PROJECT REPORT

ON

ESCORTS CONSTRUCTION

EQUIPMENT LIMITED

Submitted by:

Bhawna
20220046

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Chaudhary Ranbir Singh University
Jind (126102)

ESCORTS CONSTRUCTION EQUIPMENT LIMITED

A
PROJECT REPORT

Submitted to

Chahudhary Ranbir Singh University

In Partial Fulfillment of

MASTERS OF BUSINESS
ADMINISTRATION
Submitted By
Bhawna
M.B.A Final III rd sem

ROLL NO. 20220046

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Chaudhary Ranbir Singh University

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 CONTENTS

Topics

 Acknowledgement 4

 History 5-9

 About The Company 10 - 11

 Mission, Vision, Objectives 12

 Background & Detailed Structure 13 - 15

 Management ( Key Peoples ) 16 - 25
 Quality Policy 22 - 24
 Functional Departments 25 - 30
 Major Products Offered 31 - 32

 International Market Of Escorts 33 - 38

 Operations Framework 39
 SWOT Analysis 40 - 41
 Main Competitors 42
 Conclusion 43
 Work Cited 44

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 ACKNOWLEDGEMENT

I would like to thank Dr. Rachna Shrivastava for providing summer

training which will certainly enhance my skills and knowledge and
explore me to dynamic managerial world.

I would like to my heartiest thank to the officers and staff of Escorts

Construction Equipment Limited who give me permission for this
project and give me need full guideline and support and co operation
for conducting the summer training and preparing this report.

The training procedure session has contributed to develop my

personality. I lean this fact in natural environment. This training
session give me opportunity to enhance professional skills and give
me a way for a success and achieving ambition in life.

I am sure that the reader will find this report useful to enhance their
knowledge in Escorts Groups & help them in various ways.

Bhawna

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 ORGANISATION HISTORY

The Escorts symbol means more than a seen by the eye. It has been prepared with
certain objective in mind and is symbolic in more then one way. The philosophy
behind Escorts and the „E‟ in the Escorts is “Enterprise”. The Hexagon is a
symbol of productivity, precision when interposed as a nut. It symbolizes a
craftsmanship, and mending productivity. The sprains superimposed on the
Hexagon represent the workers and the people of the Escorts. This forms the letter
„E‟ the first of Escorts a company even on the more changing unveiling the future.
The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and
Mr. Yudi Nanda, launched a small agency house, Escorts Agents Ltd. in Lahore.
Over the years, Escorts has surged ahead and evolved into one of India's largest
conglomerates. In this journey of six decades, Escorts has had the privilege of
being associated with some of the world leaders in the engineering manufacturing
space like Minneapolis Moline, Massey Ferguson, Goetze, Mahle, URSUS,
CEKOP, Ford Motor Company, J C Bamford Excavators, Yamaha, Claas,
Carraro, Lucky Goldstar, First Pacific Company, Hughes Communications,
Jeumont Schneider, Dynapac . These valued relationships be it technological or
marketing, are our highly cherished experiences treasures, which have helped us
inculcate best in class manufacturing practices and to emerge as a technologically
independent world class engineering organization.

1944 - Launch of Escorts (Agents) Ltd.

1948 - Pioneered farm mechanization in the country by launching Escorts

Agricultural Machines Limited, with a franchise from the U.S. based Minneapolis
Moline, for marketing tractors, implements, engines & other farm equipment.
Launch of Escorts (Agriculture and Machines) Ltd.

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 1949 - Franchise of Massey Ferguson tractors for northern India

1951 - Escorts established India‟s first private Institute of Farm Mechanisation at

Delhi.

1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged
to form Escorts Agents Pvt. Ltd.

1954 - 1st industrial venture of Escorts to manufacture piston rings in

collaboration with Goetze of Germany, in an era when joint ventures of Indian
firms with foreign companies were virtually unheard of.

1958 - Started importing Massey Ferguson tractors from Yugoslavia for

marketing the same in India.

1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon,

Escorts became the largest producer of piston assemblies in India.

1960 - Set up of Escorts Limited

1961- Setting up of manufacturing base at Faridabad for manufacture of tractors

in collaboration with URSUS of Poland and 50% indigenous components. Launch
of Escort brand of tractors. Collaboration with CEKOP of Poland for manufacture
of motorcycles and scooters. Escorts moves into high gear by nurturing the two
wheeler culture. The first Rajdoot motorcycle rolls off the assembly line.

1969 - Escorts Tractors Limited was born. A technical and financial joint venture
with the global giant Ford Motor Company, USA, to manufacture Ford tractors in
India. The years ahead saw Escorts grow as the largest tractor manufacturer in
India.

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 Escorts Institute of Farm Mechanisation (EIFM) established at Bangalore.

Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial

democracy comes into being.

1971 - 1st February, the first tractor FORD 3000 rolled out of the factory.

Escorts diversifies and starts manufacturing construction equipment.

1974 - Crossing national boundaries, Escorts exports for the first time. After
winning a global tender, 400 tractors were exported to Afghanistan, which was
perhaps the world's largest ever airlift of tractors.

1976 - FORD 3600, an advancement in Farm Mechanisation launched. Trial

production of in-plant manufacturing of engine parts (Block & Head).

