PUNJAB TRACTOR LIMITED

SUMMER TRAINING REPORT ON MECHANICAL RESEARCH

MATA GUJRI COLLEGE, FATEHGARH SAHIB

Submitted to: - Submitted by: -Prof.Ritnesh Pal Singh Ankush Kumar

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ACKNOWLEDGEMENT

I feel pleasure in expressing deep sense of gratitude, first of all to Mr. J. Singh (Deputy manager-Training) for giving me opportunity of doing internship in the prestigious company like Sawraj Tractors (PTL), Mohali.

My debts for assistance in making this report are more numerous than can be identified here. This whole effort is the result of the guidance, assistance and inspiration of several people who helped me throughout my study and in the preparation of this report. I find no words to express my gratitude and thanks to all of them.

I feel greatly honored to show my indebtedness and my profound gratitude in due to Mr. Ravi Diwan (Deputy Manager-Marketing), who’s guidance and suggestions motivated me through the course of my training.

Last but not the least I wish to thank the personnel working in the marketing department for their extended co-operation and assistance in completing my training.

Ankush Kumar

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CONTENTS

Acknowledgement

History and development of tractor

Indian Tractor Industry Introduction

HistoryIndustry basicsSegment wise analysisState wise analysisChallenges for tractor industry

Company Profile PTL’s birthIntroduction to the companyGrowth of the companyOrigin of word “Sawraj”Current ScenarioFormation of a new entity (M&M and PTL)PTL’s journey of growth-A summary

Project: - Mechanical Research

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CHAPTER IINTRODUCTION

History and Development of Tractor

Tractor is a self-propelled machine which provides traction for itself and power to pull or operate implements and other agricultural and non agricultural equipment attached to it. The word “Tractor” has been attributed to various sources, but according to the Oxford dictionary, the word was first used in 1856 in England as a synonym to traction engine. The term “Tractor” appeared in an 1880 U.S.A. patent for track laying steam traction engine.

With the exception of manual labor, the animal power was practically the power used in agriculture. In 1870 a limited number of portable steam engines had been built earlier but did not find much application until after Civil war of America. Internal combustion engines came into successful use during the beginning of the twentieth century and have made a rapid rise since then. Although the steam engine gradually disappeared as the reliability of the petrol engine was improved the credit for first plough engine in the United States goes to J.W. Fakes who in 1858 built a steam engine that drew 8 ploughs at 3 miles per hour in virgin Prairie Sod.

The internal combustion engine did not assume much importance until

after expiration of the Otto Patents in 1890. By that time many had entered petrol engines field. Although there is some question as to who should get credit for building the first tractor, there is a record of 6 petrol tractors having been built in 1889 and shipped to farms.

The first tractor trials were held in 1908 at winning (South Central Canada)

where public was permitted an opportunity to compare field operation of steam versus petrol tractors. Succeeding trials were held each year until 1912 when they were discontinued. The first United States Tractor demonstration held at Omaha, Nebraska in 1911 was conducted as an exhibition and not as a competition between machines. From 1910 to 1920 a considerable number of firms went into the tractor business and developed rapidly by purchasing most of the parts from automotive sources and assembling them into tractors. The failure of most of these companies indicated an essential difference between the requirements for automobile and for farm tractors. The introduction of power take off mechanism in 1918 and of the power lift in 1928 doubled the ways of applying tractor engine power, which formerly had been limited to the drawbar and belt pulley.

A summary of the Chronological Development of the Farm Tractor as collected from various sources is as follows:

1856According to the Oxford dictionary, the word “Tractor” was first used in 1856 in England as a synonym to traction engine.

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1858Tractors with steam engine by J.W. Fakes drew 8 ploughs at 3 miles per hour in virgin Prairie Sod.1868The Standish Steam Engine Tractor ploughed over 100 acres in the Diablo valley in California. The plough was actually a form of Rotary Pulverizer.

1873The Parvins Steamer was probably the first American attempt at a track laying device, although the United States plough office records Crawler Tractor developments in the early 1850’s.

1876Otto patents were issued for an Internal Combustion Engine.

1880The term “Tractor” appeared in an U.S.A. patent for track laying steam traction engine.

1889At least one company built a tractor with an Internal Combustion Engine.

1906The First Tractor School was held in Minneapolis.

1908The first Winnipeg tractor trials were held.

1910About 56 concerns were manufacturing tractors.

1910-1914The first Tractor demonstration was held in the United States at Omaha, Nebraska.Production and improvement of large tractors continued.Smaller, lightweight tractors were introduced.

1915-1919Number of tractors and number of manufacturers expanded rapidly.Great improvement in reliability of tractors.Enclosed gears, alloy steels and anti friction Bearings were introduced.

1910-1924Depression reduced number of small manufacturers.Tractors engines, lubrication systems and accessories such as air cleaners continued to improve.

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A highly successful all purpose farm tractor was developed.

1925-1929The power take off was introduced.Crankcase oil filters and power lifts were introduced.Garden tractors became increasingly popular.

1930-1937The diesel engine was appalled to larger tractors.Pneumatic tyres and higher speeds were developed.Full electrical equipment was adopted.Interest in high compression engine increased.The all purpose tractor was introduced.

1937-1941Standardized A.S.A.E. (American Society of Agricultural Engineer) and S.A.E. (Society of Automotive Engineer) power take off and hitch were generally accepted.Pressurized cooling systems were introduced. Automatic hydraulic draft control was introduced.

1941-1949Live power take-off was introduced.Battery ignition systems became increasingly popular.Tractors for burning liquefied petroleum gases were introduced.Number of garden tractors expanded rapidly.

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Indian Tractor Industry

Introduction

India being a predominantly agricultural country, where agriculture is the life and blood of the economy, has been a traditional manufacturer of different types of farm machinery and implements. However, the use of advanced agricultural techniques in India started only in early sixties. Modernization of tractor in Indian agriculture is only post independence phenomenon. One of the achievements of green revolution has been that the farmers increasingly realized the advantage of tractor for obtaining the timeliness of operations. This would only happen only because off awareness of new farm technology among the farmers, rise in the level of their income and education.

The biological source of energy especially bullocks, could not cope with the requirement of the changed situation. Therefore introduction of tractors got accelerated in several agriculturally advanced states of the country like Punjab, Haryana and Maharashtra etc.. Tractors were introduced to Indian agriculture in early twenties. Sh. Joginder Singh was the first farmer to use a tractor called a steam plough then, on the 1200 acres estate he had inherited in the remote Kheri district of Uttar Pradesh. The demand of tractors rose sharply in last two decades. However the rate of adaptation of tractors is different in different parts of the country. Punjab occupies number one rank in this regard. Punjab possesses only 1.5% of the geographical area of the country; the density of 85 tractors per thousand hectare in Punjab is the highest as compared to national average of 10.5 tractors per thousand hectare.

India is primarily an agrarian nation with a significant portion of our GDP being contributed directly or indirectly by agriculture. No wonder India is considered the largest tractor market in the world. If that sounds great let us face hard facts. In terms of total tractors use in the country, we are ranked a distant eighth. In terms of penetration, India has a tractor density of 10.5 tractors per thousand hectares of grass cropped area (GCA) as compared to an international average of close to 30 tractors per thousand hectares of GCA.

