISO 9002 Certificate.


Al-Ghazi Tractors Limited

To make AGTL a symbol of success

With AGTL’s name being synonymous with stability, profitability, Brand strength and customer loyalty, AGTL’s mission is to retain market leadership as the lowest cot producer of the highest quality products – the most enduring competitive edge being the quality of our tractors.

Al-Ghazi Tractors Limited was incorporated in 1983, as a culmination of the then government’s desire to bring in the private sector to join hands with the public sector – as public-private enterprise - under a seven year management contract to the private


Al-Ghazi Tractors Limited shareholders. At the end of seven years, the government once again took over the management control of AGTL in 1990 In 1991 the project was offered for privatization, and acquired by Al-Futtaim Group of Dubai who took over the management control of AGTL in December 1991.Ever since AGTL is a case study of rollicking corporate success. 50.02% shares of the company are held by AlFuttaim Industries Co. LLC and 43.17% shares are held by CNH Global NV, with whom AlGhazi Tractors Limited has signed an Industrial Collaboration Agreement for manufacture of New Holland brand tractors. The Agreement is valid till April 2016. With Corporate Head Office in Karachi, the AGTL plant is located in Dera Ghazi Khan – 100 kms from Multan and some 800 kms from Karachi. Built to specifications and standards of Fiat / New Holland – the world’s No. 1 tractor manufacturer – the plant is a hallmark of engineering dynamics. With expansions carried out in 2005, the plant is now capable of producing 30,000+ tractors per year in a single shift – the most enduring competitive edge being the quality of our tractors, which are robust and sturdy and carry a local content as high as 83%. The AGTL plant and the staff town in what is essentially a less-developed-area of the country, has given fillip to the whole area by way of ancillary and allied activities. We take justifiable pride in the contribution that the company has made in the social cause of uplifting and transforming a whole society in the remoteness of Dera Ghazi Khan.

AGTL was the first automobile company in Pakistan to earn the ISO-9002 Certificate. ISO-9001: 2000 Registration is now valid until January 2007.

AGTL had commissioned Baan, a global provider of enterprise business solutions worldwide to implement ERP and thus bring the entire business cycle viz. sales and marketing, planning and purchases, stores and inventory, manufacturing, quality, maintenance, and finance executed as enterprise-wide integrated business system. The project


Al-Ghazi Tractors Limited went live on January 1, 2002. The company is now acquiring and moving in 2006 to the new version – Baan VI. With no short cuts to distinction, AGTL operates with a disciplined focus on all management activities – the most important asset being its human capital: the customers, the employees and the investors – AGTL believes that this human capital does not depreciate with time. The management works to ensure that all supply chain associates, dealers, shareholders, employees share in the Company’s growth and prosperity. Austerity and primacy of efficiency being settled wisdom at Al-Ghazi, AGTL’s core strategy has been to be the lowest cost producer of the highest quality products. AGTL is the only automobile company in Pakistan which has not raised its selling prices ever since these were reduced and agreed with the Government in August, 1998.


Al-Ghazi Tractors Limited

Hirarchy Chart












Al-Ghazi Tractors Limited

1. Marketing Department 2. Personnel and Admin department 3. Store Department 4. Quality Assurance 5. Production Department 6. Finance Department

Marketing department include the following tasks


Al-Ghazi Tractors Limited  Maintenance of the staff  Staff training  Workshop arrangement  Showroom arrangement  Sale promotion  Dealer development (motivating them)  Research and development  Forecasting the new trends in the market  Aware of all the competitors’ activities DISTRIBUTION FUNCTION  The distribution function is the part of the marketing department and its activities are as follows.  Booking of tractors  Delivery of tractors  Handling of payments  Preparation of reports for MIS  Close co-ordination with production and material management department


Al-Ghazi Tractors Limited

The P&A department deal with employees. All the activities related to employees of factory are handled by this department. P&A department maintains the workers day-to-day activities, their monthly and yearly records.