1977 - Escorts enters the world of self-developed technology by setting up its first
independent R&D Center. Escorts Scientific Research Centre marked its
beginning at Faridabad by developing its own Engines for E-27 and E-37. Due to
constant technology absorption, indigenisation level touched 72% for FORD
tractors. 2nd plant at Bangalore for manufacturing piston assemblies was set up.

1979 - Collaboration with JCB Excavators Ltd., UK for manufacture of

excavators.

1980 - Foray into healthcare, Escorts Hospital and Research Center set up in
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 Faridabad.

1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research and

development centre to spearhead newer breakthroughs in Farm Mechanisation and
to maintain industry leadership. Line concept introduced for engine block
machining. 11,000 ton floating dry-dock Escorts I launched.

1984 - JV Escorts - Yamaha to manufacture motorcycles

1984 - Signing of agreement with the Japanese bike giant Yamaha to manufacture
motorcycles with Yamaha technology. Collaboration with Jeumont Schneider of
France to manufacture EPABX systems Collaboration with Dynapac of Sweden to
manufacture vibratory road compactors

1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).

1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac
care facility launched in New Delhi.
1989 - Joint Venture with Claas of Germany to manufacture harvester combines.

1990-91 - First Public Issue in February 1991, over-subscribed four times. Shares
listed on Delhi and Bombay Stock Exchanges.
1993 - FORD 3620 tractor launched.
1996 - Disengagement of joint venture collaboration with New Holland and
launch of FARMTRAC Tractor.

1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of
transmission and axles.

Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile
Communications.
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 1998 - POWERTRAC series of tractors launched.

MoU was signed with Long Manufacturing Company, USA for setting up a
Joint Venture in USA.

1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for
assembly, manufacturing and marketing of Farm Machinery.

2004 - Divested Escotel Mobile Telecommunications to Idea Cellular

TS16949 certification for Agri Machinery Group.

2005 – Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis
Healthcare.

2006 - Divested in Carraro India Ltd.

Set up new manufacturing facility in Rudrapur for manufacture of new range of

railway equipment

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 ABOUT THE COMPANY

The Escorts Group, is among India's leading engineering conglomerates

operating in the high growth sectors of agri-machinery, construction & material
handling equipment, railway equipment and auto components.

Having pioneered farm mechanization in the country, Escorts has played a pivotal
role in the agricultural growth of India for over five decades. One of the leading
tractor manufacturers of the country, Escorts offers a comprehensive range of tractors,
more than 45 variants starting from 25 to 80 HP. Escort, Farmtrac and Powertrac are
the widely accepted and preferred brands of tractors from the house of Escorts.

A leading material handling and construction equipment manufacturer, we

manufacture and market a diverse range of equipment like cranes, loaders, vibratory
rollers and forklifts. Escorts today is the world's largest Pick 'n' Carry Hydraulic
Mobile Crane manufacturer.

Escorts has been a major player in the railway equipment business in India for nearly
five decades. Our product offering includes brakes, couplers, shock absorbers, rail
fastening systems, composite brake blocks and vulcanized rubber parts.

In the auto components segment, Escorts is a leading manufacturer of auto suspension

products including shock absorbers and telescopic front forks. Over the years, with
continuous development and improvement in manufacturing technology and design,
new reliable products have been introduced.

Throughout the evolution of Escorts, technology has always been its greatest ally for
growth. In the over six decades of our inception, Escorts has been much more than
just being one of India's largest engineering companies. It has been a harbinger of

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new technology, a prime mover on the industrial front, at every stage introducing
products and technologies that helped take the country forward in key growth areas.
Over a million tractors and over 16,000 construction and material handling
equipment that have rolled out from the facilities of Escorts, complemented
by a highly satisfied customer base, are testimony to the manufacturing excellence of
Escorts. Following the globally accepted best manufacturing practices with relentless
focus on research and development, Escorts is today in the league of premier
corporate entities in India.

Technological and business collaboration with world leaders over the years, Globally
competitive indigenous engineering capabilities, over 1600 sales and service outlets
and footprints in over 40 countries have been instrumental in making Escorts the
Indian multinational. At a time when the world is looking at India as an outsourcing
destination, Escorts is rightly placed to be the dependable outsourcing partner of
world's leading engineering corporations looking at outsourcing manufacture of
engines, transmissions, gears, hydraulics, implements and attachments to tractors, and
shock absorbers for heavy trailers.

In today's Global Market Place, Escorts is fast on the path of an internal

transformation, which will help it to be a key driver of manufacturing excellence in
the global arena. For this we are going beyond just adhering to prevailing norms, we
are setting our own standards and relentlessly pursuing them to achieve our desired
benchmarks of excellence.

