Millat Tractors Limited

E XECUTIVE S UMMARY
Pakistan is an agricultural country
Contribute major part of GDP (44%)
MTL oldest friends of farmers making quality product
50% of tractors working in Pakistan
Lacks computer technology for production
 ABOUT MILLAT TRACTORS LTD.
engages in Provides agricultural implements
1. ploughs,
1. assembly,
2. farm trailers,
2. Manufacture
3. lawn mowers,
3. Sale
4. jib cranes,
4. export of agricultural tractors,
5. agricultural loaders.

Tractors Range In addition, it provides

1. 50 horse power (hp) to 85 hp; after-sales services.
2. diesel engines; Millat Industrial Products Limited,
3. diesel generating sets manufactures vehicles,
4. prime movers; industrial domestic batteries, cells,
5. forklift trucks. and components.
 C OMPANY H ISTORY
established in 1964
assembly plant was set up in 1967
nationalized in 1972 and started assembling and marketing tractors
on behalf PTC
1980 , the Government decided on indigenization of the tractors
1981 PTC transferred it to MTL
1992, the company was privatized by way of a management buy out.
1993, MTL acquired the management control of Bolan Castings
Limited
Mass production of generation sets was started in 1994
2002, MTL established a wholly owned company named Millat
Industrial Products (Pvt) Limited to manufacture quality automotive
batteries.
 M ANAGEMENT H IERARCHY
Board of

directors

Sikandar Mustafa Khan Board committee

Chairman For group supervision

Sikandar Mustafa
Khan

Chairman

Latif Hashmi Laeeq Ansari Mian Sandhu

Sn. Ex. Director Sn. Ex. Director Ex. Director

Mian M. Saloom Sohai Bashir Latif Khalid Hashmi

Rana
Company secretary Chairman Audit
Chief Executive committee

Mh. Ahkram M. Iqbal F.I.Ahmed Syed M. Ayub Athar Zubair

GM. Marketing GM. Cost GM. IT GM. MM GM. Technical

Ahsan Imran
Control J. Munir A.Sindhu
GM.Productio
GM. CFO GM. Admin
n

Monsoor A.Abassi Jaffar Hassan Naqvi

Sr.Manager Sr.Manager
Marketing Marketing
Rustam Ali
S. Usman
Manager Coporate
Affairs Head of Audit
 CLAIM PROCEDURE

1problem Dealers 2. notify MTL

Customers

3. inspect 5.
team
4. report

DECISION
6.
7. Spare part
YES NO
BUSINESS OVERVIEW
Corporate level strategy
Business level strategy
Operational level strategy
Product Life Cycle
BCG Matrix
 S TRATEGIES
Organizational
Corporate Level Business Level Level
in what business the how the company should TQM
company should be in compete in each of its used to improve and
Forms of diversification business maintain the tractors
Vertical quality
DIFFERENTIATION minimize the errors rate
backward integration
Horizontal offering a best after transfer best quality to the
producing agriculture sales service & warranty customer
implements maintenance package. believes on continuous
Global 1- year warranty improvement
exports its products in renders free services
form of CkD and provides free filter on Competitive Environment
tractors blend of offensive and
Means of diversification repaired from any work defensive tactics
1. Internal development shop which are present
2. Acquisition allover Pakistan 1. proactive approach
o Rex Barren batteries school for dealers, 2. reactive Tactic
technical colleges and general
o Bolan Casting
people.
 P RODUCT L IFE C YCLE

Currently the company is at maturity state like its other

competitors in the market and like its competitors it is also
introducing new products to remain stable along with that
the company has increased its after sales services duration
so that the customers will be more satisfied after selecting
a Millat tractor
 BCG M ATRIX
Massey Generating Sets
Fork lift MPG -25 &
Ferguson MF
Truck MPG-40
260

Massey
Massey Ferguson
Ferguson MF
MF 385 4WD
240
 SWOT ANALYSIS
STRENGTHS WEAKNESSES
GOOD WILL / WELL UNSATISFIED DELIVERY
ESTABLISHED IMAGE PROCEDURE
MARKET SHARE
REPAIR FACILITY LACK OF PROPER SURVEY
DELIVERY THROUGH DELAY TRACTOR DELIVERY
DEALERS AND DIRECT CASH Centralized Decision Making
BASIS
LICENSES AND Time Consuming Procedure
TECHNOLOGY NO CUSTOMER DEALING
ISO 9002 CERTIFICATION DEPARTMENT IN REAL
AFTER SALE SERVICES MEANING
AVAILABILITY OF PARTS PREMATURE LAUNCH OF 260
NETWORK OF DEALERS AND TURBO (60 HP) TRACTOR
WORKSHOPS
DIVERSIFICATION
EXPERIENCE
 SWOT ANALYSIS
OPPORTUNITIES THREATS

Due to changing needs of POLITICAL INSTABILITY

country, MTL has the
opportunity to make power STRONG LOCAL
machine along with COMPETITION
manufacturing tractors and
diversifying its business.