Figuratively speaking, India’s large of grass cropped area (GCA) is next only to the big two-USA and Russia. That and the highly fragmented land holdings in India have helped our country to become the largest tractor market in the world. Thus the Indian Tractor market, per se, has to be viewed only after considering its position in the world.

Description Units World Total or Average India

India's Rank

Arable LandMillion hectare 1,444 170 2

Irrigated AreaMillion hectare 249.6 45.8 2

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Tractors in useTractor/1000

hectare 28 10.5 8

Despite a phenomenal increase in tractor population in the country, the tractor density is very low at about 10.5 tractors per thousand hectares of grass cropped area (GCA) as compared to an international average of 28.5 tractors per thousand hectares of GCA. Also the small size of land holding in India, have led to low average power of tractors at 35 horse power(HP) which is far below than the global average of 80 HP.

Easy availability of bank finance coupled with declining interest rates has propelled the demand for tractors. Furthermore a good monsoon, a strong growth in agricultural production and an increase in the irrigated area are expected to lead to a secured long term growth of 7-8 % in next years.

There has been a boom in the tractor industry since 1997. The sales of tractors are not evenly distributed. They are mainly concentrated in the North and North-West where Punjab, UP and Haryana account for nearly 50% of the tractor sales. Punjab alone accounts for 26%. The main reason is comparatively larger land holdings and the affluence of the farmers in these states. New markets like Madhya Pradesh, Tamil nadu, Andhra Pradesh, Maharashtra and Gujarat are also growing at a faster pace. High Transportation cost is one of the main reasons preventing brands from going national.

Lured by the huge demand for tractor, the industry is all set for a virtual invasion by new and strong entrants and more importantly, the existing players have an eye firmly on the growing export market. Thus this sector is expected to continue to have an upward growth graph.

History

1945 to 1960War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid 1940's. In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.

1961 to 1970

Local production began in 1961 with five manufacturers producing a total of 880

units per year. By 1965 this had increased to over 5000 units per year and the

total in use had risen to over 52,000. By 1970 annual production had exceeded

20,000 units with over 146,000 units working in the country.

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1971 to 1980

Six new manufacturers were established during this period although three

companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not

survive. Escorts Ltd. began local manufacture of Ford tractors in 1971 in

collaboration with Ford, UK and total production climbed steadily to 33,000 in

1975 reaching 71,000 by 1980. Credit facilities for farmers continued to improve

and the tractor market expanded rapidly with the total in use passing the half

million mark by 1980.

1981 to 1990

A further five manufacturers began production during this period but only one of

these survived in the increasingly competitive market place. Annual production

exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in

use was about 1.2 million. Then India - a net importer up to the mid-seventies -

became an exporter in the 1980s mainly to countries in Africa.

1991 to 1997

Since 1992, it has not been necessary to obtain an industrial license for tractor

manufacture in India. By 1997 annual production exceeded 255,000 units and

the

national tractor population had passed the two million mark. India now emerged

as one of the world leaders in wheeled tractor production.

1997 to 1999

Five new manufacturers have started production since 1997. In 1998 Bajaj

Tempo, already well established in the motor industry, began tractor production

in Pune. In April of the same year New Holland Tractor (India) Ltd launched

production of 70 hp tractors with matching equipment. The company is making a

$US 75 million initial investment in a state of the art plant at Greater Noida in

Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen and

Toubro have established a joint venture with John Deere, USA for the

manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra and Greeves

Ltd will produce Same tractors under similar arrangements with Same Deutz-

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Fahr of Italy. Looking to South American export markets Mahindra and Mahindra

are also developing a joint venture with Case for tractors in the 60-200 hp range.

Total annual production was forecast to reach 300,000 during the following year.

1999 to Present

Facing market saturation in the traditional markets of the North West (Punjab,

Haryana, eastern Uttar Pradesh) tractors sales began a slow and slight decline.

By 2002 sales went below 200,000. Manufacturers scrambled to push into

eastern and southern India markets in an attempt to reverse the decline, and

began exploring the potential for overseas markets. Sales remained in a slump,

and added to the market saturation problems also came increased problems of

"prestige" loan defaults, where farmers who were not financially able took

tractors in moves to increase their families prestige. There are also reported

increased misuses of these loans for buying either lifestyle goods, or for social

functions. Government and private banks have both tightened their lending for

this sector adding to the industry and farmers woes. By 2004 a slight up tick in

sales once again due to stronger and national and to some extent international

markets. But by 2006 sales once again were down to 216,000 and now in 2007-

08 have slid further to just over 200,000.

Industry basicsThe Indian tractor market is dominated by low price, rugged, versatile and low to medium powered tractors; the main reason being the inability of the farmers to invest in farm mechanization. Tractors are categorized on the basis of horse power (HP) of the engine. In India the popular range of tractors is 20-40 HP as compared to 60HP in Europe and 90 HP in the USA. Though large tractors were economically unviable in India, there has been an increasing demand for powered tractors due to soil conditions, particularly in states of Madhya Pradesh, Gujarat and Maharashtra. But more recently, higher powered tractors are also being sold in states like Punjab where it is considered as a status symbol. Tractors available in India are ¼th of the prices of similar powered tractors internationally or in developed countries. Availability of credit is the most crucial factor impacting tractor demand, as in India 90% of the tractors are financed by bank credit at concessional rates. Increased use of irrigational facilities, shift towards multi cropping, consolidation of land holdings, promotion of cooperatives and higher investment in agriculture also contributes to higher tractor demand. The tractor segment comprises players like Eicher, Escorts, HMT, Punjab Tractors, M&M, TAFE, Swaraj which control about 98% market share. India is the

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world’s largest tractor market in tractors since 1996. A few international players like Case New Holland, John Deere and Steyr have also set up facilities in India. But these players have entered the higher powered category and thus pose little threat to the existing players who enjoy advantages of established distribution/service network and strong brand equity. Punjab Tractors Limited is mainly promoted by Punjab State Industrial Development Corporation and has acquired the second highest market share in the tractor segment from 9.1% in 1975. In 1970, PTL had major competition from other companies like Eicher, Tractors and Farm Equipment (TAFE), Mahindra & Mahindra (M&M), Escorts and HMT. PTL is one of the leaders in its business and has put up a heady performance in contrast to other private sector players. As against other players, which report a ROCE of 15% on an average, PTL has consistently remained at a about 50% in the last few years though the industry is capital intensive. Punjab Tractor Limited is the only major tractor company, which entered this business without any further collaboration. The company has beefed up its capacity in the last 2 to 3 years. PTL’s Swaraj-735 is in a class of its own and has been benchmarked by its competitors to which 16 new features has been added.

Segment Wise Analysis

1. The Indian tractor market is traditionally a medium horsepower market consisting mostly of 31-40 hp, which constitutes almost 51% of the total market in 2005-2006. Growth of the industry is closely related to growth in this category. The category in this category. The category in 2005-2006 included a sales volume of 148,000 units, up 18% over 2004-2005.

