CHAPTER - I

INTRODUCTION

TRACTOR INDUSTRY IN INDIA

1.INTRODUCTION:

Agricultural mechanization made a small beginning with the introduction of imported tractors
and by acquiring war surplus tractors and bulldozers for undertaking, basically, land reclamation
and to some extent mechanical cultivation. In 1947, Central Tractor Organization and a few State
Tractor Organizations were set up, which, during 1947-1959, reclaimed about one million
hectares of land. This in turn created demand for tractors to undertake follow up cultivation in
the reclaimed areas. The number of tractors in use estimated by was 8,500 in 1951, 20,000 in
1955 and 37,000 in 1960. Up to 1960, the annual demand of tractors was met entirely through
imports.

When planned economic development of the country was launched in 1951, tractor industry was
included in the “Core Sector” which indicated its strategic importance. Its growth and
development policies were, therefore, reviewed on Plan to Plan basis. As in the case of all other
industries, farm equipment industry had to follow the legislation enacted under Industrial
Development and Regulation Act, 1951, the main features of which were:

 Reservation of certain sectors of core and heavy industry for the Government i.e., steel,
machine-tools, aircraft, etc.
 Reservation of certain class of items exclusively for the defined small scale sector
 Necessity of obtaining an industrial license from the Government of India for
manufacturing any new article when capital investment in land and building exceeds Rs
1.0 million
 Phased local manufacturing program
 Imported plant and machinery
 Technical experts from collaborators and training of Indian counterparts.

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 A policy of protection of domestic industry was introduced where in imports were totally
prohibited if local manufacturing capabilities were adequate for meeting demand. Import tariffs
were levied in other cases where local manufacturing set up was inadequate, necessitating
imports. As industrialization progressed, exemptions from licensing were liberalized first to Rs
10.0 million than to Rs.30.0 million and further to Rs 50.0 million. During 1992-96 licensing
was further liberalized and most of the industries were de-licensed. Development Councils for
various sectors of industry were also set up at the national level to advise the Government on the
steps to promote and foster industry. The growth of the Farm Equipment Industry in India has to
be viewed in the backdrop of this National scenario

2. TRACTOR INDUSTRY: 1961 -70

Development of the tractor industry in the sixties was dictated by the anxiety to promote
mechanization of agriculture by encouraging local manufacturing of tractors and at the same
time, protecting the interest of farmers by making them available tractors at the reasonable
prices. The tractor manufacturing in India started in 1961. First four entrepreneursEicher, Gujarat
Tractors, TAFE, Escorts were representing trading houses as dealer or sub-dealer of tractors, the
fifth, Mahindra & Mahindra was a major player in the automobile sector. These units were
licensed in 1960-61 with aggregate capacity to manufacture 11,000 tractors. Though all these
units went into production subsequently, it was noted that pace of installation of production
capacity was slow. On the other hand, the demand of tractors was increasing at a steep rate and
expected to grow further in the ensuing years. Besides considering industrial licenses to add the
additional production capacity, import of tractors continued to meet the demand of farmers. As
the prices of tractors imported from the East European countries were lower than locally
manufactured tractors, the duties on imported component were raised to 40%. Simultaneously, to
protect the interest of farmers in the situation of acute shortage of tractors Government imposed
statutory control on the selling prices of indigenously manufactured tractors in 1967. However,
this control was withdrawn in October 1974 when the supply position was eased. To meet the
growing demand, the Government decided to invite additional entrepreneurs into tractor
manufacture in 1968. As given by the production of tractor started in 1961 with 880 units which
rose to over 5000 units in 1965 and crossed 20,000 units in 1970. There were about 52,000
tractors in use in 1965, which increased to 146,000 tractors in 1970.

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3. TRACTOR INDUSTRY: 1971-1980

The Government decision to invite new entrepreneurs to manufacture tractors in 1968 and the
sudden upsurge in demand due to Green Revolution led to a flood of requests for new
collaborations. Of these only 6 units established the manufacturing facilities. Escorts established
Escort Tractors Limited and started manufacturing Force tractors in 1971 in collaboration with
Force, U.K. Three of these units, namely, Kirloskar Tractors, Harsha Tractors and Pittie Tractors
could not survive and closed down their plants. During this period, the emphasis was on
indigenous production of the tractors and the Government extended full support to old and new
entrepreneurs to establish local manufacture. The credit facilities to the farmers for the purchase
of tractors were increased and liberalized to enlarge the market. The import of tractors both fully
built and in CKD form to new entrepreneurs was continued. Because of oil crisis in 1973, and
the resultant economic crisis, the import of fully built tractors was banned in 1973 except under
specific World Bank Projects and CKD import to new entrepreneurs in the process of
entrepreneurs in the process of establishing local production facilities. With more manufacturers
entering in the field in a stagnant demand situation, the market became intensely competitive
from 1973 onward. The Statutory Price Control on tractors was lifted in October 1974. As a
result of Government directive to the commercial banks to increase their proportion for rural
lending, the commercial banks opened branches in rural areas. This action was supported by
availability of refinance facilities to commercial banks for agricultural development from
National Bank for Agriculture and Rural Development. Credit available to farmers increased
significantly and the tractor market expanded rapidly from the beginning of 1977. The
production of tractors more than doubled during a five year period. It was 33,000 units in 1975
and increased to over 71,000 units in 1980. The number of tractors in use also crossed 500,000
units mark.

4. TRACTOR INDUSTRY: 1981-90

The expansion in the tractor market during late seventies led to the setting up five more units for
the manufacture of tractors. One of these was in the public sector in collaboration with an U.K.
firm and the rest were in the private sector. Only one firm in private sector had collaboration
with an outside (Romanian) firm and others used indigenous know-how. After having attained
complete indigenous production by most of the already established tractor units, the post 1980

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period was marked by increased production from all units. However, except VST Tillers &
Tractors, other four newly established units during eighties could not sustain the market
competition and closed their plants. In order to make available tractors to the farmers with small
holding of land, the Government exempted production tax (excise duty) for tractors of 9 and
lower drawbar kW. This exemption was extended to the tractors fitted with engine not exceeding
1800 cm3 subsequently. This phase of industry was comprised of consolidation and up-gradation
of technology to improve the quality of products. The Working Group in the Ministry of Industry
and later on a Group in the Ministry of Agriculture recommended improving fuel efficiency of
tractors by fixing norms of specific fuel consumption at power take-off shaft. They also
recommended improving the parameters of noise and vibration levels, emission levels,
ergonomics and safety aspects. The industry grew slowly in the early eighties and produced
about 75,000 tractors in the year 1985. In the later half of eighties industry grew very fast and
produced almost 140,000 tractors in 1990. The number of tractors in use in India reached one
million units mark in 1989 and in 1990 the population of tractors was estimated to be 1.2 million
units. Export of tractors mainly to the African countries, also started in the eighties. Thus, India,
a net importer up to mid seventies became an exporter during eighties.