The Escorts symbol means more than a seen by the eye. It has been prepared with
certain objective in mind and is symbolic in more then one way. The philosophy
behind Escorts and the „E‟ in the Escorts is “Enterprise”. The Hexagon is a symbol of
productivity, precision when interposed as a nut. It symbolizes a craftsmanship, and
mending productivity. The sprains superimposed on the Hexagon represent the
workers and the people of the Escorts. This forms the letter „E‟ the first of Escorts a
company even on the more changing unveiling the future.
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 ESCORTS AGRI MACHINERY GROUP

VISSION

We shall strive to be the Numero Uno in the Indian tractor industry and top five
tractor manufacturers in the world. We shall continuously strive to meet the ever
rising expectations of our valued customers at the lowest internal cost. We shall
aim to offer the farming community a range of innovative products and services,
which shall enable them to improve their productivity and competitiveness. We
shall achieve a turnover of RS. 20 Billion And profit of RS. 2 Billion By the year
2000. Transcending national boundaries, we shall strive to attain exports of one
tenth of our total tractor production by the year 2000.

MISSION

We will achieve leadership in market share & profitability in the domestic tractor
market by the year 2009-2010 and shall be the world's largest supplier of sub 100
HP tractors. We shall proactively contribute to the prosperity of the rural economy
by defining a larger role for ourselves in the Food and Agriculture sector.

OBJECTIVE

ESCORTS LIMITED are the holding company of Escorts groups. Post restructuring,
Agri Machinery or tractors has become the focus area of operations. Other businesses
like I.T., construction equipment are controlled through subsidiaries and joint
ventures.

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 BUSINESS

Background

In 1960, Escorts set up the strategic Agri Machinery Group (AMG) to venture into
tractors. In 1965, we rolled out our first batch of tractors under the brand name of
Escort.

In 1969 a separate company, Escorts Tractors Ltd., was established with equity
participation of Ford Motor Co., Basildon, UK for the manufacture of Ford
agricultural tractors in India. In the year 1996 Escorts Tractors Ltd. formally merged
with the parent company, Escorts Ltd. Since inception, we have manufactured over 1
million tractors.

Technologies

 Escorts AMG has three recognized and well-accepted tractor brands, which
are on distinct and separate technology platforms.

 Farmtrac: World Class Premium tractors, with single reduction and epicyclic
reduction transmissions from 34 to 75 HP.

 Powertrac: Utility and Value-for-money tractors, offering straight-axle and

hub-reduction tractors from 34 to 55 HP. India‟s No.1 economy range –
engineered to give spectacular diesel economy.

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  Escort: Economy tractors having hub-reduction transmission and twin-
cylinder engines from 27 to 35 HP. Pioneering brand of tractors introduced by
Escorts with unbeatable advantages.

International Subsidiaries

 Escorts AMG has one international subsidiary.

 Farmtrac Tractors Europe Sp.z o.o.in Poland.

 We now cater to 41 countries.

Fuctional Excellence

 Manufacturing

 Quality Assurance

 Materials Management

 Sales & Marketing

 Knowledge Management

 Finance

 Human Resources

 Information Technology

 Beyond manufacture, Escorts has made substantial investments towards the

modernisation of farm technology. The Escorts Institute of Farm
Mechanisation (EIFM) at Bangalore is a unique center where training is
imparted in operation, maintenance and repair of farm machinery. It is among
the few institutions of its kind in the world. Its programs are aimed at
encouraging customers, dealers, engineers, mechanics as well as the field staff

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 of Escorts, towards meeting its objective of enhancing agricultural
productivity and improving quality of life in rural India.

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 MANAGEMENT

Mr. Rajan Nanda

Chairman

An alumnus of Doon School, Dehradun, Mr. Rajan Nanda took

over as Chairman of Escorts Group in the year 1994. That was
the time when the Indian economy had begun to burgeon as a
result of liberalization. The task before him was to prepare
Escorts Group for the emerging competitive, globalised business
environment and steer it to greater heights. Displaying vision and
leadership qualities, Mr. Nanda undertook a major restructuring
programme to give sharper focus to the Group's businesses. Under his stewardship the
Escorts Group today is moving ahead in the high growth areas of agri machinery,
construction equipment, railway equipment and auto components.
Mr. Nanda is an active member of several apex trade and industry bodies. As member
of the CII National Council he has served as Chairman of its Agriculture Committee
in the past years. He played a pivotal role in promoting the cause of Indian agriculture
and his endeavours resulted in the Government announcing the long-awaited National
Agriculture policy.

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Mr. Nikhil Nanda
Joint Managing Director

Mr. Nikhil Nanda is an alumnus of Wharton Business School,

Philadelphia. Having graduated in Business Administration in
1995, he majored in Management and Marketing, before
undergoing professional training with JC Bamford Excavators
Ltd., U.K.

He is a member on the Board of most Group companies since

1997 and has the overall responsibility for managing the Group's
agri, construction and engineering businesses. Combining contemporary management
techniques with real life practical approach, Mr. Nikhil Nanda has been responsible
for driving the business growth initiatives of the Group to strategically position it in
the global arena.

Mr. Nanda is also among the five Indians selected as the Global Leaders of Tomorrow
for the year 2001 by the World Economic Forum, Geneva.

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Mr. S. Sridhar
CEO – Agri Machinery Group

Mr. S Sridhar is an Agricultural Engineer and has done Post

Graduate Diploma in Business Management from Symbiosis
Institute of Business Management – Pune. He has over 26 years of
experience in Auto (Tractor and Bi-Wheeler) Industry in the areas of
Sales & Marketing, Plant Operations, Product Planning and
Strategies. In his previous assignment, Mr. Sridhar was with Bajaj Auto as the
President of their Motorcycle Business. In the long span of more than two and half
decades, he has worked with companies like Bajaj, TVS Suzuko and Mahindra.