2. In other size categories, 41-50 hp category achieved the second highest growth of 34 % over 2004-2005 and constitutes 24 % of the total market. The 21-30 hp categories had a market share of 17 % while the above 51hp category was around 8 %.

State Wise Analysis

1. 93% of the tractor industry is concentrated in 12 major states, namely , Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Maharashtra, Madhya Pradesh, Orissa, Punjab, Rajasthan, Tamil Nadu, & Uttar Pradesh. UP is the largest market with 44,308 units sold in 2005-2006. Incidentally this is 3.5 % less than 2004-2005 sales. Tractor sales in states such as Karnataka, Maharashtra, Tamil Nadu & Gujarat have shown a tremendous growth in the 2005-2006 period of 63%, 54%, 47%, respectively. Meanwhile, tractor sales in Bihar & MP fell by 28 % each

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2. On the supply side, all of the companies had increased their production & the total production reached 296,080 in FY 2006. The total industry supply was increased by 18.87 % in FY 2005-2006 as compared to FY 2004-2005. The sharpest increase in production was in the 41-50hp category, by 30 %, followed by 21-30hp category, by 21%. However, the 41-50hp category grew by 8.7 %.

Challenges for Tractor Industry

1. Buying Capacity- reducing average age of tractor buyers from the age group of above 40 to younger people

i. Increasing demandsii. Higher expectations on comfort levelsiii. Importance for styling & appearanceiv. Better finish(paint finish like cars)v. Importance for brand identitiesvi. Fuel economyvii. Awareness about latest technologiesviii. Likes on new modelsix. Longer life- resale value

2. New product Developmenti. Rapid prototyping-component developmentii. Engine performance and power iii. Styling- availability of latest technologiesiv. Accelerated testing techniques reduce the development lead

time to help industry to introduce new models in shorter periods.

3. New Regulations- Emissions norms in near future- Bharat TREM IV/ EURO 3/ US TIER 3

4. New Regulations- Noise/Safety/ Other Regulations

5. Application of electronics – the recent developments in applications of electronics on agriculture tractors like GPS & Auto Cruise have helped farmers greatly.

6. Export Potential

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i. Testing under various climatic conditions- one of the challenges for export of tractors

ii. Testing & certification as per OECDiii. NATRIP would represent India in technical committees worldwideiv. Expert teams to coordinate with standardization

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CHAPTER IIPROFILE OF THEORGANISATION

COMPANY PROFILE

PTL’s Birth

Keeping in mind Punjab agrarian economy it was decided by Punjab government to encourage the growth of industries which complements Punjab’s agricultural growth. This task was entrusted to Punjab State Industrial Development Corporation (P.S.I.D.C.) which has played a major role in bringing Punjab to threshold of industrial revolution. With the dual objective of industrial and agricultural growth, P.T.L. was established on 27th June, 1974.

Introduction to the Company

Punjab Tractors Limited, a public limited company, is India’s first large-scale project based company with a totally indigenous design, know how and technology. Punjab State Industrial Development Corporation (P.S.I.D.C.), which was a major player, prompted it; the government of India and financial institutes like Punjab Financial Corporation (PFC) provided significant support; the public subscribed the remainder.

Location: The factory is located at Sahibzada Ajit Singh Nagar (Mohali), which is an important township of Punjab.

As on 31st Mach, 2003 the share holding pattern of the company was as follows:.

Share Holder Percentage Holding

Promoter (PSIDC) 23.49%Financial Institutions 37.69%LIC and subsidiaries 7.95%Indian Mutual Funds 0.51%

FII’s/NRI/OBC 8.16%Retail Investors 22.20%

However in 2004, PSIDC divested its’ equity stake in the company to a multinational company CDC.

BOARD OF DIRECTORS ANJANIKUMAR CHOUDHARI(Chairman)

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M. RAGHAVENDRAK. SAHAYS.K. CHANANAHARDEEP SINGHDALJIT MIRCHANDANICHANDRA MOHANV.S.PARTHASARATHYNARAYAN SHANKAR

BISHWAMBHAR MISHRA(Managing Director & Chief Executive Officer)

A.M. SAWHNEY(Deputy Managing Director)

VICE PRESIDENT – FINANCE M.N. KAUSHAL& COMPANY SECRETARY

AUDITORS M/S. S. TANDON & ASSOCIATESCHARTERED ACCOUNTANTSBANKERS INDIAN OVERSEAS BANKCANARA BANKSTATE BANK OF INDIAREGISTERED OFFICE PHASE - IV, INDUSTRIAL AREA,S.A.S. NAGAR (MOHALI),PUNJAB - 160 055

Growth of PTL

Punjab Tractors Limited started with an annual capacity of 5000 tractors and with a capital of INR 3.70 crores. It went into commercial production in the year 1974; its first production was 26.6 BHP tractors given the name SWARAJ-720. Ever since then P.T.L. has not looked back. The capacity has increased to 24,000 tractors per annum, which is a considerable achievement by any standards. In all, Swaraj provides with a host of varied products which includes:

Tractors Harvesting Combine Fork Lifters Agriculture Implements Automotive Castings

Punjab Tractors Limited consists of three Units / Divisions.

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SWARAJ TRACTOR DIVISIONSWARAJ COMBINE DIVISIONSWARAJ FOUNDRY DIVISION

Besides above it has promoted 2 new companies, Swaraj Mazda Limited and Swaraj Engines Ltd. Which are active players in Industrial scene of Punjab.

(i) SWARAJ TRACTOR DIVISION

The construction work was started in March 1972 and the first batch rolled out on 14th November, 1973. Commercial production started in April, 1974. Presently its production range includes:

Tractor

Swaraj 724, a 26.5 BHP (SAE) tractor introduced in 1974.Swaraj 735, a 39 BHP (SAE) tractor introduced in 1975.Swaraj 720, a 19.5 BHP (SAE) tractor introduced in 1978.Swaraj 855, a 55 BHP (SAE) tractor introduced in 1983.

Agricultural ImplementsDisc ploughCultivatorDisc HarrowPlanter (Seed cum fertilizer)Shrub master.

(ii) SWARAJ FOUNDRY DIVISION

PTL set up a captive foundry unit with an investment of Rs. 150 Million in the year 1980. The division is located at village Majri in Ropar district a distance of 22 kms. From Chandigarh. This division supplies automotive castings to all other units of PTL and to SML and SEL i.e. Swaraj Mazda Ltd. And Swaraj Engines Ltd. The current production capacity is 8000 tonnes of grey foam wastings per annum on single shift basis.

1.2 (iii) SWARAJ COMBINE DIVISION

SCD was set up in 1980 near Vill Chappercheri Tehsil Kharar, District Ropar, with a capital outlay of Rs. 26 million to manufacturer self propelled. Harvestor combines “Swaraj 8100’. Gradually the division has increased its product range. In 1985 it brought out. Diesel forklifts FD 20 and FD

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25 with lifting capacity of 2 and 2.5 tonnes respectively, a product was totally based on its own design and technology. Later in the year, the company also entered into technical collaboration with kamatsu Forklift Company of Japan for manufacturing both diesel and electric forklifts up to 10 tonnes capacity.