5. TRACTOR INDUSTRY: 1991-98

Indian industry has seen a remarkable change from a complete protection in early days to a
competition in the international market during nineties. Government approval and obtaining
industrial license for manufacture of tractor was dispense with in 1992. The foreign companies
can also take up tractor production in India, after following prescribed procedure or obtaining
approval from the Government. However, import of fully built up tractor has been restricted
presently and the same can be imported against import license or public notices issued in this
behalf. Credit facilities to the farmers for the purchase of tractors have been continued. The
collaboration of Escorts with Force came to an end in 1994 and Escorts started to produce
Farmtrac tractor in place of Force tractor. Haryana Tractors has been producing tractors on a
very irregular basis. Bajaj Tempo started manufacturing in 1997 and International Tractors
(Sonalika) has started production in 1998. The production of tractors from all units during 1997
was over 255,000 units. The number of tractors in use in India at the end of 1997 was estimated
to be over two million units.

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 SWOT ANALYSIS

Strengths:

 Investments by foreign car manufacturers.

 Increase in the export levels.
 Low cost and cheap labor.
 Rise in the working and middle class income.
 Increasing demand for European quality.
 Expert skills in producing small cars-good for environment.
 Large pool of engineers.

Weakness:

 Low quality compared to other automotive countries.

 Low labor productivity.
 High interest rate and overhead level.
 Production cost or generally higher than some other Asian states, such as China.
 Low investment in Research & Development area.
 Local demand is still towards low cost vehicles, due to low income levels.

Opportunities:

 Growing population in the country.

 Focus from the government in improving the road infrastructure.
 Rising living standards.
 Increase in income level.
 Better car technology is demanded.
 Rising rural demand.
 The car is a status symbol.
 Women drivers have increased.

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Threats:

Less skilled labor.

Lack of technologies for Indian companies.

Increase in the import tariff and technology cost.

Imports of two wheelers from the Chinese market in India.

Smaller players that do not fulfil international standards.

Increased congestion in the urban areas

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 PESTLE ANALYSIS

Political:

The policies of the government and the ruling party affect the automotive industry and the
various regulations on FDI also affect investment in the sector. The government’s investments on
infrastructure like roads affect the automobile sales.

M&M is operating in Egypt. Egypt is undergoing a great political turmoil. It has been around
two years since independence but the political climate hasn’t got better yet. Instability in
government cannot provide the management and growth scenario that a country needs. This
leads to lower economic output. A poor economy impacts consumption. Also, social instability
can create problems in operations running in those countries.

Economic:

Recent slump in the economic conditions have led to fall in car sales. Currency fluctuations and
rising fuel costs lead to drop in automobile sales. With the overall GDP growth in the
international market going down, sales in the sector are bound to fall. At the same time,
economic slump in the manufacturing industry which supplies raw material to the company leads
to a fall in sales. In June, M&M saw a 13% drop in sales.

Social:

Cultural issues are present in all aspects of international activities, including selling to foreign
customers, buying materials overseas, working with vendors, and setting up operations.
Mahindra operates in six varied cultural markets and has faced this issue when going global.

Technological:

Innovation plays a big role in moving ahead in the sector. M&M has constantly upgraded its
technological knowledge through JVs with several foreign partners like Renault, Force,
Ssangyong etc. Mahindra launched Rewa in the Indian market which was a fully electric
powered vehicle. However, the technology used was not so robust as the car was not energy

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efficient and would travel only 60 kms on a full charge of 8hours; thus consuming considerable
amount of energy.

Legal:

Global Vehicles alleged that Mahindra failed to fulfill its contract obligations in USA. Mahindra
entered into an agreement with Global Vehicles because the company was interested in
launching a small truck, the Scorpio, in the US market. Mahindra spent nearly $100 million in its
efforts to bring the Scorpio vehicle to the US market. The process of entering the US is very
complex, costly and time consuming.

Environmental:

Customers have now become more environment conscious and would consider buying a brand
which is sustainable and is focusing on eco-friendly processes. M&M introduced Rewaan
electric powered car which was pollution free and would have helped in bringing down CO2
emissions. It has been now mandated on automobile industries to manufacture products and
source raw materials which can be easily disposed and recycled. International markets have
stringent environmental and CO2 emission demands which could hamper further growth of the
company in that market.

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 INTRODUCTION TO FIVE COMPANIES

SELECTION OF COMPANIES:

 Mahindra and Mahindra

 Swaraj tractors
 Eicher tractors
 John deere tractors
 Force farm Motors

INTRODUCTION OF COMPANIES:

1.Mahindra& Mahindra:

Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as Mahindra &
Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed.
After India gained independence and Pakistan was formed, Mohammed immigrated to Pakistan.
The company changed its name to Mahindra & Mahindra in 1948. It eventually saw a business
opportunity in expanding into manufacturing and selling larger starting with the assembly under
license of the Willys Jeep in India. Soon established as the Jeep manufacturers of India, the
company later commenced manufacturing light commercial vehicles and agricultural tractors.
Today, Mahindra & Mahindra is a key player in the utility vehicle manufacturing and branding
sectors in the Indian automobile industry with its flagship Mahindra and uses India's growing
global market presence in both the automotive and farming industries to push its products in
other countries.

Mahindra & Mahindra is the only Indian company among the top three tractor manufacturers in
the world. The Group has a leading presence in key sectors of the Indian economy. The Group
employs over 50,000 people and has several state–of–the–art facilities in India and overseas. His
year under review has witnessed positive vibes in Industrial Relations Scenario across all
manufacturing locations for the Automotive and Farm Equipment Sectors. Employees have
always been valuable assets of the Company and focus was laid in propagating proactive and

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employee centric practices at the shop floor. The Company’s endeavor has been to ensure
transparent communication of overall business goals and implement an efficient concern
resolution mechanism.

Mahindra & Mahindra has comprehensive manufacturing facilities with high level of vertical
integration. These manufacturing plants keep abreast with the latest technology to meet the
growing market expectations. These manufacturing facilities have some of the best technologies
and equipment in India and provide for a very challenging and satisfying work environment. Its
plants in Mumbai and Nasik manufacture multi–utility vehicles and engines are produced at the
Igatpuri plant. Utility Vehicles, Light commercial vehicles and 3 wheelers are manufactured at
the Zaheerabad plant in Andhra Pradesh and three–wheelers at the Hardwar plant.

Achievements/ recognition:

 Mahindra & Mahindra Farm Equipment Sector has won an AE50 Outstanding Innovation
Award 2007. 'Golden Peacock Occupational Health & Safety Award' for the year 2007.
 Mahindra Riva receives CII Design Excellence award.
 Keshub Mahindra honoured with ASSOCHAM Lifetime Achievement Award.
 Mahindra & Mahindra Ltd. was awarded the 'Excellence in Innovation' Award in 2007.