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Mr. Kanwal Kishore Vij
ED & CEO – Escorts Construction Equipment Limited (ECEL)

Mr. Kanwal Kishore Vij is a Mechanical Engineer and has studied

advanced courses in Marketing and Management from Harvard, IIM
(A) and Manila. He has over 26 years of experience in the
Automobile/Engineering industry and has worked with leading
companies including Eicher Group, Baxy Motors (Div. of
Continental Engines Ltd.) and Vege Intermotor B.V. Netherlands. Till recently, he
was holding the position of CEO & Director, Vege Intermotor B.V. Netherlands. At
Escorts, Mr Vij is responsible for driving the business growth of ECEL and to
maintain its dominant position in the Construction Equipment segment.

Mr. Lalit K Pahwa

CEO, Auto Products Division

An alumni of Symbiosis Institute of Business Management Pune, he

holds the Bachelor of Engineering (Mechanical) from Government
Engineering College, Jabalpur. Mr. Pahwa has over 14 years of
experience as a successful leader and has shouldered different
responsibilities as CEO and MD of Engineering, Manufacturing and automation
businesses. Mr. Pahwa has vast experience in identifying and executing M&As, JVs
and business alliances as a part of growth and turn around strategies for midsized
Indian and global companies.

At Escorts, Mr. Pahwa will have an overall responsibility to drive growth and
profitability of the Auto Suspension Products Business and will lead the teams in
enhancing the product and technology programs.

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Mr. Vikram Singhal
ED & Business Head – Engineering Division

A Mechanical Engineer by profession, Mr. Vikram Singhal has got

around 30 years of rich and varied experience in business re-
engineering, sales & marketing operations, international business,
manufacturing operations, turnaround and conceptualization and
execution of strategic initiatives. At Escorts, Mr. Singhal is
responsible for business operations and will lead by building a strategic business
approach to move up the revenue chain and create value.

Mr. G.B. Mathur

EVP - Law & Company Secretary

Has considerable experience in Secretarial and Legal matters.

Having joined Escorts in 1993, Mr. Mathur is responsible for all
Company law related matters and is also the custodian of the
shareholder related matters. Prior to joining Escorts he was the
Company Secretary at Chambal Fertilizers & Chemicals Ltd.

Mr. O K Balraj
EVP & Group CFO

A Chartered Accountant by profession, certified under the Indian

Institute of Bankers, London, with an advanced degree/ diploma
from Harvard University on Project Finance, Mr. O K Balraj has

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over 28 years of rich and valued experience in different facets of financial operations
and executive management. Prior to joining Escorts, he was working as Group
Director (Finance) at NSL Group where he was responsible for dealing with banks
and financial institutions for raising capital for fund expansion projects, follow-up of
new investments for formulating strategic business plan.

He has also worked at senior positions in reputed organizations like Goghenheim

Infrastructure Fund, New York, Essar Group, IDFC, ANZ Grindlays and Tata Group.

Mr. Ishan Mehta

EVP - HR & ER

An alumnus of Xavier‟s Labour Research Institute, Jamshedpur

(XLRI), Mr. Ishan Mehta has got more than 30 years of experience
in aligning HR/ER strategies to business, enhancing organizational
effectiveness and work place improvement.

Mr. Mehta who started his career with DCM Limited, has worked with companies
like Ballarpur industries, Eicher Group and East India Hotels (EIH) in senior level
assignments. Prior to joining Escorts Group as EVP – HR&ER, Mr. Mehta was
steering Human Resources of Emaar MGF as Director HR.

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 QUALITY POLICY

Over six decades back two young men set out on a journey together armed with little
beyond intelligence, business acumen and determination and dreams aplenty. They
believed that India could only achieve total freedom with a breakthrough in the field
of agriculture and mechanization would have to rule the fields. Their youthful
enthusiasm had kindled the hope that one day they would make a mark of their own.
They were in fact writing the first chapter of what has come to be widely recognised
as one of the greatest success stories in Indian industry.

Escorts came into being with a vision. A vision that eschewed easy paths to
profitability, and sought instead for ways to make a contribution. A vision that led
two young brothers, Yudi and Hari Nanda, to branch out of their family's prospering
transport business and institute ventures that were to become the foundations of
Escorts Limited. On 17th October 1944, Escorts Agents Limited was born at Lahore
(now in Pakistan) with Mr. Yudi Nanda as Managing Director and Mr. Hari Nanda as
Chairman. It was a trendsetting marketing house driven by the same business
philosophy, which had given their family enterprise an unrivalled reputation:
customer concern. Not long afterwards, this driving ambition to go beyond the
expected led Hari Nanda to the first of his many successful business insights - the
discovery of the great business potential that lay in India's villages. This led to the
launch, in 1948, of Escorts (Agriculture and Machines) Ltd., with Yudi Nanda as
Director. Though separate business entities then, both companies had two great
strengths in common: the dynamic Nanda brothers and the unifying force of the name
they gave their companies; Escorts, literally 'escorting' their products and services to
the customer while most other businessmen were just selling.