CROP HIGH YIELDS AND

RATES

E-COMMERCE
 PEST Analysis
POLITICAL
faced by MTL is the instable political
environment
1979, Zia government implies the
ordinance for the automobile industry
produce all the imported items at local
level
Banazeer Government had introduced
Awami Tractor scheme
Nawaz Shareef Government had
introduced Green Tractor Scheme
ECONOMIC SITUATION
created a great setback for the
organization,
1. the devaluation of Pak Rupee,
2. loadshedding,
3. law and order situation in the
country
repel foreign investment as well as
increasing cost and decreasing profit
margins
 PEST Analysis
Social Responsibility Technology

Compliance with the spirit of laws, produced 14,652 tractors as

timely payment of all govt. Taxes and against 15,370 units of last year
dues reflecting a decrease of 5 %.
Obligations, the Company continued Lacks computer technology for
to promote various welfare schemes, production
organizations and charitable
institutions.
Hospitals and charitable trusts
sponsoring Golf Tournaments at the
national level and musical activities
F INANCIAL P ERFORMANCE
 FINANCIAL PERFORMANCE
Company and its Activities
sales volume of 21,634 tractors compared to 18,505 units for the corresponding
period of last year showing an increase of 17%.
Net sales value increased by 28% to Rs. 15,169 million as against Rs. 11,842
million in the corresponding period of previous year.
Profit after taxation amounted to Rs. 1,428 million as compared to a profit of Rs.
1,198 million in the corresponding period of last year showing an increase of 19%.
current increase in sales is due to
1. reduced sales tax rate as compared to corresponding period
2. subsidy schemes of Government of Punjab and Sindh
However, for the current quarter the tractor demand has decreased due to
1. reduction in purchasing power of the farmers on account of higher input costs and
lower crop prices, reduced lending by ZTBL,
2. nonavailability of cheaper WAPDA power leading to increased reliance on high
priced alternate sources and
3. increase in sales tax by 5%.
Past Trend
C OMPETITORS AND I NDUSTRY
ANALYSIS
 AL-GHAZI
incorporated in 1983, Located in Dera Ghazi Khan, Punjab,
Pakistan. Al-Ghazi Tractors's plant for the manufacture of Fiat
Tractors in collaboration with Fiat New Holland.
has achieved a major portion of the market share so rapidly by
reducing per unit cost of tractor by switching from Italy (FIAT)
technology to Turkish technology (TUMOSAN) and by managing
its delivery period
 Sales comparison

24863264
25000000
20133130
20000000
14779564
15000000 10113572
MTL
10000000 Al-Ghazi
5000000

0
2011 2012
PORTER 5FORCES
 GOVERNMENT DEALS

AWAMI TRACTOR SCHEME:

Pakistan Peoples Party (PPP) has launched
Benazir Tractor Scheme.
free import policy will support the
economies of India, China and Eastern
Europe at the expense of people of Pakistan
 GREEN TRACTORS SCHEME

Green Tractor Scheme launched by Pakistan

Muslim League (Nawaz) in Punjab.
quota of three divisions of South Punjab
including Multan, Bahawalpur and DG Khan
and for the districts of Bhakkar and Jhang has
been increased by 15% while a total number of
4518 tractors are being distributed in 13
districts of South Punjab, as compared to 5482
tractors being distributed in the other 23
districts of the province
 ACHIEVEMENTS
MILLAT TRACTORS HAS BEEN GRADED AMONGST THE BEST
200 UNDER A BILLION & COMPANIES OF ASIA BY FORBES
GLOBAL

BEST CORPORATE REPORT AWARD 2002

TOP COMPANIES FOR THE YEAR 2009

MILLAT TRACTORS LTD SET NEW
RECORD OF HIGHEST PRODUCTION
BY PRODUCING 42,000 TRACTORS
S UGGESTIONS