Milestones:

 Mahindra Holidays & Resorts India Limited a leisure hospitality provider offering
quality family holidays and part of the Mahindra Group of Companies.
 Mahindra & Mahindra's Farm Equipment Sector (FES) showcased India's first bio–diesel
 Zaheerabad plant has bagged the 1st prize in National Energy Conservation Award –
2008.
 Nasik Plant has been awarded the National Certificate of Merit for Excellence in Energy
Management.
 Nasik Plant was awarded the prestigious CII National Award for Excellence in Water
Management 2008.

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 The Mahindra Group was honoured with nine communication awards at the 48th annual
ABCI (Association of Business Communicators of India) awards nite in Mumbai on
Friday, 7th November 2008.
 Mahindra Riva receives CII Design Excellence award in 2013.

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2.SWARAJ TRACTOR:

SML ISUZU, earlier known as Swaraj Tractor, incorporated in 1983 as Swaraj Vehicles, is
engaged in manufacturing of vehicles for goods and passenger applications. In 1984 the
company entered in a joint venture Punjab Tractors, Thus the name of the company was changed
to Swaraj Industry.

Swaraj manufactures a range of vehicles such as Tractor, trucks, buses and ambulances. The
company has launched products like 4WD, Samrat, Sartaj, Dual Cab, Supreme–8 tonner, Truck–
Super 12, Super ALFD and many more.

Milestones:

 1983– Swaraj Vehicles was incorporated in July of that year.

 1984– The company entered in a joint venture with Punjab Tractors, Mazda Motor
Corporation, Japan & Sumitomo Corporation, Japan. SVL was renamed as Swaraj
Industry.
 1986– The company commences commercial operations.
 1989– It set up an in–house tooling for local production of chassis long member.
 1990– It launched its second truck model (Swaraj Mazda Super).
 1991– Transmission components indigenised.
 1992– The company started supply of trucks to the defence ministry. It supplied 500
vehicles to the defence sector.
 1993– The company launched its third truck model (Swaraj Mazda Premium).
 1995– BIFR approves rehabilitation scheme.
 1996– The company developed a 4–wheel drive truck.
 1998– The company completes wipe off of accumulated losses.
 2000– SML extended technical assistance agreement up to October 2004.
 2002– The company’s profit before tax for FY 2002 crosses Rs 100 million mark.
 2003– Profit before tax for FY–2003 grows 115% to Rs 225 million.

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 2005– The company’s cumulative sales crossed 86,000 vehicles. In June, Punjab Tractors
sold off its 15% of equity stake in favour of Sumitomo Corporation, Japan. In August,
Mazda Motor Corporation sold off its 15% of equity holding in favour of Sumitomo
Corporation, Japan
 2007– The company conducted trial production of Isuzu bus LT134 in July.
 2008– The company launched ultra luxury buses in July
 2009– Sumitomo raised its stake in the company to 53.5% by purchasing the entire equity
stake of Punjab Tractors in the company.

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3.EICHER TRACTORS:

Eicher Motors was incorporated in 1982, is engaged in manufacturing of commercial vehicles,

motorcycles and engineering components. In 1986, the company introduced its first product
‘Canter’.

It is one of the leading manufacturers of commercial vehicle. It has manufacturing facilities

located in Madhya Pradesh, Tamil Nadu, Maharashtra, and Haryana.

Products:

1948:Good earth Company set up Motors – It manufactures several kinds of commercial

vehicles.Its 50–50 joint venture with the Volvo group, VE Commercial Vehicles Limited,
designs, manufactures and markets reliable, fuel–efficient commercial vehicles of high quality
and modern technology, engineering components and provides engineering design solutions. It
has technical and financial collaboration with Mitsubishi Motors Corporation of Japan which led
to manufacturing of CANTER range of vehicles. It manufactures around 20000 vehicles per
annum.

Milestones:

 1952–57: Goodearth Company imported and sold about 1500 tractors in India
 1958: Eicher Tractor Corporation of India Ltd. incorporated
 1959:First indigenous Eicher tractor built. Eicher came out with India’s first indigenously
built tractor from its Faridabad factory.
 1980: EicherGoodearth Ltd. name given to Eicher.
 1987: Eicher Tractors went public
 1990: EicherGoodearth buys 26% equity stake in Enfield India Ltd.
 1992: Eicher Tractors Ltd. selected as ‘Company of the Year’ for 1990–91 in the four–
wheeler category comprising commercial vehicles, passenger cars, jeeps and tractors.
 1993: Eicher adopts new identifier.Eicher acquires majority stake in Enfield India (60%
equity shareholding)

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  1994: Eicher Motors Ltd. ends the technical assistance agreement with Mitsubishi after a
successful transfer of technology and achieving total indigenisation. Enfield India Ltd.
changed its name to Royal Enfield Motors Ltd.
 1996: Eicher Tractors Ltd. amalgamated with Royal Enfield Motors to form Eicher Ltd.
 2005: Eicher Motors Ltd. has disinvested the businesses of tractors and engines to TAFE
Motors & Tractors Ltd. (TMTL).

Recognition:

 It has received ISO certification for its quality systems.

 It has received IES excellance award as recognition of excellance in productivity, quality
innovation and management.
 The company has received award from National Productivity Council for best
performance in production.
 Eicher Motors, a company that manufactures iconic Royal Enfield motorcycles

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4.JOHNDEERE TRACTORS:

Since its founding in 1837, John Deere has seen a great many changes its business, Its
products, its services. Change always comes with opportunity. And Deere has always been
ready and willing to embrace it. Yet, through it all, John Deere is still dedicated to those who are
linked to the land – farmers and ranchers, landowners, builders, and loggers. And Deere has
never outgrown, nor forgotten, its founder's original Those values determine the way we
work, the we offer, and the unsurpassed treatment you get as a customer, investor, employee.

John Deere was a Vermont blacksmith, who, in search of opportunity moved west. Arriving in
Grand Detour, Ill., he observes the cast iron plows in use, which works well in the light, sandy
soil conditions of New England, not faring so well in the heavy, sticky prairie soils of the
Midwest. Using steel from a sawmill sawbladethe fabricates two with a concave curve that
successfully “sheds” soil as they work instead of clogging up. Demand for John Deere’s self-
cleaning grows and 10 plows are manufactured in 1839, 40 in 1840, 70 in 1841 and 100 in 1842.
In 1848, John Deere moves to Moline, IL, a more business-suitable location and begins to
manufacture plows under the John Deere name. Production ramps up slowly, but by 1849 the
company is manufacturing more than 2000 plows annually.

Milestones:

 2006 Safety and Health measures are integrated into Deere Production System audit
process, allowing for more frequent audits of unit Safety Management Systems.
 2007 Deere & Company is among the top 10 percent of 1,100 publicly-traded U.S.
companies ranked as corporate citizens by CRO (Corporate Responsibility Officer)
magazine. John Deere appears in the top 100 for the seventh time in eight years.
 2008 Deere & Company achieves its highest rank ever in the annual "100 Best Corporate
Citizens" list, which scored Deere 4th among more than 1,000 publicly-traded, large-cap
U.S. companies. The yearly evaluation is compiled by CRO magazine, a journal of The
CRO, a membership organization for corporate responsibility officers.
 Environmental Protection Agency's Climate Leaders program, which Deere joined in
2007.