Al-Ghazi Tractors Limited

The function of Personnel department of the factory are;  Maintenance  Have all the records of Employees  Act as an agent on behalf of the company to handle all the cases of coat.  Transport  Security  Horticulture  Cleaning  Colony affairs  AGTL School  Official visit adjustment  Have direct link with the Finance department  All the payment verifications are done here  Purchases  Maintenance of company’s policies The Personnel department handles all the matters related to employees. Such as: • • • • Attendance records Leave Fair System Wage System, etc. Medical Claim

Wage System

Al-Ghazi Tractors Limited 1 2 3 Daily wage basis Daily wage basis employees are given salaries on daily basis. The personnel department maintained their record and then passes it to the Finance department where the employees are given wages. The daily rate per hour per employee is Rs.155. The overtime wage is also included by calculating the overtime hrs an pay the employee at a specific overtime rate per hour, which is different for different employees. Contract basis • Contract basis employees are given wages on monthly basis. These employees are given a specific card for their attendance. And at the end of month in the basis of their attendance records, they are paid for their wages. Permanent basis Permanent basis employees are also given wages on monthly basis. Leave System: The personnel department also handles the leave system. Basically three types of leaves are given: 0 1 2 Earned Leave Sick Leave Casual Leave The leave system for Executive and for Non-Executive (staff workers) is different. Executives are allowed to have only earned leave but the workers are given all the three types of leaves. Earned Leave The worker preplans this type of leave. 30 days of Earned Leave are allowed for each worker in one year. The worker is paid for this type of leave. Daily wage basis Contract basis Permanent basis


Al-Ghazi Tractors Limited

Sick Leave In the case of any sickness 10 days of sick leave are allowed for each worker in one year. The worker is not paid for this type of leave. Casual Leave In the case of any emergency 10 days of causal leave are allowed for each worker in one year. The worker is not paid for this type of leave. The worker can also take even the half-day of this type of leave. Leave Adjustment Each worker has assigned a leave card for its record’s maintenance. The leave adjustment is done on yearly basis by the personnel department. Each month the total number Earned Leave, sick leave, and Casual Leave are calculated and record is maintained. And after each year if the allowed days of leave are remaining then they are adjusted in the next year’s leave Schedule for the related employee. If any dispute arises then the personnel department handles this matter. If an employee misbehaves, then the personnel department issued a charge sheet to him and takes the corresponding action against or in favors of him. The Personnel department handles all these work. The Admin department deals with the information related to: • • • • Workers Warning Charge sheet Transaction of post

Types of workers:  Daily basis


Al-Ghazi Tractors Limited  Contract basis  Permanent basis The manpower strength required for daily production is 603. The personnel department’s responsibility is to keep the man power strength standard one. For this purpose, the daily records are maintained, and also the daily attendance is taken. If for certain reason any worker is not available, the personnel department has to make adjustment to keep the standard level of man power strength for the production of tractors. The Admin department’s responsibilities are: • Transport Facility All the facilities related to transport are under this department. The things related to plant are transported from one place to another is called pool transport facility. • Purchased For long-term purpose, parts are purchases that are required to assemble the tractors so that to avoid the stop of production. Purchases are made on the credit basis to the suppliers. But the problem occurs here sometime because even the small amount is also made trough credits. • Security

All type of security related to, 0 Employees, and Goods are under the responsibility of admin department.


Medical Facility


Al-Ghazi Tractors Limited Social Security: its relate to the workers. Workers are secured through insurance. On 5000 wage, 7% insurance security is given to each employee, i.e., 350 rupees is given to each employee per month. 1 Officers Security: for executives this policy also exists. And they are also secured through the insurance. • Retirement There is employee old age system for employees and also for workers. 280 rupees is retained for each worker as per month for its pension plan. In which, the employee’s contribution is 40 rupees which is deducted from his salary and the remaining 240 rupees is given by the organization. • Labor Benefits

There are two acts related to the labor’s benefit: Participation Act of 1932: under this act, the workers ere given the facilities of medical treatment, pension facility, etc. 0 1934 Act: under this act, including the facilities of 1932 act, the marriage grant facility, scholarship, education, and many other facilities are avail by the workers from the organizations which are registered through this Act.