Tragically, Mr. Yudi Nanda died in an accident in 1952 - but his spirit remained
embedded in the foundations of the company. Mr. H P Nanda then took on the mantle
to realise the dreams which he had always seen with his brother.

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Escorts (Agents) Ltd., and Escorts (Agriculture and Machines) Ltd. merged in 1953 to
create a single entity -Escorts Agents Pvt Ltd. Having initially started with a franchise
for Westinghouse domestic appliances, by this time the Company had already
expanded its marketing and service operations, representing internationally known
German and American organisations such as MAN, AEG, Haniel & Leug, Knorr
Bremse, MIAG and BMA for sophisticated electrical and mechanical engineering
equipment and Minneapolis Moline and Wisconsin for agricultural tractors,
implements and engines. Escorts made a major thrust into the agricultural arena by
taking on the marketing and service franchise for Massey Ferguson tractors in
Northern India, which soon comprised 75% of MF's all-India sales - a signal tribute to
Escorts' inherent strengths. Its first industrial venture came up in 1954, in partnership
with Goetzewerke of Germany for the manufacture of piston rings and cylinder liners
- followed by production of pistons in collaboration with MAHLE, also of Germany,
in 1960. The company's incorporation in its present name, Escorts Limited, was
effected on 18th January, 1960. Escorts' next major industrial activity was the
assembly of tractors in 1961 in technical cooperation with URSUS of Poland.
Subsequently this led to the manufacture of the country's first indigenous tractors
under Escorts' own brand name, which were to play a pivotal role in the Green
Revolution. This went on to lay the foundations that even today are the Company's
core strengths -relevant, world-standard technology through strategic international
alliances; a broadbased marketing and service network yet unrivalled; powerful
symbiotic relationships with suppliers and dealers; and above all, the crusade to make
a difference.

Beyond the growth of the organisation, these principles have ensured that Mr. H. P.
Nanda's contribution to the cause of industry and the consumer will endure. He
pioneered the revolutionary concept of 'interdependence' between ancillary and large
industries, institutionalising vendor development and in the process building
Faridabad and the entire belt of townships in the region. He introduced the discipline
of service going before marketing, reassuring the customer that Escorts would stay
with them, that they were here for the long run. He built lasting alliances with an
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array of the world's most respected names in tractors, industrial equipment, two-
wheelers, construction equipment and telecommunications. Going further, he created
institutions devoted to value engineering and training, not only as investments in the
company's future but also as catalysts for the enhancement of Indian industry as a
whole the Escorts R&D Centre and the unique Escorts Institute of Farm
Mechanisation. His concern extended to the society in which he worked, and he
manifested it by establishing the Escorts Medical Centre at Faridabad, Escorts Heart
Institute and Research Centre at New Delhi, as well as numerous village development
programmes. And above all, he imbued the corporation with his own pioneering,
entrepreneurial spirit, instilling both a conscience and a vision of leadership.

Escorts is testimony to the valour, vision and values of its Founder Mr. H P Nanda.
He remains the inspiration for our courage, spirit of adventure and ability to „Think
Big‟. These qualities are his enduring legacy and have inspired and encouraged us
down the decades and will continue doing so in all our endeavors.

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FUNCTIONAL DEPARTMENT (FINANCE, MKT, HR,
PRODUCTION, PURCHASE)

HR PRACTICES :

Its Human Resource policies are aimed towards creating a skilled & motivated
workforce. It has 50 employees both employed in its corporate office as well as in its
manufacturing unit & other facilities. Description is as below:

*According to age –

AGE NO. OF EMPLOYEES

18-24 10

25-35 25

35 & above 15

TOTAL 50

PRODUCT PROMOTION STRATEGY

For the promotion mix Perfect Bake would be promoted via Advertisement initially.
This advertisement would be electronic on TV or in print like billboards, posters, print
ads, and banners.
For the time being the rest of the tools of promotion mix, like sales promotion, direct
selling and public relation are not needed but as are product is popular enough we
26 | P a g e
would start focusing on these promotional tools as well, but right now the product is
at its launch stage and mass awareness should be generated and that can only come
through electronic ads and this is the best way to reach a wide audience because
almost all people have access to it.
MARKETING STRATEGY FOR PERFECT BAKE:

Escorts Limited – AMG Plant-II Quality Objectives are derived for the quality policy
and are intended to provide quality direction to employees in the day to day operation
of the plant.

The quality objectives are applicable to AMG Plant-II is approved by Plant Head. The
approved quality objectives are below:

 Escorts Limited- AMG Plant Quality Objectives are derived from the Quality
policy and are intended to provide Quality Director to Employees in the day to
day operations of the company.

 We will attempt to give our Customers the best value for their money by
supplying products to match customer specifications/needs.

 We will attempt full customer satisfaction by monitoring customer perceptions

and brand image of our product through market surveys and periodic direct
customer contact in the market place.

 We will pursue continuing improvement in Product Quality and Productivity

by suitable indicators to measure the trends of improvement resulting from our
efforts.

 We will strive to ensure full commitment and conformance to the Escorts

Limited – AMG Plant-II Quality Management System in all areas of work and
take prompt corrective action on any problem that may occur.