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 2009 John Deere ranks second in CAREERS & the disabled magazine's annual list of
"Top 50 Employers." The list ranks organizations that magazine readers say they would
prefer to work for or that they consider progressive in hiring people with disabilities.
 2010 Thirty-two John Deere units surpass 1 million employee work-hours without a lost-
time injury.
 2010 John Deere Cylinder Division hits 15 years – 7,951,752 hours – without a lost-time
injury.
 2000-2010 More than 200 awards from the National Safety Council are presented to
Deere locations.
 2012 John Deere launches a global employee volunteerism initiative, with employees
recording more than 40,000 hours of volunteer service in the program's first year.
 2013 John Deere announces a set of 2018 enterprise eco-efficiency goals for energy,
waste, water, and products to address environmental sustainability and responsible
management of natural resources.

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5.FORCE FARM MOTORS LTD:

Be integrated in BMW’s global data. The Force Motors plant at Chennai has been developed the
company was founded in 1958 by N.K.Firodia. Force tractor bought a controlling stake in the
company, renaming it "Tiller". Germany's Daimler-Benz, a long-time collaborator with Firodia
because of their ownership of the original Tempo works in Germany, owned 16% of Bajaj
Tempo. They sold their stake back to the Firodia group in 2001, meaning they once again held a
controlling interest. It was agreed that the company would gradually phase out the use of the
"Tempo" brand name, as it still belonged to Mercedes-Benz. The name of the company was
changed to Force Motors in May 2005.

Force Motors, formerly Bajaj Tempo, is an Indian manufacturer of three-wheelers, multi-utility

and cross country vehicles, light commercial vehicles, tractors, buses and heavy commercial
vehicles. It was originally named Firodia Tempo Ltd. and later after partial acquisition by Bajaj
Auto as Bajaj Tempo Ltd.

In a move away from its long-established business, of being a Commercial Vehicle maker, Force
Motors entered the Personal Vehicles arena with a Sports Utility Vehicle the FORCE ONE in
2011 and an Extreme Off-Roader Vehicle- the Gurkha in 2013.

Certification:

 In the year 2000, the Pithampur plant and its Mercedes Engine facilities received the
prestigious ISO 9002 certification by quality system.
 In the year 2003, the entire Akurdi plant and Pithampur plant were certified to
9001:2000.
 The Company has completed the development aspect of a full range of Common rail
engines which will be highly fuel efficient enabling a low carbon foot print.
 The Company has developed a new family of transmissions with higher efficiency, low
friction and high reliability, using lightweight materials. All these weight reduction
activities and development of new engines and transmissions have called for significant
technology development and absorption activity.
 The expenditure on Research & Development for new products, including the
expenditure on Projects and Tool Engineering, was 2.69 % of the operational turnover of
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 the Company for the year under report. The Company continues to maintain its emphasis
on Research, Development and Tool Engineering activities.

Milestones:

 Tempo was rechristened as FORCE MOTORS LTD.

 New state–of–the–art HCV manufacturing facility was inaugurated at Pithampur.
 Force Motors launched TravellerShaktiman, Traveller Luxury and Traveller Smooth.
 Force Motors enters into Agreement with Daimler AG, Germany, in respect of licensing
of technology for Multi-Purpose Vehicle (MPV).
 Force Motors launched its first offering in the Personal Vehicles segment, the FORCE
ONE.
 Force Motors shakes hand with HPCL for oil supplies
 Force Motors introduces a revolutionary passenger vehicle, Traveller 26.
 Force Motors introduces Gurkha, the Extreme Off–Roader Vehicle.

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 CHAPTER-II

MARKETING STRATEGIES

1.MAHINDRA AND MAHINDRA:

Product:

Mahindra and Mahindra deal with farm equipment, utility vehicles and commercial vehicles. Its
portfolio includes a wide range of products that comprises heavy trucks, light trucks, two
wheelers, tractors and school buses. Mahindra has also built military vehicles and its Willys jeep
was used for transportation in World War II. The esteemed company has also entered into
partnership deal with Renault S.A and its result was the beautiful Mahindra Renault Logan. The
various Mahindra products are-

 Mahindra Tractors
 Mahindra Scorpio Getaway
 Mahindra Bolero

Place:

Mahindra owns many assembly plants and manufacturing plants. Its assembly plants are located
in China, India, Brazil and United Kingdom. It has a global presence and its products are sent to
countries like Italy, China, South Africa, USA and UK. It has proved its capabilities by sending
strong messages. To test the markets of China it sent tractors to one single province and managed
to sell them at 20% higher price than its local rival because of its shrewd business sense and the
superior quality of the products. This is how it captured the markets in China with determination
and ample business sense. In India, its plants are located in Bangalore, Chaka and Nasik in
Maharashtra, Haridwar in Uttarakhand.

Its manufacturing facilities are distributed and spread over a large area of 500,000sq.meters. The
company’s infrastructure includes 30 offices for sales, 500 dealers, 600 stock points, 500 service
points and all these are connected by an all-encompassing IT structure. It has opened various
showrooms all over the country.

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Price:

The Minimum Price of mahendra tractor was starts from 4,50,000. The pricing policy of
Mahindra and Mahindra is dependent upon various factors that determine the sales price of the
vehicles. The costs incurred at every stage includes manufacturing to assembling the parts and
making them a whole product and the costs to reach the product to the consumer.The company
has infiltrated in every corner of the country with products that are reasonably priced and show
quality.

The company follows the policy of both the premium pricing and the flexible pricing to grasp the
maximum consumer value. The rates of all its products are very competitive, as it has taken a lot
of market research as well as the cost factors and the competitor’s rates to arrive at a particular
sales price. In order to cater to the whims of every section of the masses they have launched
products with different prices that are suitable for different sections.

Promotion:

Mahindra and Mahindra have taken various steps in order to promote their vehicles throughout
the world. It has decided to use the visual media and the print media fully so that the people
become aware of its potential and products. Advertisements featuring attractive models with its
products have been handled gracefully so that Mahindra and Mahindra becomes a household
name.

In 2011, Mahindra launched Kareenakapoor Khan, the famous actor, as its brand ambassador for
Mahindra two wheeler’s advertisements where she asks the consumers to buy a two-wheeler as
INR 1500 of petrol was being supplied free with it.. Advertisements have been placed in
newspapers and various magazines as well as television and internet. The present brand
ambasidor of mahendratractor company was actor maheshbabu

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2.SWARAJ TRACTORS:

Swaraj is a public company of Japanese origin. It is associated with manufacturing sector of the
automobile industry. Its major activities include sale, marketing and production of diesel engines
and commercial vehicles. The company was founded in the year 1916 but it actually came into
being in the year 1934 when it was renamed Swaraj.