Al-Ghazi Tractors Limited

The department plays a vital role in the factory and is regarded as the backbone of the factory because it controls almost all the other departments of the factory. All the other departments cannot play its role without the help of the Store department. The main purpose of the store is to receive the components, maintain the record and issue the parts according to the need. Store department is divided into the following sub parts. Yard BAAN Local Un Boxing Store Department Casing Knock Down (C.K.D) Binning Salvage Cell Expense store This part of the store is responsible for receiving, binning the heavy components, and to make the tyre assembly. The store yard is categorized into three areas: 0 trucks. 1 2 Yard Item Location: The heavy components such as gear box, axle case casting parts Tyres Assembly: The front and the rear tyre are also stored here. are stored here. Components Receiving area: In this area the components are unloaded from the


Al-Ghazi Tractors Limited

The term “quality” refers to the excellent product or service that fulfills or exceeds our expectations. The expectations are based on the intended used and the selling price. Thus, a quality is somewhat is an intangible based on perception. Standard quality is the totality of features and characterizes tics of a product or service that bear on its ability to satisfy implied or stated needs. Stated needs are determined by the contract, whereas the implied needs are the function of the market and must be identified and defined. The needs involve:  Quality Control It is the use of techniques and activities to achieve, sustain, and improve the quality of a product or service.  Quality Assurance All the planned and systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirements for quality is called Quality Assurance.  Safety  Availability  Maintainability  Reliability  Usability  Economics (Price)  Environment


Al-Ghazi Tractors Limited

The process design in the assembly line of tractors consists of the following operations an activities.
        

Gear Box Transmission Coupling of transmission with Gear-Box Test Bench Coupling engine with transmission First line Paint shop Second line Final inspection




Al-Ghazi Tractors Limited COUPLING OF TRANSMISSION WITH GEAR-BOX Here gearbox and all other parts, which are prepared in transmission, are coupled and the following operations are performed. i) GEARBOX WITH TRANSMISSION TIGHTENING. ii) FINAL DRIVES TIGHTENING. iii) BREAK PEDAL ADJUSTMENT . TEST BENCH Here the engine is checked to check that all its parts are at their its correct places or not, further actions are taken later on. 1. 2. 3. 4. 5. 6. CLUTCH TO FLY WHEEL TIGHTENING ENGINE WITH TRANSMISSION MASTER CLUTCH PEDAL ADJUSTMENT HYDRALIC LIFT TRANSMISSION TIGHTENING LEVER TO STEERING BOX TIGHTENING FRONT AXLE SUPPORT TIGHTENING

i) WASHING Here to remove dust the body of engine , the body of the engine is washed with hot mixture of hot water and chemicals. ii) PRIMER Here the body is make prepared for paint by allowing to remained in the hot air. iii) PAINT Here the steel body is painted in the “Paint Shop”.


Al-Ghazi Tractors Limited


Here the front and back wheels are alighted and their bolts are tightened. vii) OIL CHECKING Here the oil levels are checked and fill oil to it and after it the final inspection is made.

The following are the operations, which are performed during final inspection of finished tractors. i) CHECKING OF OIL LEVEL:  Air cleaner oil checking
   

Water level checking Weight test of Hydraulic pressure Engine oil level checking Gear Box oil level checking Clutch play tightening and sound test High, low gear sound checking Final drive tube leak Differential case hole and sound checking Gear box top cover leak checking Differential leak checking Engine sound checking Lift pump support checking Automisophry support checking Paint cover checking

         


Al-Ghazi Tractors Limited

           

Head light high checking Beam indicators checking Oil pressure checking Alternate light checking Alternate junctions checking Fan belt (extension/loose) checking Fuel gauge checking Temperature gauge checking Main wire clip checking Parking lights checking Parking indicators checking Neutral switch checking Head light low checking Back lights checking Horn checking Yellow lamp checking