 We will work together as a team across departments and organizational levels

using Task Forces to develop a common focus and greater effectiveness in
solving problems.

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  Specific Corporate and Departmental Objectives for a particular year will be
derived from the above used to monitor and control company operations.

Best value for money, customer satisfaction, continued improvement in product

quality, productivity conformance to quality management system in each area of
work, prompt corrective action and team building are the major focus areas of quality
objective of AMG Plant-II.

RURAL MARKETING OVERVIEW OF THE FARMTRAC

No. Aspect Urban Rural

1 Marketing & Societal Marketing & Societal

Concepts & Concepts,
Relationship Development
Philosophy
Marketing Marketing &
Relationship
Marketing

2 a) Market

b) Demand High Low

c) Competition Among Units In Mostly From

Organized Sector Unorganized Units

Consumers

Location Concentrated Widely Spread

Literacy High Low

Income High Low

Expenditure Planned, Even Seasonal, Variation

Needs High Level Low Level

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 Innovation/Adoption Faster Slow

3 Product

Awareness High Low

Concept Known Less Known

Positioning Easy Difficult

Usage Method Easily Grasped Difficult To Grasp

Quality Preference Good Moderate

4 Price

Sensitive Yes Very much

level desired Medium-high Medium-low

5 distribution

Wholesalers, stockists, Village shops,

retailer, supermarket, “Haats”
Channels
specialty stores, &
authorised showrooms

Transport Facilities Good Average

Product Availability High Limited

6 Promotion

Print, audio visual TV, radio, print media

media, outdoors, to some extent. More
Advertising
exhibitions etc. few languages
languages

Door-to-door, Occasionally
Personal Selling
frequently

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 Contests, gifts, price Gifts, price discounts
Sales Promotion
discount

Publicity Good opportunities Less opportunities

Special Products for Rural Markets:

 Rural Transporter: FARMTRAC is busy developing the prototype of what it

calls a „Rural Transporter‟ – basically a hybrid between a tractor and a rural
transport vehicle. The product at 20-25 HP will be targeted at those who cannot
afford a normal tractor and would also fulfill the need of family transporter that
could take in the rural roughs but would be much more comfortable and safer than
the conventional tractor-trolley.

 Titan Watches: A recent NCAER study revealed that there is a great potential for
watches in rural areas. In fact it is considered to be a high priority list. It was also
found that a rural consumer looks for the ruggedness of the watch more than the
urban consumer does. He prefers thick watches than slim watches.

The biggest problem that the Marketers are facing in the Rural Markets is Of
IMITATIONS. Imitations may result in two types of goods depending upon the
purpose, commitment, and competence of imitator. A poor imitator will end up in
producing deceptive, spurious, fake, copycat products. He dupes the gullible customer
by offering products having close resemblance with the original. In quality, it is poor
cousin to the original. On the other hand, a poor imitator may even produce an
improved version of the original product. In this scenario the job of the Marketer
becomes even more difficult in the sense that he has not to fight other competitors but
also the imitated products. The advantages that these products enjoy in the rural

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markets are that the Imitators who are in the villages are making these and they are
offering More Margins & Better credit Facilities. To solve this problem the Marketer
has to educate the consumer about his product and show him the benefits of his
products over the imitated ones.

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 PRODUCTS

PRODUCT RANGE

• TRACTORS
 Farmtrac (35 – 75 HP, Premium range)
 Powertrac (30 – 55 HP, Value range)

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  Escort (27 – 35 HP, Economy range)

• COMBINE HARVESTERS
• TRANSMISSIONS & AXLES - Ford, Ursus & Carraro SpA of Italy for
state-of-art transmissions to offer with higher HP tractors.
• ATTACHMENTS FOR TRACTORS - loaders, dozers & backhoes.
• IMPLEMENTS for various farm operations.

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 INTERNATIONAL MARKET OF THE ESCORTS

 Along with achieving high market share in domestic market , Escorts with its
Farmtrac range of tractors has spread its wings to international boundaries as
well.
 To consolidate our presence in the overseas markets, we have acquired 100 %
equity in this subsidiary i.e. Farmtrac Tractors Europe Sp. Z o with FTES
products successfully EU homologated
 Market leader in Africa , with presence in 22 African countries.
 Our DG Set business has been initiated in the overseas market with our first
order to Kenyan market.

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  Brand reinforcement and enriched experience through „Spare Parts‟ & Service
support offering.
 LOC (Line Of Credit) business a special vehicle provided to us by
Government of India to launch our products effectively in African markets