In the year 1971, Swaraj signed a capital agreement with another automobile giant General
Motors. It has targeted small industries, the mass market of the upper class and upper-middle
class individuals and logistic companies as its potential customers.

Product:

The commercial market of Swaraj has spread globally with its major focus on the construction of
diesel-powered tractors and trucks and therefore it has become one of the major manufacturers of
heavy-duty tractors and medium trucks.

More than 20 million diesel engines belonging to brand Swaraj are in usage in the world market.
Companies like Renault-Nissan Alliance and Force Motor Company have been its clients for
diesel engines for a long time.

Place:

Swaraj is an international corporation with its headquarters base at Tokyo in Japan. It has several
subsidiaries and joint ventures with companies from places like Turkey, Russia, China, Malaysia,
Indonesia, Philippines, South Africa, Taiwan, India and Vietnam

Swaraj has to manufacture and assembling facilities in Hokkaido, Tochigi and Fujisawa. Market
presence for Swaraj vehicles is seen mostly in places like Africa, Asia, United States, Australia
and the United Kingdom. Swaraj has a widespread distribution network that includes channels
like dealerships, outlets and countrywide branches. Its vehicles are easily available via
showrooms situated at strategic places.

22
Price:

Price is one of the major aspects of any organization and one has to keep in mind several aspects
before adopting a suitable policy. Swaraj has taken into consideration various factors like the
economy of a place, demand, supply, prices of its competitors and its own actual costing before
determining the price factor.The Minimum Price of mahendra tractor was starts from 4,50,000.It
has ultimately adopted a value-added pricing policy for its qualitative products by charging mid-
premium prices. As it faces lots of competition from rival companies it has also maintained a
competitive price range so that customers do not break its loyalty towards Swaraj brand. Prices
of its consumer vehicles are nearly same as its competitors to give them a strong competition.

Promotion:

Swaraj has a strong marketing strategy to promote its products in international market. It has
used an aggressive policy for sales promotion that includes mouth publicity and catchy and
distinctive ad campaigns shown on several popular television channels. The company has also
advertised via hoardings placed at popular and populated areas to gain maximum coverage. Ads
are placed in magazines and newspapers so that customers are aware of products and recent
happenings. Its promotional incentives include referral and loyalty programs.

It is determined to keep its customers happy and hence has introduced several schemes to this
effect. A movie titled Spy Kids had Trooper and Swaraj Axiom to promote brand Swaraj
amongst mass market. The company has a commercial service called vehicle telematics for
tracking and monitoring operations of commercial vehicles in Japan by usage of GPS tracking
devices

3.EICHER LTD:

Product:

Eicher Motors is one of the leading automotive companies in India. The products from Eicher
Motors can be divided into 3 categories according to the subsidiaries of the company.

23
Commercial Vehicles: Some of the offering under this segment are Eicher trucks and buses,
Volvo Trucks, engineering components. Some of the examples of products are: EICHER PRO
1059, EICHER TERRA 16, Eicher Ambulance, Water tanker, Volvo FMX, Power-train
components etc.

Price:

Eicher Motors Ltd. offers a wide variety of products and therefore the pricing strategy is
generally different for each category. Eicher Motors Company follows premium pricing policy
for its tractors. TheSome of the competitors of this brand are Bajaj, Honda etc. but due to the
robustness and style factor in Royal Enfield the company charges a premium price. In the
commercial vehicle space, the competitors of Eicher motors are Tata motors, Ashok Leyland etc.
They follow a competitive pricing strategy to gain more market share and generally a truck
would cost around 12 to 15 lakhs. The Volvo is priced slightly higher due to comfort and style
the product offers. About the personalized vehicle by Eicher Motors, the company charges
premium pricing policy because of the benefits that the product offers both in home and business
use.

Place:

Eicher motors Ltd. is an Indian company with a global reach. Eicher Motors has got an extensive
distribution strategy in its marketing mix. The famous brand of Eicher Motors ‘Royal Enfield’ is
not only sold in India but also exported to more than 50 countries like USA, Japan, Middle East,
UK, several European and south Asian countries etc. In India, the company has got a good
distribution network with the company owning 12 stores and more than 380 dealers across all big
cities in India. The company has got its own individual website from where you can request
brochure for getting price details and can also place orders to buy products. Eicher motors also
maintain a strong support team to provide best after sale service to its customers. The company
also offers franchise to its potential buyers. Eicher also offers competency development trainings
to its dealers to improve their productivity and enhance customer satisfaction.

24
Promotion:

Eicher has a strong promotional campaign and has built a strong brand loyalty among its
customers. The Royal Enfield brand is known for organizing various events for bike lovers like
Rider Mania which is like the annual gathering of Enfield riders across India, other event is ‘one
Ride’ which promotes people to ride their bike on a particular day, organizing trip of different
countries like Nepal, Bhutan etc. Eicher motors had also roped in Sushil Kumar as a brand
ambassador to promote Eicher Tractors. The company is also active of social networking sites
like Facebook, YouTubeetc.and shares trip stories of its members. Eicher Motors has also
undertaken several community initiatives like Good Earth Education Foundation to educate
children specially girl child and improve the quality of education in government schools. Other
social initiatives are Eicher Schools and donation to DR Shroff Charitable Eye Hospital for
treatment of blindness and deafness. Hence, this covers the Eicher marketing mix.

4.JOHN DEERE:

Product:

John Deere is a manufacturer of lawn care and heavy-equipment for drive trains, diesel engines,
forest machinery, construction and agriculture. It also offers financial and related services to its
customers like lease and sale of its own equipment. John Deere offers wholesale financing with
long-term warranties to its dealers. It also procures and resells products from a manufacturer to a
customer. Products are also sold under several brand names like Benye, Sabo and Frontier. Its
product range includes items like

Agricultural Equipment- These include sprayers, silage machines, seeders/planters, balers, cotton
harvesters, combine harvesters and tractors.

John Deere is also a manufacturer of commercial and consumer equipment. It produces snow
throwers and various other products like Starfire, all-terrain vehicles, snowmobiles and
lawnmowers. It is a supplier of transmissions and axles

25
Place:

John Deere is an international company serving a worldwide area. Its headquarters base is at
Moline in the United States. John Deere started its operations from a shop at Grand Detour in
Illinois. In the year 1842, a factory was constructed in Illinois near Rock River. This was the start
which the company was looking for and it went on to spread its network far and wide. John
Deere has factories in East Moline, Davenport, Horicon, Waterloo, France, India, Argentina,
Germany, Finland and Netherlands. Its equipment divisions are located in places like Australia,
Brazil, Argentina, China, India and Germany.