  


Al-Ghazi Tractors Limited

The Finance Department handles all the matters related to finance. It also maintains all the records related to it and also prepare a budget for each year. All the payment transactions, recording transactions, and the maintenance of records are under Finance department. The Finance Department of Al Ghazi Tractors Ltd. handles all the matters all the payment transactions, recording transactions, and the maintenance of records are under this department. The Finance Department has the direct link with the Admin Department. All type of bills and slips came in this department from the Admin department. And if there is any mistake then the Finance Department inform the Admin Department about this to make it correct. The Finance department has the following sections categorized as: • • • • Accountant Collection Account Cash Account Payroll and Tax System

For the maintenance of records or for the payment and receipt purpose, different vouchers are used. For Payment purpose: • • • • Cash Payment Voucher Account Payable Voucher Bank Payment Voucher Journal Voucher


Al-Ghazi Tractors Limited
For Receipt purpose: • • Cash Receipt Voucher Bank Receipt Voucher

Cash Payment Voucher The CPV is usually made for the internal users. The Finance Department through CPV makes the payment up to of Rs.5000. If the purchases are above that specific amount, then Finance Department has to taken approval from the Head Office. The cash payment is also made by the Finance Department. The CPV is made for different payments such as: • • • • • Officer Mess Expense Cleaning Charges Staff Welfare, and many more. Travelling Expenses Medical Allowances

On each CPV it is necessary to stamp a “Revenue Stamp”. This stamp is given by the government to generate its revenue. • • • For Rs.2,000 or below it, Rs.1 stamp is stamped. For Rs.2,500 or below it, Rs.2 stamp is stamped. For Rs.3,000 or below it, Rs.3 stamp is stamped.

Account Payable Voucher The APV is also made for the payment purpose, but the main difference between CPV and APV is “tax deduction”. The payment for which the APV is made is usually for the parties. The tax is deducted from their amount and after that the remaining amount is paid to them for their services. The APV is made for the deduction of the tax. Different parties are charged different amount of deductions.

The taxes that are collected from different parties through APV are must be submitted in the bank within one week.

Bank Payment Voucher


Al-Ghazi Tractors Limited

After the checking and approval of APV, the BPV is prepared for the amount that is payable to the parties. Then after this, it is also checked and verified and after that the cheque is prepared for the payment. And when the payee takes its cheque, the cheque is given to him/her and all the attached documents related to it are maintained in the DBU file.

The BPV is not only made for the payable amount after deduction, the services that are not tax deductible are also paid through BPV. Such as: • Vehicle Services like petrol, CNG, Diesel etc. each vehicle has a sheet card assigned to it. This type of services taken by the specific vehicle is recorded in the card and after each month, the card is checked and the payment is made through the BPV. • Haj Expenses for the employees who are winner through the draw each year are allowed to go to perform Haj and all the expenses are from the company, the payment of these expenses is made through BPV. • Loan like motorcycle loan is given to the employees of about Rs. 20,000, and this payment is also made through the BPV. And also there are many other payments made through BPV, but due to shorten of time it is not possible to mention all. Journal Voucher Usually the DJV is prepared for the adjustment purpose, if there were any mistake happened during the maintenance of records than to correct it or to rectify it the DJV is prepared. The account in which there is mistake occurs, that account is debited and the rectification account is credited by the same amount.

Cash Receipt Voucher 28

Al-Ghazi Tractors Limited CRV is prepared at the time of receiving cash. Usually the CRV is prepared for scrape sale. The compay’s own workers or employees buy most of the things that become scraped. So the CRV is prepared for it. One copy of that receipt is keep in record and one copy is given to the employee so that he can make a gate pass for taking the scrape product out of the organization This process is as follows: The employee/worker writes an application to the GM (Plant) and after approval from the Admin Department, it comes in the Finance Department where the CRV is made for it. And then the product can easily be taken by employee/worker after making a gate pass. There is 15% tax is charged on the total amount for each scrape sale. Mainly the company charge the sales tax on four types of things: these are: • • • • Electricity Shell Pakistan Limited Oil, Lubricants Scrape

After each month the specific sales taxes are maintained. The total amount of the sales taxes for a month is recorded on the receipt and then the government refund that amount to the Company because it is tax exempted.