To consolidate our presence in the overseas markets, the company has acquired Long
Agribusiness LLC, a tractor distributing company in the USA, recently christened as
Farmtrac North America LLC. Over 5000 tractors have been exported to the USA in
the last three years. Another overseas joint venture Pol-Mot Escorts Spolka Z.O.O.,
Poland, (between Escorts and Pol-Mot Holding S.A., Poland), recently christened as
Farmtrac Tractors Europe Sp. Z.o.o., takes care of the assembly and marketing of
tractors in Poland and other East European countries. Our tractors in Europe have
been homologated for marketing them in all EU nations besides others. Besides USA
and Poland, Escorts is firmly based in Turkey, Australia, Bangladesh, Sri Lanka,
Nepal, Tanzania, Chile, Ghana, Zambia, and Zimbabwe. Recently we have received a
3rd Time Repeat Order for 400 tractors from Ghana, which would take the Farmtrac
population to 1,000 nos. Similarly in Senegal, we have successfully executed an order
of 410 Farmtrac tractors. Escorts have very ambitious plans to expand the dealers
network in other potential countries in the current year. In this context, we seek to join
hands with leading Agricultural Machinery / Automotive Dealers to market our
tractors in their respective countries. South Africa's tractor sales fell 30.8 percent
year-on-year in February and combine harvester sales dropped 66.7 percent, pressured
by low grain prices and a large maize crop, data showed on Thursday. Tractor sales
between January and February were down 25.9 percent to 923 units compared with
1,245 units in the same period last year, the South African Agricultural Machinery
Association (SAAMA) said. It said sales had been weighed down by low grain prices
caused by a strong rand and the large size of the maize crop currently in the ground.
"Recent sharp declines in grain prices have had a strong influence on market
sentiment and farmers are very cautious of spending money on capital goods at these
low grain price levels, whilst their cash resources are low," SAAMA chairman Leon
Pretorius said in a statement. The Crop Estimates Committee (CEC) said last month it
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expected this year's maize harvest to rise to 12.88 million tonnes, the country's biggest
crop in 29 years. South Africa, the continent's biggest economy, also has one of its
strongest agriculture sectors, but prices of some major crops have slowed on the back
of lower international prices and a stronger currency. Pretorius said SAAMA
expected tractor sales to fall by about 10 percent to 5,000 units this year.

FEASIBILITY OF ESCORTS AT SOUTH AFRICA.

The $171 million agricultural equipment market in South Africa is still dominated by
three types of farm machinery (tractors, combines and balers) which is a reflection of
the prevalent agricultural crops (maize, wheat, grain sorghum and other field crops).
While eighty percent of all agricultural equipment is imported into South Africa,
annual unit sales of the big three have only recently begun to increase after a twenty
year decline from their early 1980‟s peak. The Rand/Dollar exchange rate had a
significant influence with the import of U.S. machinery; however despite extreme
fluctuations within the exchange rate, the agriculture machinery market has remained
buoyant. The recent strengthening of the South African Rand in the beginning of the
second quarter of 2009 has placed the import of U.S. products in a favorable position.
Positive regional economic development especially in Angola and Mozambique has
also created significant international interest in these markets, with agriculture as one
of the regional country‟s primary sector focus. South Africa is regarded as the
gateway into Africa and is suitably situated within the region to assist and expand into
these markets. Changes in agricultural patterns in South Africa, including significant
decreases in the acreage of arable land under cultivation in maize and wheat and the
reallocation of land to previously disadvantaged communities have had a noticeable
impact on the types and quantities of agricultural equipment being imported.

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Market Overview
The South African agricultural equipment market is estimated at approximately
US$171 million. Tractor sales constitute the sixty percent of the total agricultural
equipment market followed by combine and baler sales. A significant number of
specialized equipment and parts are also being sourced from international markets.
Although the contribution of agriculture to the GDP is small, its importance cannot be
overstated. The agriculture sector provides employment for a million people and agro-
industrial activity amounts to about 15% of GDP, with substantial growth potential.
New land owners will also create further employment and income. Although 80% of
South Africa‟s land is used for agriculture only 15% of that is arable with the rest
being used for pastoral and other purposes.

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Agricultural Equipment Market % Segmentation
• Equipment Percentage Share
• Tractors 58.9
• Hay and silage equipment 11.6
• Harvesting equipment9.1
• Planting, fertilizing, pest control equipment 7.8
• Tillage equipment 4.5
• Other 8.2
• 100%
The recent strength of the Rand combined with low domestic interest rates has
enabled South African farmers to replace aging equipment. The Agriculture
machinery market continues to be buoyant despite a slump in sales since 2004 when
sales of combine harvester‟s rose by 48%. Figures released by the South African
Agriculture Machinery Association (SAAMA) indicate that tractor sales rose by 50
percent since 2009. Combine and Baler sales have also rose by a 50 percent compared
with sales recorded in 2010. Farm land allocation and redistribution to previously
disadvantaged communities continues to be high on the agenda of the South African
Government (SAG), with concerted efforts being made to address and eradicate past
injustices. The government is also working to develop small-scale farming in efforts
to boost job creation. While this will ultimately place more land in the hands of

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emerging farmers, the resulting agricultural operations will likely be smaller and will
require time and training/assistance to reach their potential. However, the increase in
numbers of farmers will represent an increased number of farming equipment
purchasers as well. As always, agricultural trends are greatly affected by weather and
market realities. Rainfall continued to be sporadic throughout South Africa in 2008
and 2009 with some drought conditions reported throughout the country. South Africa
has good sunlight nationwide throughout the year, which allows for more controlled
farming, particularly green house farming. This is creating a growing market for
greenhouse sheeting and other related products.