In keeping its diversification plans, Manufacture of tractor traitor (non-tipping type) and shelters for ONGC and PUNWIRE has also been undertaken at SCD. In the year 1995-96 the total sales turnover of SCD is 61000 crores.

1.3 INTERNATIONAL AND NATIONAL COLLABORATION

LIGHT COMMERCIAL VEHICAL (LCV)

Punjab Tractors Limited enter into a technical and financial Collaboration with Mazda Motor corporation, Japan in 1984 to set up another company by the name of Swaraj Mazda Limited, Rs. 50 crore projects with annual installed capacity to manufacture 5000 number light comercial vehicles (3.5 tonnes pay load) on two shifts basis. The company holds 29% equity shares in Swaraj Mazda Ltd. Mazda Motor corporation and their association sumitomo corporation hold 26% of the equity, the remainder is being subscribed by the public. FORK LIFTSThe company entered into technical collaboration with Komatsu Forklifts Company of Japan in 1985 for the Manufacturing of high tecnology forklifts upto 10 tons lifting capacity both diesel and electric.

DIESEL ENGINESPTL set up Swaraj Engines ltd in technical and financial collaboration with Kirloskar oil engines Ltd. in 1987f, for the manufacturing of diesel engine. Installed capacity is 15000 engines per year.

EXPORT PERFORMANCEHaving established Swaraj in the Indian Market, PTL started in 1978, establish itself in the international market. Over the year a large number of Swaraj Tractors, implements and harvester combines are operating in many countries like Africa, the Middle east and South East Asia.

RESEARCH AND DEVELOPMENTEver since the beginning of industrialization, Research and Development has been the basic strength of every industry. The emphasis on R & D in PTL is proud by a Long List of new products that have been introduced and established in the long years of PTL’s existence. R&D team developed and commercially launched its product in the following order:

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MODEL YEAR

Swaraj –724 1974

Swaraj –735 1975

Swaraj –720 1978

Swaraj – 855 1983

Swaraj – 922 1985

Swaraj – 922 1995

Swaraj – 8100 1980

Forklift trucks 1985

Multicrop Thresher 1986

1.4 RESEARCH AND DEVELOPMENT COMPLEX

Introduction

Due to increased production targets of Swaraj Tractor and growing needs of greater Research and Development, a new R&D complex was set up. This complex was inaugurated by Governor of Punjab on 15th June, 1991. This complex has following facilities:

Advanced Research and development needs for Tractors, Harvester Combines and forklift.Swaraj centre for HRD for the training of management staff, supervising staff and workers.Spare parts division of Tractors, Harvester Combines and forklift.

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Location

The R&D complex is located at A-29-E Industrial Area phase VI, SAS Nagar,.

Functions

R & D WING

Improvement of existing design of Tractors, Harvestor combines and forklifts Include.

Design officePrototype Manufacturing and Assembly facilities.Prototype and accelerated testing facilities.

SPD (Spare Parts Division)

Spare Parts of all Swaraj Products are made available here.

SWARAJ CENTRE FOR H.R.D.

This centre imparts training to Swaraj workers, supervisors and Management staff and new comers. It has the following facilities:

a) Two Auditoriums with a seating capacity of 100 persons each. Manual work shop which includes machine shop, fitting shop, auto shop, paint shop and welding shop.Library with reading room for Technical books and journal

Origin of the word “SWARAJ”

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The word “SWARAJ”, in Hindi, means “freedom from bondage”. Since, P.T.L. was the first largest tractor project in India, moreover fully based upon Indian technology; so Swaraj was appropriately chosen as its brand name.

Punjab Tractors Limited (PTL) is one of the leading manufacturers of tractors in India. PTL has been known as the industry out performer since inception. Even when the company grew at a CAGR of 6.1% during 1991-2000, PTL grew at the CAGR of 11-9%. In terms of market share PTL was the second largest player after Mahindra & Mahindra in FY 2001 with a market share of 18.1%. PTL tractors are sold under the SWARAJ brand name. PTL has a strong market share of around 20% in the northern region with the highest share in Punjab and Haryana and 16% in the western and southern regions of India. In the east the company accounts for 11% market share. The tractor sales accounted for 83.3% of PTL’s turnover in FY 2001 whereas the harvester combines, forklifts and spare parts accounted for the balance.

Current Scenario

During the first half of 2001-02 PTL increased its market share from 18.5% to 21.4%. With the total industry volumes plummeting by 16.6%, the sales of PTL fell only a trifle

3.1%. Under these circumstances though the revenue has fallen by a 0.38% the operating profitability has risen by 1.03%. PTL garnered the operating margins of 19.4% in the first half of FY 2001-02, while the lead players like M&M, Escorts & Eicher have reported operating margins of 4.4%, 0.7% and 2.9% respectively. The net profit has increased by 1.4% to INR 564 millions and the contribution of 40-50 HP tractors has increased by 30%, which indicates higher margins from bigger tractors due to a strong foothold in Punjab and Haryana markets.

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INDUSTRY & M.SHARE

FORMATION OF A NEW ENTITY (M&M AND PTL)

In 2007, M&M acquired 64.64% shares of PTL. With the formation of a new entity (M&M and PTL), a new era has dawned upon, new vistas of opportunities have opened. The group occupies leadership status in the country in utility vehicles, tractors, telecommunication software, auto components and real estate.

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0

100000

200000

300000

400000

500000

600000

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

IND. 161439 187628 216947 250665 257027 266552 244770 210918 158601 173051 225256 261167 315759 302377

M.SHARE 14% 14% 15% 16% 19% 19% 18% 19% 15% 17% 15% 13% 11% 12%

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Desire to be among the world’s top players, M&M and PTL through sustained efforts have developed a strong global foot print. Farm Equipment Sector (FES) is one of the core businesses of the group and ranks among one of the top four tractor companies of the world. FES’s quest for quality in every sphere of activity has not only helped it to retain uninterrupted market leadership for 24 years in India, but earned many unique distinctions like, being the first tractor company in the world to have won Deming prize for quality, first Indian tractor company to have crossed a lakh mark in sales in a year and have entered elite club of tractor companies having a satisfied customer base of more than 12 lakhs. It is a matter of pride that M&M and PTL, the two renowned organizations have come together to form one operational entity with a strong potential to redefine tractor business.

As on 31st Mach, 2009 the share holding pattern of the company was as follows:

Share Holding Pattern

64.64%

22.75%

2.37%

0.44%

9.80%

Mahindra and MahindraGroup

LIC/Banks

Mutual Funds/Banks

Other FII's

Public

Domestic Territorial Market Share and Dealer Network (Year End)

Territory Swaraj Market Share

No. of Dealers as on

31-03-05

North (Punjab, Haryana & Uttar Pradesh) 13.5% 169

Central (Madhya Pradesh & Rajasthan) 8.4% 86

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East (Bihar, West Bengal, Orissa & Assam) 13.0% 53

West (Gujarat & Maharashtra) 13.8% 60

South (Andhra Pradesh, Tamil Nadu, Karnataka & Kerala)

11.1% 65

Total 11.8% 433

Segment wise

HP Range No. of Models %age of Swaraj Sales Swaraj Share in Segment

Upto 30 HP 4 25% 15%

31 - 40 HP 2 53% 12%

Above 40 HP 3 22% 7%

PTL’s Journey of Growth-A Summary

1965: Government of India’s research institute CMERI, Durgapur sows the seed by initiating design and development of a totally indigenous tractor.

