The t ractor indust ry in I ndia has developed over the years to become one of the largest tractor markets in the world. From just about 50,000 units in early eight ies the size of t ractor market in the count ry has grown up to over 200,000 units. Today indust ry comprises of 14 players, including 3 MNCs. The opportunit ies st ill are huge considering the low farm mechanizat ion levels in the count ry, when compared to other developed economies across the world. After a downturn during last 3-4 years, the indust ry is back on a growth path, which we believe would sustain in coming years as well. Key concern for the indust ry is its dependence on agricultural income in hands of farmers and the state of monsoon.

Case Study Punjab Tractors Limited Company History In 1965, Government of India research institute CMERI at Durgapur initiated design and development of Swaraj Tractor based on indigenous know how. In 1970, Punjab Government acquired the Swaraj tractor's design and established Punjab Tractors Limited (PTL). It was India's first large-scale totally indigenous project. The Tractors of PTL are very popular. The company exports Tractors to various countries including USA. The Swaraj Mazda Limited was promoted in 1983 by PTL in technical collaboration with Mazda Motor Corporation and Sumitomo Corporation, Japan for the manufacturing of Light Commercial Vehicles (LCV). Along with Swaraj Automotive Limited (engaged in manufacturing

The Company entered into technical collaboration agreement with Komatsu Forklift Co. (iii) Setting up separate facilities for R&D and spare parts y . New Delhi.The Company embarked on an expansion programme involving an outlay ofRs 36 crores during the next 2-3 years which comprises the following: (i) Raising tractor capacity to 22. 1989 . Ltd. The company launched a single-cylinder variant of the 25-hp model as well as a double-cylinder model in the 35-hp class while it launched a 48-hp model in October. The manufacturing is located at SAS Nagar in Ropar. Haryana. The Company was promoted by Punjab State Industrial Development Corporation Ltd. Product-design and customization have been the 2 pillar of Punjab Tractors' success. Asron Village of Nawanshahar District and Nabha of Patiala District. 1999. Durgapur and licensed through the National Research Development Corporation (NRDC).. harvester combines and tractors at Hoshiarpur. (ii) Raising capacities in the foundry and harvester combine divisions. The tractors are marketed under the brand name SWARAJ.The project is based on the know-how and technology developed by Central Technical Engineering Resereach Institute (CMERI). of Japan for the manufacture of diesel electric Komatsu forklifts.of automobile seats and recliners) and Swaraj Engines Limited (manufacturing of engines) Swaraj caters to the need of heavy vehicle far a large section of the population.The Company was incorporated on 27th June. PTL has introduced tractors based on indigenous technology and they have been extremely successful in the Indian markets. The company also has a strong distribution network in the northern market.000 nos. 1983 . The company also has manufacturing facilities for fork-lifts.. at Chandigarh. which is close to its Ropar plant. All the units are in Punjab.The company is the third-largest manufacturer of tractors in India and the market leader in the below-20 hp and above-50 hp tractor segments. Timeline: y 1970 .

Yash mahajan for another two years. Industrial Forklifts. Capacity 8000 M.PTL has posted a net profit of Rs.a. SWARAJ FOUNDRY DIVISION. Today PTL stands as a multi product multi location unit manufacturing Tractors. Mahindra & Mahindra expresses its interest to buy the stake in Punjab Tractors.000 units. castings 3. Earnst and Young etc. 2002 . Punjab Tractor's Board of Directors have re-inducted the company's vice chairman and managing director. Chhapar Cheri. Capacity of 300000 tractors p.Punjab Tractors is a leading player in the tractor industry with Swaraj brand name. additional equity capital and term loans. Agricultural Implements and Automotive castings. These plants set up at most economic outlays. SWARAJ TRACTORS DIVISION.y y y y y y (iv) Reinforcing market presence in key locations in the country. .000 tractors (in two-shift basis) by March 1999. with concept and the technology in the new plant matching global standards. Lazard India.The Company entered into a joint venture agreement with Swaraj Mazda Ltd.112. 2001 . Majri. 1997 .a. Punjab Tractors Limited consists of following divisions: 1. (SML) Mazda Motor Corporation and Sumitomo Corporation of Japan. 1999 .T.Punjab Tractors Ltd.The company has an installed capacity for 36. Harvester Combines. 1996 . Punjab Tractors Ltd has facinated expression of Interest from 21 merchant bankers including DSP Merill Lynch. SAS Nagar. 2000 . 2. SWARAJ COMBINE DIVISION. to expand its product range with six models by launching 3 more in different segments in next two years. Capacity of 300000 tractors p. PTL is actively participating in the industrial scene of Punjab through its group companies SWARAJ MAZDA LIMITED. SWARAJ ENGINES LIMITED AND SWARAJ AUTOMOTIVES LIMITED. All these companies are major players in their respective fields.The Company has recommended a bonus issue of two shares for every one share held. also represent the most productive tractor facilities in the country.52cr as against the same period of last year. And it is currently expanding it to 60. This expansion was to be financed through internal generation.

Kargil War and in the matters of community development.On the social front also. Escorts. Also the ranking has improved from 6th to 3rd.1% in 1983 to 15% in 2003. In the wake of Kargil conflict. The trends of market shares for the last 30 years are shown in the figure below. Competition within India: The major competitors for PTL in India are Mahindra & Mahindra Tractors. business associates and employees contributed a total of Rs. Eicher and HMT. 10551000 for Armed Forces Welfare Fund and a cheque of like amount handed over to army authorities. This is the sign of growing organization well on track to become the largest producers of tractors in India. . We can see that the market share of Swaraj tractors has increased from 9. Massey. PTL has always risen to the occasion and assumed the social responsibility by contributing to national causes like floods. the members.

.PROBLEMS FACED 2003 .1000cr reached the deadline for transfer of management control post-buyout. The disinvestment of Punjab Tractors has hit a roadblock with Financial Institutions refusing to accept the Punjab Government's request to amend the articles of association. Punjab Government winds up the offload of its controlling equity in Punjab Tractors.The disinvestment of Rs.

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