FEASIBILITY STUDY OF ESCORTS TRACTOR IN ANGOLA

tractor industry plays an important part as agriculture sector has a major contribution
to India‟s GDP. Tractors are part of agricultural machinery industry. Tractors came to
India through imports and later on were indigenously manufactured with the help of
foreign collaborations. The manufacturing process started in 1961-62. Indian tractor
industry is relatively young but now has become the largest market worldwide. There
are currently 14 players in the industry. Mahindra & Mahindra is the leading player in
the industry. Monsoon season is a key driver for sales of tractors. A series of good or
bad monsoon can affect the sales. In recent years the industry has registered a good
growth in sales, both domestic as well as exports. This is also partly because of the
initiative of the government to boost up agriculture and agricultural machinery
industry. The tractor penetration level in India is very low as compared to the world
standards. Also the penetration levels are also not uniform throughout the country.
While the northern region is now almost saturated in terms of new tractor sales, the
southern region is still under penetrated. The medium horse power category tractors,
31-40 HP, are the most popular in the country and fastest growing segment. This
report gives an insight into the tractor industry in India, discussing its inception and
growth. It analyzes the current scenario of tractors in India, industry size, domestic
and exports trends and India‟s share in global market. Lastly, it discusses the players
in the industry and profiles the top players.

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 OPERATIONS FRAMEWORK

Escorts is testimony to the valour, vision and values of its Founder Mr. H P Nanda.
He remains the inspiration for our courage, spirit of adventure and ability to „Think
Big‟. These qualities are his enduring legacy and have inspired and encouraged us
down the decades and will continue doing so in all our endeavors.

In the business world investment is made in machinery, equipment and services.

Quite naturally time and money is spent ensuring that they provide what their
suppliers claim. In other words the performance is constantly appraised against the
results expected.

When it comes to one of the most expensive resources companies invest in, namely
people, the job appraising performance against results is often carried out with the
same objectivity. Each individual has a role to play and management has to ensure
that the individual‟s objectives translate into overall corporate objectives of the
company. Performance Management includes the performance appraisal process
which in turn helps identifying the training needs and provides a direction for career
and succession planning.

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 SWOT ANALYSIS

Strengths- Strengths are the qualities that enable us to accomplish the

organization‟s mission. These are the basis on which continued success can be made
and continued/sustained. Strengths can be either tangible or intangible. These are
what you are well-versed in or what you have expertise in, the traits and qualities your
employees possess (individually and as a team) and the distinct features that give your
organization its consistency. Strengths are the beneficial aspects of the organization or
the capabilities of an organization, which includes human competencies, process
capabilities, financial resources, products and services, customer goodwill and brand
loyalty. Examples of organizational strengths are huge financial resources, broad
product line, no debt, committed employees, etc.

Weaknesses- Weaknesses are the qualities that prevent us from accomplishing

our mission and achieving our full potential. These weaknesses deteriorate influences
on the organizational success and growth. Weaknesses are the factors which do not
meet the standards we feel they should meet. Weaknesses in an organization may be
depreciating machinery, insufficient research and development facilities, narrow
product range, poor decision-making, etc. Weaknesses are controllable. They must be
minimized and eliminated. For instance - to overcome obsolete machinery, new
machinery can be purchased. Other examples of organizational weaknesses are huge
debts, high employee turnover, complex decision making process, narrow product
range, large wastage of raw materials, etc.

Opportunities- Opportunities are presented by the environment within which

our organization operates. These arise when an organization can take benefit of
conditions in its environment to plan and execute strategies that enable it to become
more profitable. Organizations can gain competitive advantage by making use of

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opportunities. Organization should be careful and recognize the opportunities and
grasp them whenever they arise. Selecting the targets that will best serve the clients
while getting desired results is a difficult task. Opportunities may arise from market,
competition, industry/government and technology. Increasing demand for
telecommunications accompanied by deregulation is a great opportunity for new firms
to enter telecom sector and compete with existing firms for revenue.

Threats- Threats arise when conditions in external environment jeopardize the

reliability and profitability of the organization‟s business. They compound the
vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a
threat comes, the stability and survival can be at stake. Examples of threats are -
unrest among employees; ever changing technology; increasing competition leading
to excess capacity, price wars and reducing industry profits; etc.

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 MAIN COMPETITORS

 HMT LTD. ( HMTLTD )

 MAHINDRA & MAHINDRA ( M & M )

 PUNJAB TRACTORS LTD. ( PUNJTR )

VST TILLERS TRACTORS LTD. ( VSTTIL )

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 CONCLUSION

With rewards being directly linked to achievement of objectives, goal setting

and Performance Appraisal assumes utmost importance. The Performance
Appraisal System has been professionally designed and it is monitored by
HRD. The implementation is the responsibility of each and every employee
along with their supervisor. There should be adequate training to the evaluator
that will go a long way in answering the quality of Performance Appraisal. In
conclusion, a Performance Appraisal is a very important tool used to influence
employees. A formal Performance review is important as it gives an
opportunity to get an overall view of job performance and staff development.
It encourages systematic and regular joint-stocking and planning for the
future. Good performance reviews therefore don‟t just summarize the past
they help determine future performance.

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 WORK CITED

 WWW.SCRIBD.COM

 WWW.WIKEPEDIA.COM

 WWW.ESCORTSGROUP.COM

 WWW.RESEARCHANDMARKETS.COM

 WWW.BUSINESS-STANDARD.COM

 WWW.SLIDESHARE.NET

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