1970: PTL promoted by PSIDC, set up as India’s first large scale totally indigenous project to take the commercial production of the country’s first truly Indian tractor.

1974: SWARAJ 724(26.5 HP) tractor launched.

1975: SWARAJ 735(39 HP) tractor launched.

1977: 40 days strike

1978: SWARAJ 720(20 HP) tractor launched.

1980: PTL takes over Punjab Scooters Limited (renamed as Swaraj Automotives Limited). Now manufacturing advanced automotive and rail coach seating systems. Swaraj combine division set up for manufacturing India’s first self propelled harvester combine.

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1983: Swaraj 855 (55 HP) tractor launched. Expansion of tractor capacity to 12000 p.a.

1984: PTL promotes Swaraj Mazda Limited in collaboration with Mazda Motors Corporation, Japan for manufacture of light commercial vehicles with equity Participation of INR 3.04 crores (29%).

1985: Swaraj Industrial Forklift Trucks launched.

1986: Swaraj promotes Swaraj Engines Limited in collaboration with Kirloskar Oil Engines Limited to manufacture diesel engines with equity participation of INR 0.69 crores (33%).

1987: 90 days lock-out March-June.

1989: Reservation of 200 shares per employee. Equity moves to INR 3.16 crores.

1990: Equity moves to INR 5.06 crores.

1992: Equity moves to INR 10.12 crores

1993: Tractor manufacturing capacity increased to 12000 tractors p.a. at tractor plant-I.

1995: Set up plant-II with Tractor manufacturing capacity of 12000 tractors p.a.

1997: Tractor manufacturing capacity increased to 42000 p.a.

1998: Swaraj 733 FE (33 HP two cylinder tractor) launched.

1999: Swaraj 744 FE (48 HP three cylinder tractor) launched.Tractor capacity increased to 60000 tractors (30000 each plant).

2001: First consignment of tractors with global features exported to U.S.A. Many of the new features incorporated in the tractors for domestic market.

2003: Launched single cylinder tractor Swaraj 722 Super. PSIDC divested its stake to UK based firm CDC.

2004: Launched new 34 HP (three cylinder tractor) Swaraj 834.

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2007: Mahindra and Mahindra acquired 64.64% shares of Punjab Tractors Limited.

Punjab Tractors Ltd. to merge with Mahindra & Mahindra Ltd.

The Board of Directors of M&M and PTL today unanimously approved aScheme of amalgamation of Punjab Tractors Limited (PTL), an M&M subsidiary, with Mahindra & Mahindra Ltd. Mahindra owns a majority stake in Punjab Tractors Limited and had earlier acquired 63.33% stake in PTL in July 2007. MHFL, a wholly owned subsidiary of M&M, currently holds 1.31% of PTL, and is also in the process of being merged into M&M. Under this amalgamation scheme, pursuant to provisions of Sections 391 to 394 and other relevant provisions of the Companies Act, 1956, PTL will be merged into M&M and all its assets and liabilities will be transferred to M&M at book values. The Appointed Date under this scheme is 1st August 2008. Upon the scheme becoming effective, M&M will transfer all the equity shares held by it in PTL to a Trust, of which M&M is the beneficiary. M&M will issue its shares to PTL shareholders as on record date, based on the swap ratio determined by independent valuers. Mr. Anand Mahindra, Vice-Chairman and Managing Director, Mahindra Group, said, “PTL is a strategic fit for M&M and its amalgamation with M&M will significantly add to shareholder value. Bringing these two businesses under a single entity will also result in a common management focus, help achieve greater integration benefits and reduce overall administrative costs.”An independent valuation exercise has been conducted jointly by Ernst & Young and N. M. Raiji & Company. Based on this exercise, the share exchange ratio for the amalgamation has been arrived at. Equity shares of M&M will be issued to the shareholders of PTL in the ratio of 1 (one) equity share of Rupees 10 each of M&M for every 3 (three) equity shares of Rupees 10 each held in PTL. The Scheme as approved by the Board is subject to such consents and approvals, as may be required including that of the shareholders and the High Courts of Bombay and Punjab & Haryana.

About The Mahindra Group

The US $6.7 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra is the market leader in multi-utility vehicles in India It made a milestone entry into the passenger car segment with the Logan. Mahindra &

26

Mahindra is the only Indian company among the top tractor brands in the world. The Group has a leading presence in key sectors of the Indian economy, including the financial services, trade, retail and logistics, automotive components, after-market, information technology and infrastructure development. Mahindra is now poised to make an entry in the two-wheelersegment. Mahindra's Farm Equipment Sector has recently won the Japan Quality Medal, the only tractor company worldwide to be bestowed this honor. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its Global 200.

The Board of Directors of the Company has, as its members, eminent persons from Industry, Finance, Investment and other branches of business, who bring diverse experience and expertise to the Board

The Company's current Board of Directors is as follows:

NAME DESIGNATION

Mr. Keshub Mahindra chairmanMr. Anand G. Mahindra Vice chairman and Managing

DirectorDeepak Shantilal Parekh DirectorNadir Burjori Godrej DirectorM.M. Murugappan DirectorBharat Narotam Doshi Executive Director & Group Chief

Financial OfficerArun Kumar Nanda Executive Director & SecretaryNarayanan Vaghul DirectorDr. Ashok Sekhar Ganguly DirectorR.K.Kulkarni DirectorAnupam Pardip Puri DirectorThomas Mathew T. Nominee of LIC

INTRODUCTION OF CSR (Corporate Social Responsibility)

Corporate Social Responsibility has always been an integral part of the Mahindra Group's vision and the cornerstone of our Core Value of Good Corporate

27

Citizenship. - Keshub Mahindra, Chairman 

The Mahindra Group defines Corporate Social Responsibility as making socially responsible products, engaging in socially responsible employee relations and making a commitment to the community around it. At the Mahindra Group, Corporate Social Responsibility is not just a duty; it's a way of life.

In 2005, the Group celebrated its 60th anniversary by renewing its commitment to Corporate Social Responsibility. It pledged to dedicate 1% of its profit (after tax), on a continuous basis towards Corporate Social Responsibility. A unique kind of ESOPs - Employee Social Options was launched to enable Mahindra employees to involve themselves in socially responsible activities of their choice. The Group also announced a special gift: to provide free cochlear implants to 60 profoundly hearing-impaired, under-privileged children.

In addition to giving impetus to the Nanhi Kali project for the girl child and the Mahindra All India Talent Scholarship for the economically disadvantaged, the Mahindra Group is planning to set up two Mahindra Pride Schools. These schools will offer a variety of courses, with an emphasis on employability, including training for Information Technology, Retail, Automotive Engineering etc. They will provide new skills and capabilities to the weaker sections of society, particularly the scheduled castes and scheduled tribe youth.