John Deere has a strong and wide-spread distribution network that includes services of retailers
and dealers. It has a strong workforce that helps in efficient dealings with help of capable
employees. For techno-savvy customers, the company offers twin options on the internet. Clients
can make a purchase via its official website or from the authorized-site dealership. Although
products are available at other shopping portals but these two offer a competitive advantage in
terms of prices.

Price:

John Deere has positioned its brand as a value-based product. Company emphasis on innovative
and quality products and has decided to set prices according to client expectation. It faces tough
competition from rival companies but John Deere is one of the very few companies that do not
allow competitors to set the pace. It actually looks in its own folder and after coming on a
decision about costs related to production, distribution and marketing set up a pricing policy that
is favorable and a perfect balance for both itself and its customers. Its product prices are
reasonable and clients are happy to purchase them even if they seem a bit higher than products of
competitors.The Minimum Price of mahendra tractor was starts from 5,00,000.

Promotions:

In order to encourage sales of its products, John Deere has decided to adopt an extensive
marketing plan. It encourages product-trials so that customers become aware of its distinguishing
features. It takes part in several trade and industrial fares and offers free demos to keep its clients

26
abreast of its innovative tools and equipment. John Deere has maintained a positive buzz about
its brand and products by generating favorable impression via good media relations. It has also
launched ads through print media in specialized magazines which offer maximum coverage.

John Deere has been involved in several sponsorship deals. It sponsors professional golf
tournament titled John Deere Classic and was also the sponsor of #97 and #23 car during
NASCAR for driver Chad Little. John Deere Green, a song was released in the year 1993 by Joe
Diffie. For John Deere enthusiasts, the company has published a Green Magazine that has
advertisements, letters from magazine readers and features on tractors.

5.FORCE MOTORS:

Product:

Force Motors manufactures a range of vehicles including tractors and small trucks .force motors
was also in top position in manufacturing the commercial vechicles.Agricultural Equipment-
These include sprayers, silage machines, seeders/planters, balers, cotton harvesters, combine
harvesters and tractors.

 Orchard tractors

Price:

Force follows mainly two types of pricing strategy

1. Market Oriented pricing strategy: For sedans and trucks, market oriented pricing is
employed. This involves pricing as per market conditions such as competition, demand,
consumer perception and other variables.

2. Premium pricing strategy: For its luxury line of products under Lincoln automobiles, Force
uses this strategy to set higher prices.

Apart from these the pricing strategy in the marketing mix of Force also includes prices of tractor
specific to segments, geographies, features and competitors.

27
Place:

Force has set up its manufacturing plants at various locations around the world which helps in
strengthening its wide distribution network. Mainly include four distribution channels i.e.
Dealerships Force’s dealership network represents its brand at retail as it provides direct access
to the customers and plays vital role in attracting and retaining them. Most of its products are
made available through this channel and contributes to majority of the sales revenue. Auto parts
stores and Website: the accessories, parts and lifelong services are provided through the
showrooms, third party stores or Forces parts website.

Promotion:

Force adopts very competitive promotional strategies of promoting its goods and services
through almost all the conventional channels available. The main activities include in the
promotional strategies under marketing mix can be elaborated as below:

Advertising: Force promotes the goods and services through televisions, print media like
magazines and newspapers and online channels. It also exhibits the products at various events
and malls.

Sales Promotion: Through discounts, special offers and trade-ins, the company adopts the
technique of retaining the loyal customers and also to tap the potential customers.

Public relations: Various corporate social responsibility programs build a positive image for the
company and portray the company’s concern towards community and environment.

28
 CHAPTER-III

HUMAN RESOURCE MANAGEMENT POLICIES

1.MAHINDRA& MAHINDRA:

Performance Appraisals:

1. The company follows MBR (Management by Results) Module Ethical Issues in Functions of
HRM & PMS (Performance Management System) wherein actual results are measured against
set goals.

2. Transparent communication & one-to-one discussions about performance and achievements

are done.

Recruitment and selection:

A. Exit Interviews:

1. In order to maintain good relations with an ex- employee, the HR department follows up with
him after 2-3 months of his exit to check on him.

B. Internal Recruitments:

1. Internal company website for Internal Recruitments.

2. Employee has to first inform his immediate superior Ethical Issues in Functions of HRM &
only after that can he apply on the internal website

3. Only the best candidate with the right fit is selected. Favoritism is not encouraged at all.

Training and development:

The company signed a memorandum of understanding (MoU) with ASDC, under which the
partners will deploy their core competencies to offer skill development training program, to
generate employment in the automotive sector, Mahindra & Mahindra Ltd said in a

29
statement."This partnership will facilitate employable skill training to the youth and prepare
them for the various functions of the automotive sector, from sales, service to manufacturing.

While ASDC will impart skill trainings by partnering with Mahindra and leveraging the latter's
existing training facilities, Mahindra will provide training aids, including course curriculum
based on ASDC Standards and further assist trainees to find suitable placements.
Compensation:
The compensation is differs for the employees according to their positions. The salaries depend
up on the performance.

2.FORCE MOTORS:

Training and Development:

Purpose to create bond between incumbent and organizational environment. As new employees
enter an organization, they find themselves thrown into a new environment and a confused state.
This is where induction training can help familiarize them with the organization‘s ways and
culture. There is always a first time and it is never easy. This is so true to new employees who set
foot into a new organization with expectations and hopes. It is up to the management to make
them feel at home as soon as possible. The tool that the management uses to achieve this is the
induction training. An effective induction programme is more than merely introducing new
employees to their roles and co-workers. It is a strategy that is implemented by a company to
help the new employee fit into their new organization, team and position..

Induction Training

To make aware of the following Local departmental amenities, catering, washrooms, etc. Local
security, time and attendance, sickness, absenteeism, holidays, etc. Local emergency procedures
Local departmental structure Department tour Departmental functions and aims Team and
management People and personalities Related departments and functions How the department
actually works and relates to others.

Recruitment:
 Internal and external recruitment.

30
  Company’s official website.
 Job portals.
Selection:
 Online test.
 Initial interview.
 Panel interview or group interview.
Performance appraisal:
Force uses a grading system that evaluate employee on a curve, called Performance Management
Process.
Employees are classified into three categories-
 Top achiever
 Achiever and
 Improvement required.
Importantly, those employees under third category, will continue to receive coaching and
counseling to improve their performance.
Compensation:
90 % fixed and variable salary & 10 % spent on various kinds of benefits like Medical, dental
and prescription drug plan for employees and dependents.
 Paid vacation with Flex account ( to purchase additional vacation time)
 Flex hours enables employees to determine their work hour (starting and ending time
within an 8 hour day).
 Pension benefits.
 Vehicle purchase plan at dealer invoice cost.
 Savings and Stock Investment Program.

31
3.JOHN DEERE:

Job Requirements:

1. Bachelor’s degree in Human Resources, Business, Communications or related field

2. 1+ years experience and/or internship in a related field preferred

3. Strong verbal and written communication skills

4. Strong customer service skills

Performance appraisal:

John deere tractor follow appraisal system of annual basis starting from the month of April till
March has been extremely effective for the employees who are working in John deere tractor. It
also has started half yearly appraisal system keeping in mind the dynamic behavior of the
industry. System of quarterly appraisals introduced for employees of the company who deciate
from their goals.