Al-Ghazi Tractors Limited



Al-Ghazi Tractors Limited

Horizental analysis Income statement
a/c Name 2004 2003 Change 2004-2003 Sales C.G.S GP Distribution cost Admin expenses Income Operating income Operating expense Finance cost Profit before tax Tax Profit after tax 9022515 (7387468) 1635047 (65152) (80043) 1489852 564660 (141571) (2761) 1910180 (680862) 1229318 779322 (6136774) 1602548 (61403) (79744) 1461401 303372 (121700) (7517) 1635556 (574683) 1060873 +1283193 +1250694 +32499 +3749 +299 +28451 +261288 +19871 -4756 +274624 +106179 +168445 % change (2004-2003)*100/2005 14.22% 16092% 1.98% 5.75% .39% 1.90% 46.27% 14.03% -172.2% 14.37% 15.59% 13.70%


Al-Ghazi Tractors Limited

Vertical Analysis
a/c Name Sales C.G.S GP Distribution cost Admin expenses Operating Income Income Finance cost Profit before tax Tax Profit after tax 2004 9022515 (7387468) 1635047 (65152) (80043) 1489852 564660 (2761) 1910180 (680862) 1229318 % 100% 81.87% 18.12% (.70)% (.88)% 16.51% 6.25% (0.031)% 21.07% (7.54)% 13.62% 2003 7739322 (6136744) 1602548 (61403) (79744) 1461401 303372 (7517) 1635556 (574683) 1060873 % 100% (79.20)% 20.80% (.07)% (1.0)% 18.88% 3.91% (1.57)% 21.13% (7.24)% 13.7%

Balance Sheet Horizentol analysis
a/c name Current assets Operating assets Capital work in process Long term loans Deffered tax Current liabilities Long term liabilities Capital 2004 2035794 204955 2594 867 40224 1412869 45607 827107 2003 1869380 213276 8461 2520 32436 911411 2210 1208202 change 171814 (8321) (5867) (1653) 7788 201458 43397 (381095) % 8.13% (4.05)% (226.17)% (190.5)% 19.36% 35.49% 95.15% (46.07)%

Vertical analysis Balance sheet Assets side
a/c Name Current assets Operating assets Long term loans Deffered tax 2004 2035794 208698 867 40224 % 89.90% 9.13% .03% 1.75% 2003 1869380 222887 2520 32436 % 87.84% 10.50% .11% 1.52% 32

Al-Ghazi Tractors Limited Total assets 2285583 100% 2121823 100%

Liability side
a/c Name 2004 Current liabilities 1412869 Long term 45607 liabilities Capital Total lia. & capital 827107 2285583 % 61.81% 1.99% 36.18% 100% 2003 911411 2210 1208202 2121823 % 42.95% .104% 56.94% 100%

Ratio analysis For 2004
Current ratio=
Current assets Current liability = 1863980 911411 = 2.04

Debt ratio = =

total liabilities Total assets 913621 2121823

= 0.430

Al-Ghazi Tractors Limited

Return on assets =

Earnings for common stockholders Total assets 1229318 / 2285583 = 0.53

Total asset turn over =
= Gp margin = 9022515 2121823

sales/CGS Total assets = 4.25

GP/Sales = 0.1812

= 1635047/9022515 = 1912941/9022515 = 0.21 Net profit margin EPS =

Operating profit margin = OP/ Sales NP/Sales = 1229318/9022515= 0.13

= Earnings available for common stock / shares for common stock =1229318 / 60000000 = 0.02

P/E Ratio = MPS / EPS =5 / 0.02 = 250

For 2003
Current ratio =
Current assets Current liability = 2035794 / 1412869 = 1.44