THREE SOCIAL INITIATIVES UNDER CSR:

1) Education,2) Environment3) Health

Education:

1) Established by the late Mr. K. C. Mahindra in 1953, the K. C. Mahindra Education Trust aims to ‘Transform the lives of people.’

in India through education, by providing financial assistance and recognition to them, across age groups and across income strata'. It was registered as a Public Charitable Trust under the Bombay Public Trusts Act, 1950.

The K.C. Mahindra Education Trust has undertaken a number of education initiatives to make a difference to the lives of deserving students. The Trust promotes education mainly by way of scholarships. It has provided more than Rs. 13.80 crores in the form of grants, scholarships and loans. Some of these scholarships were instituted as far back as the 1950’s, while others were founded

28

recently. These are funded through an investment portfolio, the main donors which are the Mahindra Group of companies.

As part of its Corporate Social Responsibility activities, the Mahindra Group has established schools near its factories primarily for children of its employees. At present, the Group has three schools that impart high standards of education –

Mahindra Academy at Malad in Mumbai, Mahindra Academy in Zaheerabad and a school in Khopoli.The establishment of these schools has not just benefited their employees but also the community around these schools. Teachers at these schools are qualified and undergo regular training as well as attend relevant workshops. Their teaching methodologies are constantly evaluated and modified when necessary.The striking feature of the United World Colleges is that they embrace the entire world across all divides of race, history, culture, wealth, religion, economic status and political belief: they are unique and they are conscious of their responsibilities.

– Nelson Mandela, United World College Honorary President

The Mahindra United World College of India, part of the United World College movement, was founded by the late Harish Mahindra in 1997. It is the Group’s endeavour to promote world- class education with an emphasis on the ideals of peace and understanding, central to the ethos of the United World Colleges. There are 10 United World Colleges spread across the globe, with colleges situated in United Kingdom, Singapore, Canada, Swaziland, Italy, United States of America, Venezuela, Hong Kong, Norway and India. Her Majesty Queen Noor of the Hashemite Kingdom of Jordan is the President of the United World Colleges and Mr. Nelson Mandela, former President of the Republic of South Africa, is the Honorary President of the United World College International Council.

Located 40 kms. West of Pune, the Mahindra United World College of India brings together students of various nationalities for a pre-university degree. The school is global not only because of the International Baccalaureate degree, but also because of the true international culture in which the students study, live and learn. Each year’s batch of about 100 students accommodates about 65 to 70 from abroad. The faculty includes professors from Argentina, Australia, Austria, Cameroon, Canada, Colombia, Ecuador, France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Sweden, South Africa, UK and USA. The teacher-student ratio is 1:9. 

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This international mix facilitates global exposure and helps students transcend all artificial barriers based on race, religion, ethnicity, class, gender or nationality. Keen focus is given on all-round development, and students are encouraged to think innovatively by involving themselves in socially and environmentally relevant issues. The students also contribute to the local neighborhood through community service programs. Health

The Mahindra Foundation has been set up with a specific objective: to provide medical relief to the poor and needy sections of society. The foundation has helped patients suffering from cancer, heart ailments as well as burn victims.The Mahindra Group has always been very responsive to any major disaster in India. Whether it's been the tsunami or the Gujarat earthquake, the Mahindra family has got together and always provided support either by way of financial help or by way of sending vehicles, supplying material or manpower.

Environment

Environment protection is a part of everyday being at the Mahindra Group. Right from Mahindra products such as vehicles which are designed meeting International standards of Safety and emission, to all Mahindra plants across the nation which comply way beyond necessary environmental regulations by setting new standards in natural resource conservation, efficient water management and with the most recent Green IT; Mahindra shows that it care of planet earth proactively. Towards making planet earth greener, the Group has vowed to plant a One Million Trees across the Nation by October 2008 under the Mahindra Hariyali initiative. Mahindra Hariyali, is a mass tree plantation initiative undertaken by each and every Mahindra location - be it a Plant/factory setting or a corporate office. Shramdaan by Mahindra employees (and their families) themselves and even Mahindra dealers is a major driver of the initiative. With strong and meaningful partnerships with various stakeholders in the civil society such as schools, colleges, trusts, and also the Government (Forest Departments etc).Since 1984, the Mahindra Group has been lending a hand to the ‘Green Bombay’ movement by developing and maintaining municipal gardens. the Group has transformed three municipal gardens:  The Shivaji Garden (near Gateway of India) is admired for its beautiful architecture and flourishing plants and flowers. Completely renovated by the Mahindra Group at a cost of Rs. 6 Lakhs The Traffic Island Garden (opposite Regal Cinema) has been completely renovated by the Mahindra Group at the cost of Rs. 1 Lakh.

30

The third garden is located at the junction of Madame Cama Road, to the south of Oval Maidan. This is a brand new garden, developed by the group from scratch, at a cost of Rs. 1.5 Lakhs.

SWARAJ GLOBAL PRESENCE

31

Egypt

Zimbabwe

USA

S’Lanka

NepalBangladesh

Zambia

Tanzania

NigeriaGhana

Australia

Indonesia

Malaysia

Sudan

Kenya

Syria

Dubai

India

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THE SWARAJ WAY OF SELLING

The Swaraj Way:

Has a simple, logical structure.

Will give consistent results.

Will make us more productive.”

The 3 milestones for a customer in tractor buying? 1st Milestone: When the customer is certain he has the need for a tractor

2nd Milestone-When he is convinced which is the right tractor for him?

3rd Milestonehe commits his purchase, convinced he is getting the right terms for the tractor he has chosen

The 6 steps of the Swaraj Way:-Step 1: Prepare like a Professional

Step 2: Raise the Customer Spirit Opening, RCSO

Step 3: Summarize status & state the Call Objective

Step 4: Achieve the objective through Questioning

Step 5: Summarize & Agree on the next steps

Step 6: Raise the Customer Spirit Close, RCSC

NPCC (New Prospective Customer Card)

The starting point for all Sales Processes. It is the card used by the sales person to obtain and note the customer details and enquiry. A good and effective sales person always has 5 to 6 enquiries in his pocket. The NPCC contains:-

Names and addresses of customers * wanting to exchange their existing tractors in the next 6 months.* Who are dissatisfied with the competitor tractors.* Who are dissatisfied with Mahindra tractors* Who are satisfied with Mahindra tractors and want to buy another one in the next 8 months

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* Who are satisfied with Mahindra tractors and want to upgrade to a higher HP model* Who do not have a tractor but want to buy one soon* Who hire out tractors but want to buy their own.* Who hire out implements and thus are prospective customers for implements

An NPCC bank gives the dealer and salesmen the right to choose and select

A correctly filled NPCC gives comprehensive data and knowledge of the prospect and the market

It is the starting point for all actions of the dealership includingBusiness strategies / plans for the month / qtr / yearIdentifying and addressing customer needs Travel plans of dealer personnelBudgeting sales promotion and service activitiesNPCCs become performance indicators of dealerships and dealer personnel when reviewed in context with coverage and loyalty ratiosNPCCs bring out major reasons for Winning or Loosing customersBrand and product preferences / issues if any can be identifiedCompetitor product perception and strategies

EVENTSThere are two types of promotional activities initiated by Swaraj Tractors for their brand promotion. They are

BTL (below the line)ATL (above the line).