Training and Development:

We are committed to building the competences of our employees and improving their
performance through training and development. Our focus is on identifying gaps in our
employees’ competencies and preparing employees for changes in competitive environments, as
well as to meet organizational challenges.

Recruitment and selection:

A) Recruitment sources

1. Engineering colleges in India

2. Talent pool vendor/ancillary companies

3. Person with relevant prior work experience.

32
B) Communication channels

1. Placement cell. Engineering institutes

2. Ads in print media

3. Job portals

4. EICHER TRACTORS:

Recruitment and selection:

Sources of Recruitment:

INTERNAL SOURCES EXTERNAL SOURCES:

Present employees Campus Recruitment Retired employees Private employment

consultant Dependent of present Data Banks Employee Referrals Casual Applicants Trade
Unions Walk-ins Head Hunting Mergers & Acquisitions E-Recruitment It helps in translating
Business Strategy into people requirements. A combination of internal recruitment, campus
recruitment, and executive search is leveraged to meet up to the changing needs of the
organization.

Selection:

It is one area where the interference of external factors is minimal. Hence the HR department can
use its discretion in framing its selection policy and using various selection tools for the best
result.

Training and Development:

The needs of individual are objectively identified & necessary interventions are planned for
identified groups, which get rolled out in a phased manner through training calendar. The
training and development program is charted out to cover the number of trainees, existing staff.
The programs also cover the identification of resource personnel for conducting development
program, frequency of training and development programs and budget allocation. Training and

33
development programs can also be designed depending upon job requirement and analysis.
Selection of trainees is also facilitated by job analysis. The company has a strong focus on
manpower training according to their requirements. The internal training department aims at
improving the skill sets relevant to the work profile of employees. This includes improving
communication, Different skills, E-mail programming, Operation systems. The design of the
training program can be undertaken only when a clear training objective has been produced. The
training objective clears what goal has to be achieved by the end of training program i.e. what
the trainees are expected to be able to do at the end of their training. Training objectives assist
trainers to design the training program.

Compensation:

Eicher motors offers compensation packages on par or higher than the industry standards based
on the technical skills and experience of the candidates.

Performance appraisal:

Eicher motors follow appraisal system of annual basis starting from the month of April till
March has been extremely effective for the employees who are working in Eicher motors. It also
has started half yearly appraisal system keeping in mind the dynamic behavior of the industry.
System of quarterly appraisals introduced for employees of the company who deciate from their
goals.

34
5. SWARAJ TRACTORS:

Recruitment and Selection:

Sources of Recruitment:

 Campus Recruitment Selected empaneled campuses

 Lateral Recruitment Consultants Job sites Employee referrals

Recruitment Process:

The HR recruitment process can be divided into three stages:

1. Manpower Budget

2. Recruitment

3. Selection

Training and Development:

Swaraj adopts Industrial Training Institutes (ITIs) in partnership with the state governments for
their overall up gradation. The key objective of the program is to improve quality of training and
upgrade technical skills of students in order to make them industry ready and enhance their
employability. Key elements of the skill training program are as follows:.

infrastructure Development:

The program includes infrastructure improvements such as repair of building,

machines, and workshop tools, provision of furniture and teaching aids.

Industry Connect:

The students and faculty members are invited to factory and provided industry exposure. In
addition, guest speakers from industry are invited to the Institute to provide guidance to the
students and impart industry specific training

35
Performance appraisal:

Swaraj tractor to change gear on performance appraisal 100% link between pay, productivity and
renewing its efforts at cutting costs and improving productivity. swaraj ltd. has drawn up to pay
packets for all its executives and managers.

Swaraj ltd adopts 360-degree appraisal system. It introduced a unique 360-degree feedback
system, starting with its senior leadership. The new system has been co-developed with Ernst and
young and has been put in place recently. The employee is rated not just by his superiors, but
also by his peers and subordinates.

Compensation:

Compensation is made according to their levels. The salary is made according to the
performance which is evaluated by superiors, peers and subordinates.

36
 CHAPTER - IV

FINANCIAL ANALYSIS

1. Current Ratios:

Current Ratio = Total current assets/Total current liabilities

Table No:1 Current Ratio of Tractor companies from 2012 to 2016

COMPANY 2016 2015 2014 2013 2012

Swaraj 1.53 1.56 1.68 1.40 1.39

Mahindra 1.03 1.05 1.19 1.02 0.99
Eicher 0.98 2.73 1.30 1.65 1.98
Force farm 1.69 1.67 1.71 1.78 2.59
John deere 0.63 0.60 0.66 0.69 0.88
Fig No:1Graphical representation of Current Ratio.

2.5

2 2016
2015
1.5
2014

1 2013
2012
0.5

0
Swaraj Mahindra Eicher Force farm John deere

INTERPRETATION:

 The above graph represents X-axis as years & Y-axis as Ratios.

 This graph shows the comparison of Current ratio between five companies from2012 to 2016
 John deere is having lowest and eicher is having the highest current ratio among the ratio

37
2. fixed assets ratio:

Fixed assetsratio =fixed asset/capital employed

capital employed=total asset-current liability

Table No:fixed asset ratioof Tractor companies from 2012 to 2016

COMPANY 2016 2015 2014 2013 2012

Swaraj 0.52 0.45 0.46 0.48 0.49

Mahindra 0.74 0.45 0.60 0.59 0.62
Eicher 0.43 0.40 0.44 0.36 0.30
Force farm 0.63 0.63 0.66 0.64 0.42
John deere 1.50 1.54 1.52 1.58 1.53

Fig No:2Graphical representation of fixed assert ratio.

1.8

1.6

1.4

1.2 2016
1 2015

0.8 2014

0.6 2013
2012
0.4

0.2

0
Swaraj Mahindra Eicher Force farm John deere

INTERPRETATION:

 The above graph represents X-axis as years & Y-axis as Ratios.

 This graph shows the comparison offixed assert ratio between five companies from2012 to
2016
 Eicher is having lowest and john deere is having the highest fixed assert ratioamong the ratio

38
3. Gross Profit Ratio:

Gross Profit Ratio = Gross profit/Net sales×100

Table No:3 Gross Profit Ratio of tractor companies from 2012 to 2016
COMPANY 2016 2015 2014 2013 2012

Swaraj 5.90 4.43 2.02 4.91 6.26

Mahindra 11.45 11.0 12.0 14.1 12.4
Eicher 28.7 21.2 25.9 21.4 16.6
Force farm 8.22 5.35 3.13 0.99 2.53
John deere 13.9 1.39 19.3 25.1 19.3

Fig No:3Graphical representation Gross Profit Ratio.