Debt ratio =

Total liabilities Total assets =1458476 / 2285583 = 0.63

Total asset turn over =

sales/CGS Total assets

=7739322 / 2285583 = 3.386 34

Al-Ghazi Tractors Limited

Gp margin



= 1602548 / 7739322 = 0.20

Operating profit margin = Operating Profit / Sales
= 1643073 / 7739322 = 0.21

Net profit margin



= 1060873 / 7739322 = 0.13 6136774 / 408283
= 15.0

Inventory turnover = CGS / Inventory
Return on equity = net income / capital

=1060873/ 1208202 = 0.87

Return on asset = sales / total assets = 7739322 / 2121823 = 3.64 EPS = Earnings available for common stock / shares for common stock

= 1060873 / 40000000 = 0.025 P/E Ratio = MPS / EPS = 5 / .025 = 200


Al-Ghazi Tractors Limited

• • • • •

AGTL has the distinction of bring the first automobile industry in Pakistan to earn the ISO-9002 recognition. This major advance of tuning up the production activities through ISO9000 has put in place a system of sound quality activities and cross functional intergrated process through out the company. Their manufacturing plant is the symbol of engineering dynamics the AGTL plznt at D.G Khan. Their 3% parts are make locally. Lower cost producers of high quality products. For customer satisfaction AGTL has dotted whole country with large dealer network(100 dealers and 1000 customer care service center) customer care center and tractor workshop. AGTL has won the following rewards which adds to their strengthens 36

Al-Ghazi Tractors Limited 1. 2. 3. 4. top companies performance awards. Corporate excellence awards best calender awards golden jubilee award • Their worker commitment to their organization is also their great strenth. • Quality products with strong threshing power.

As AGTL is currently market leaders, they are few weaknesses as compared to strengths. • Low advertising budget as compare to competitors.

They are looking forward to capture market with more diversification in the product. Through introduction of new product and they think that product will become market success in the future, as they are delivery all, that which is demanded by the customer.

New model introduce by competitor having turbo charge whose major advantage is that it result in less consumption of fuel.

Sales tax if implemented by the government than it will increase the price and it will not be benificial for organization as it will reduce the total sale.

Government has plan to import duty free tractors from Russia which are less costly then FIAT quality products.


Al-Ghazi Tractors Limited

AL GHAZI TRACTOR LIMITED: AL-ghazi tractor establish as government institution but it not perform in the way as it is performing now .so it was privities as Pakistan first privatized firm. After privatization it start the journey of success and today it is emerged as market leader in industry but that largely was the out come of: • • Dedication to work in the direction of profitability No compromise on quality


Al-Ghazi Tractors Limited • • • • • • • Learning from competitors Undurstanding the needs and wants of customers Providing benefits and ficilities to employees to boast there moral Widening the vision through marketing research With culture of corporation and poitics free Decision making from bottom to top With updating the production facilities according to new needs and wants

• • •

Having the largest share in the industry Best quality products on which customer trust With employees so motivated that they are ready to perform wonders


Al-Ghazi Tractors Limited • Un match in Pakistan corporate world in giving of returns to share holders(about 293 millions in year 2000) • Paying the tax to Govt. which is equivilant to 35% of company profit

Role Of Corporation In Industry: AGTL is the 21st century market leader. To maintain this they have to more caution regarding there competitors and involvement of market research in there decision should be at peak.


Al-Ghazi Tractors Limited Departments: Marketing department is there most influencing and playing its role in achieving the core objective. Further advancement can be made in its role through increasing the advertising budget. Product Mix There strategic business unit is fiat 480 as 70% of the sale of AGTL is based on this product .it is the good sign that AGTL considering the addition of two new product with lesser horsepower as compared to Fiat 480. As our country is largely composed of those farmers, which are having land, less than 25 Akers.

In AGTL Quality Is The Thing Which Is Un Compromising And Which In Fact First Step In All The Success Which AGTL Gain And Will Remain Gaining If They Remain Firm On There Motto. 41

Al-Ghazi Tractors Limited • • •

Riaz Hassan depti Manager Distribution


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