ATL includes advertisements in magazines, newspapers, television and radio.BTL includes activities like Sahashtra, Mela, Mandi, Milan, Jalsa and STSC.There are number of activities performed under BTL. They are:

Sahashtra

Definition: The process of delivering and retailing large number of tractors in a single day (21/31/51/71/101) and making big impact in the market motivating whole dealer team and creating brand image.

Objective: To establish newly appointed dealers. To regain lost market share.

Scope: Dealerships which are newly appointed to be installed and established..Dealerships which have lost market share due to some reasons.

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Milan

Definition: Aggressive and planned way of contacting old customers, generate enquiries and promote exchange business.

Objective: To generate enquiries by contacting old PTL customers. To promote exchange business.

Scope: Dealerships which have large database of old customers.

Jalsa

Definition: A form of a road show where a special discount is offered to customers.

Objective: Showcasing “Swaraj” spirit to all through celebration and belongingness.

Scope: Dealerships which are losing market share due to some reasons.

Mandi:

Definition: Road show similar to Jalsa but at a somewhat smaller scale.

Objective: Showcasing “Swaraj” spirit to all through celebration and belongingness.

Scope: Dealerships which are losing market share due to some reasons.

STSC (Swastha tractor, swasth chalak)

Definition: Mega goodwill after sales service event at big dealership where PTL market is strong.

Objective: To strengthen PTL service image. To increase workshop revenue through parts and service.

Scope: Dealerships which have good workshop with high PTL population.

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Mela (Swaraj mahotsava)

Definition: A brand building/ Brand recall exercise at big dealerships where PTL market is strong.

Objective: To strenghthen brand PTL recall. To regain lost market share at big dealerships.

Scope: Dealerships which are running good with high PTL market share. Dealerhips which were strong but have lost market share due to some reasons.

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37

CHAPTER IIIRESEARCH DESIGN &

METHODOLOGY

3.1 Introduction to Research Methodology-

Research Methodology comprises defining and redefining the problem,

formulating hypothesis or suggesting solution, collecting, organizing and

evaluating the data, making deduction and reaching to conclusions and

determines whether the formulated hypothesis is right and wrong.

Research Methodology is a way to solve research in study and solving

research problems along with logic behind them are defined through

research methodology. Thus while talking about research methodologies

we are not only talking of research methods but also consider the logic

behind the methods.

During my project, I collected data through various sources primary & secondary.

.

3.3 Research Design –

The research design is of Descriptive Type. Descriptive research, also

known as statistical research, describes data and characteristics about

the population or phenomenon being studied. Descriptive research

answers the questions who, what, where, when and how...

Although the data description is factual, accurate and systematic, the

research cannot describe what caused a situation. Thus, Descriptive

research cannot be used to create a casual relationship, where one

38

variable affects another. In other words, descriptive research can be said

to have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical

calculations. Often the best approach, prior to writing descriptive

research, is to conduct a survey investigation. Qualitative research often

has the aim of description and researchers may follow-up with

examinations of why the observations exist and what the implications of

the findings are.

Research InstrumentInitially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be convenient.

3.4SAMPLING METHODOLOGY:-

B) Sampling UnitSample size was 30 Foreman’s of Distt Ferozepur which includes customer Satisfaction

C) Sample sizeThe sample size was 30 Foreman in Distt Ferozepur

D) Sampling AreaThe area of the research was Distt Ferozepur.Sampling Technique

39

3.5TOOLS USED:-

If one wishes to find what the prospects think or know, the logical procedure is to ask them. This has led marketing researchers to use the questionnaire technique for collecting data more than any other method. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaire were structured non disguised questionnaire because the question which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant.The questionnaire was non-disguised because the questionnaire was constructed so that the objective is clear to the respondent. The respondents were aware of the objective so that they know why they were asked to fill the questionnaire.

3.6 Sources of Data Collection-

A) Primary source includes:-

1) Discussion with branch manager

2) Discussions with Foreman of the Distt.

3) Live trading in the market

4) Data collected from questionnaire.

B) Secondary source includes:

1) Books related to Marketing Management

2) Web sites were used as the vital information source

3) References given by Manager.

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3.7 LIMITATIONS OF STUDY

A few limitations and constraints came in way of conducting the present

study, under which the researcher had to work are as follows:

Ø      Although all attempts were made to make this an objective study,

biases on the part of respondents might have resulted in some

subjectivity.

Ø      Though, no effort was spared to make the study most accurate and

useful, the “sample Size” selected for the same may not be the true

representative of the Company, resulting in biased results.

Ø      This being the maiden experience of the researcher of conducting

study such as this, the possibility of better results, using deeper statistical

techniques in analyzing and interpreting data may not be ruled out.

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PROJECT

On

Mechanical

Research

OBJECTIVE of THE RESEARCH

42

1. To study the market survey for purchase of tractors.

2. To study the customer awareness regarding Swaraj Tractors.

3. To study the major market leader among various market

payers.

4. To study consumer’s satisfactions towards purchased

tractors.

5. To study the various problems faced by customers in their

tractor.

Mechanical Research

43

I have conducted mechanical research of Sawraj tractors.

During this in my training period I had visited many

workshops in different cities. I did my survey in distt.

Ferozpur. Jalalabad, Guru Har sahai, fazilka and in

Ferozepur cantt. At the workshops I have collected a lot of

data about Swaraj tractors. They have told me about

features and problems of Swaraj tractors. They have also

told me that how will Swaraj improve its quality. Swaraj

Company is in top five tractor manufacturing companies. It

has a quality which is not in any other tractor. It is the

diesel tractor.

Now I will told about my visit and experience during

the survey period. In distt Ferozepur I have conduced more

than 30 workshops. In my research I have collected the

relevant information about Swaraj tractors. They had told

me:-

What the customer’s requirement?

What they want?

What are the problems that they often face?

They have also told me the features of Swaraj but the

most important thing which they told me, the reason for

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which the sale of Swaraj is going down or not equal than

other tractors. They told me that the company should must

listen the problems of tractors and then take a correct action

to improve the efficiency of tractors. The company must

give the training to the agency Forman so that they will

improve the problems that are often occurs before them

Problems

In distt Ferozepur the Forman told me some major and

some minor problems about Swaraj tractors. So first of all

we discuss the minor problems.

Minor problems

The minor problems which occurs in Swaraj tractors are

their clutch , break, lift pump problems, lift air switch ,

power steering diesel tank , pipe leakage of power steering ,

spinder problems , duplicacy in material , low horse power

and fry clutch plate..These are the minor problems which

are explained below:-

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1) In clutch problems the clutch become out of work very

shortly. Because tractor is made to pull the material

like sand, soil and other agriculture material. And

when the farmer ploughing in the field with tractors’

and the load is so high then the tractors could not work

properly as it struck out of the order. Actually all

models of Swaraj is DC (duel clutch). Those mean

half clutch to manage the tractor and half for PTO.