35

30

25
2016
20 2015
2014
15
2013
10 2012

0
Swaraj Mahindra Eicher Force farm John deere

INTERPRETATION:

 The above graph represents X-axis as years & Y-axis as Ratios.

 This graph shows the comparison ofbetweenfiveGross Profit Ratio companies from2012 to
2016.
 Force farm is having lowest and Eicher is having the highest Gross Profit Ratioamong the
ratios

39
4. Net Profit Ratios:

Net Profit Ratios = Net profit/sales×100

Table No:4net profit Ratio of Tractor companies from 2012 to 2016

COMPANY 2016 2015 2014 2013 2012

Swaraj 4.4 3.36 1.98 3.6 4.07

Mahindra 8.53 8.58 10.3 9.12 9.86

Eicher 19.9 18.7 18.5 16.4 13.8

Force farm 5.91 4.34 3.89 0.74 4.2

John deere 14.5 14.0 15.2 19.2 14.8

Fig No:4Graphical representation of net profit Ratio of companies

25

20

2016
15
2015
2014
10
2013
2012
5

0
Swaraj Mahindra Eicher Force farm John deere

INTERPRETATION:

 The above graph represents X-axis as years & Y-axis as Ratios.

 This graph shows the comparison ofbetween five of net profitRatiocompanies from2012 to
2016.
 Swaraj is having lowest and Eicher is having the highest Assets TurnoverRatio among the
ratio

40
5. Debt EquityRatios:
Debt Equty Ratio = long torm liabilities/shareholder funds

Table No:5DetEqutyRatio of tractor companies from 2012 to 2016

COMPANY 2016 2015 2014 2013 2012

Swaraj 0.3 0.3 0.3 0.4 0.6

Mahindra 0.4 0.5 0.3 0.2 0.1
Eicher 0.02 0.05 0.03 0.04 0.05
Force farm 0.02 0.03 0.03 0.03 0.02
John deere 0.5 0.4 0.3 0.2 0.6

Fig No:5Graphical representation of debt equtyRatio of company

0.7

0.6

0.5
2016
0.4 2015
2014
0.3
2013
0.2 2012

0.1

0
Swaraj Mahindra Eicher Force farm John deere

INTERPRETATION:

 The above graph represents X-axis as years & Y-axis as Ratios.

 This graph shows the comparison ofdebtequtyRatiobetween five companies from2012 to
2016.
 Force farm is having lowest and john deere is having the highest Return on
AssetsRatioamong the ratio

41
Findings:

 There are a wide range of jobs available in the tractor industry in 2016. With the number
of vehicles available on the road today, the need and requirement for people who can fix
these machines is fast increasing.
 Allowing unrestricted foreign direct investment lead to increase in competition in the
domestic market hence making better vehicles available at affordable prices
 Increased affordability, heightened demand in the agriculture segment and the surging
income of the Indian population
 The Government technology modernization fund is concentrating on establishing India as
an tractor-manufacturing hub.
 John deere Company has lowest current ratio in the year 2012.
 Eicher Company has highest current ratio in the year 2015.
 Johndeere Company has highest fixed asset ratio in the year 2013.
 eicher Company has lowest fixed asset ratio in the year 2012.
 Eicher Company has highest gross profit ratio in the year 2016.
 Force farm Company has lowest gross profit ratio in the year 2013.
 eicher Company has highest net profit ratio in the year 2016.
 force Company has lowest net profit ratio in the year 2013.
 Swaraj and johndeere Company has highest debt equity ratio in the year 2012.
 Force and eicher Company has lowest debt eqity ratio in the year 2016.
 The findings of the study are furnished in the following sequence and are given
chronologically based on the order of objectives of the study.

42
Suggestions:

The objective of every firm is to preserve liquidity and maximize the profit to get better return to
its stakeholders and increase the value of firm. Financial performance has thus become a basic
and broad aspect of performance of a corporate entity. The utilization of capital and profitability
of the selected tractor companies in India during the period under the study are satisfactory.

There are few suggestions that could be implemented by the firm to attain their objectives.

 The company is suggested to pay more attention on expenses as well as on policy of

investment pattern on fixed assets, inventory and receivables. If they control on these the
profit and profitability of the firm will be improved.
 Most of the companies have less growth in fixed asset ratio, they may go for
modernization and innovations in their products which require more funds in the future.
 . The companies need to improve these qualities to increase the growth rate of sales and
maintain expected return by the shareholders.
 Most of the companies have less growth in debt equity mix; they may go for
modernization and innovations in their products which require more funds in the future.
The judicious mix of debt and equity in the capital structure will improve the profitability
of the firms under the study.
 Indian tractor industry needs to develop a proactive culture with regard to investments in
research and development rather than responsive culture. This would help the industry to
understand the complexities of vehicle users and bring in product innovation through
changes in design and vehicle engineering.
 The government has to contact with companies and provide subsidies to farmers for the
modranisation of agriculture

43
Conclusion:

Globalization will continue increasingly in the tractor industry

The tractor industry in Turkey is in a position where it canproduce at global standards.It had
developed its competitive capabilities, and a structure that can apply common marketing
strategies with licensing countries.

Having a competitive structure, having the power to manufacture quality and consistent products
with new technologies, and most effectively, having the cost-price advantage, puts Turkey in a
position of being an important manufacturing base and an important market, from the perspective
of the global automotive.

The Indian tractor industry has a prominent future in India. Apart from meeting the advancing
domestic demands, it is penetrating the international market too. As there was largest farming
land in india there was was high demand for the industry and modranisation of technology may
increase demand. Favored with various benefits such as globally competitive auto-ancillary
industry; production of steel at lowest cost; inexpensive and high skill manpower; entrenched
testing and R & D centers etc., the industry provide immense investment and employment
opportunities

44
 BIBILIOGRAPHY

Books:

 Philip kotler and Kevin lane Keller, marketing management, 12th edition.
 Gary Dessler, human resource management, 10th edition.
 S.P. Jain and K.L. Narang, financial accounting analysis, 3rd edition.

Websites:

https://en.wikipedia.org/wiki/tractor_industry

https://enwikipedia.org/wiki/mahendra and mahendra_tractors

https://en.wikipedia.org/wiki/johndeerei

https://en.wikipedia.org/wiki/Mahindra_%26_Mahindra

https://en.wikipedia.org/wiki/swaraj_tractor_Company

https://en.wikipedia.org/wiki/Force_Motor_Company

http://www.marketing91.com/swot-analysis-of-tractor-industry/

http://www.mbaskool.com/marketing-mix/products/16981-force-motors.html

http://www.mbaskool.com/marketing-mix/products/16974-swaraj.html

http://www.mbaskool.com/marketing-mix/products/16997-mahindra-and-mahindra.html

http://www.mbaskool.com/marketing-mix/products/16890-eicher.html

http://www.mbaskool.com/marketing-mix/products/16859-force.html

https://career012.successfactors.eu/career?company=johndeereindiaP

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