The farmers push the half clutch when he is working

in the field and rounding the tractor according to the

area of the field. The it make a problem that the clutch

will become loss very soon or it will not work

properly.

2) In break problem the breaks are soon make a problem

in work. The distt. Ferozepur is a flood area means its

land has more moisture than other areas. When the

farmer is working in the fields the water gone in

breaks and then the ladder of breaks would jam. Or it

would not work any more so the tractors do not work

properly. This problem also occurs in dry wheel

breaks.

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3) The third problem is of its lift problem. It is one of the

main problems in Swaraj tractors. When the lift is

lifted over load it would not manage the load then its

pump create problem as its pump leakage oil. The

company told the lifting capacity of tractor is high but

in actual the capacity is not that as the company told.

Like other tractors Swaraj has not much lifting

capacity.

4) In Swaraj the model 855 power steering there is a

problem of leakage in diesel tank. It’s not a big

problem for the company. The agency holder told the

inspection officer about this problem yet there is not

taken any kind of action. The diesel tank is leaks even

the tractor is new. The farmer has complaint it. It will

cause decrease in sale of Swaraj tractor. The Forman

of agency are not so trained that could solve this type

of problem. But they do their best to satisfy customers.

5) There is also one more problem in power steering

tractor. It is the pipe leakage in hydraulic pump of

power steering. In power steering tractor every

movement is base on power. When engine start all the

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movement start working. There are pipes which gives

oil to all parts which are working. But in a very short

time it starts leaking. The Forman has to face problem

because the customer become in anger when this type

of problems occurs especially when the tractor is new.

So it’s not a big problem but the company is avoiding

this problem.

6) Now there is also a problem of duplicity in the

material in Swaraj tractors. Some of the workshop

holder told me that its parts design is shows that the

material is duplicate. Some told me that the parts of

Swaraj tractors are duplicate. Because the back side of

Swaraj tractor is same as compare to Swaraj tractors.

Also its parts look duplicate. Only the tag of Swaraj is

their but the affiance of Swaraj tractor’s parts are not

in that parts.

7) Low horse power is also a main problem in all minor

problems. It will cause in decrease in the sale of

Swaraj tractors. All though there is a lot of variety in

48

tractors of Swaraj yet they are not equal in affiance as

compare to other tractors. Let us take a example that

Swaraj tractor of 30 HP could not work more than

other tractor of 25 HP. That means the other tractors

do more work in less time as compare to Swaraj

tractors. We know that Swaraj is in top five tractor

manufacturing company yet there are some problems.

The workshop holder told me that the customer sold

the Swaraj tractor in a short time because of low

affiances of the tractors.

8) The last minor problem in Swaraj tractor is their fry

wheel clutch plates. They have a little type of ladder

on clutch plates. But these are not correctly fit on

plates so they need to fill kharad. Although the tractor

is old or the new one this type of problem is mostly

occurs in Swaraj tractors. The customer has to stay the

tractor on workshop for two days minimum.

Major problems

49

The major problems that occur in Sawraj tractors are

their engine problem, gear problem, spare parts problem

and hub problem. Now we discuss the major problems as

below:-

1) In engine problem the engine break down the whole

work. Engine repair need 4 to 5 days to recover.

Mostly what happens that Swaraj tractor took heat in

short time. There is a button in air clyinder. When the

tractor took heat it was choked and on the meter board

it shows signal. But some time it could not do so. That

reason the engine broke down and then need repair of

whole engine. In season when there is a lot of need of

tractor in field then the Swaraj tractor gives that type

of problem. That is why the sale of Swaraj tractor goes

down.

2) Second major problem in Swaraj tractors is their gear

box problem. In gear box there are round zigzag type’s

gravies. When tractor works in field there is enough

need to change gear in very short time. But the

material of these gravies is very poor. The gravies

depreciated very soon. Also these gravies need more

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oil and more repair than other tractor. So that is a

major problem in Swaraj tractor because it took 4 ton

5 days to recover the problem.

3) And the third major problem of its spare parts

problem. Actually Swaraj has manufactured near

about 25 tractors. But it is not easy for a shopkeeper or

for agency holder to keep stock of whole tractors. So

there is a big problem of spare parts in distt. Ferozepur

area. So because of lack of spare parts the tractor

would stand in workshop unless the parts are not

available. The spare parts problem is one of the major

problems that would decrease the sale of Swaraj

tractor in distt. Ferozepur. Every farmer wants a

tractor which’s parts is easily available. But the

Swaraj tractor could not fulfil the requirement of

farmers. That is why Swaraj tractor is not in good sale.

First the Swaraj tractors parts are not easily available.

If available they have high in price and cheap in

quality. In distt. Ferozepur the spare parts problem is

the one of the major problem that cause there is not

much

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4) The last major problem in Swaraj tractor is their hub

problem. The tractors hub is made of the curvy

material. It is very poor material. The hub broke down

and tractor becomes in two parts. The agency holder

told me that they have seen 3 case of hub problem.

They had told the company. Yet there is not taken any

kind of action.

Problems said by workshop Forman

It is the graphically representation of distt. Ferozepur

52

workshop problems. In my survey of mechanical research

the problems which are faces are as below with their

percentage:-

1) 90% people have a problem of Diesel Problem.

2) 80% people have a problem of lift pump.

3) 75% said that they have problem with clutch.

4) 68% have a problem with gear box.

5) 55% said problem in pipe leakage of power steering

tractors.

6) 48% people said that the engine is not good.

Feature of Sawraj tractors

The Forman in distt. Ferozepur told me about the feature of

Sawraj tractors with their problems. Althoth there are many

problems in Sawraj tractors yet these tractors are very good

as compare to other tractor companies. The features of

Sawraj tractors are as below:-

1) Swaraj tractors are not costly as compare to other

tractors.

2) It has a power steering facility.

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3) Swaraj tractor has different type of models from 25

HP to 90 HP.

4) All models are available in mechanical and power

steering tractor.

5) Customer will choose the tractor according to their

uses.

6) Its seats are adjustable.

7) Now Swaraj has an air conditioner (A.C) model from

March 2010.

8) Its body is made of a ceramic metal which is durable

and has a good quality.

9) It is not so much heavy as compare to other tractors.

10) It has a good quality in its battery.

11) It shows best result in developed area like

Ludhiana, Jalandhar, Amritsar and hosiharpur.

12) In Swaraj tractor there is fuel affiance that is not

in other tractors. Swaraj is a diesel saving tractor.

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Q.What the customers are satisfied with

Sawraj?

55

Q: Is the spare part easily available?

56

Q: What horse power the customer require

the most and why?

57

80%

20%

Q: Does it work equal in field or at road?

58

Figure 1

In the survey of swaraj tractors 60% consumers purchase the swaraj tractors.

59

FINDINGS:

Sawraj855fe is less used because of more expenditure of oil.

Swaraj s spare part is easily available in the market. Swaraj tractor is also useful in the sandy areas because

of heavy back. In oldest model of swaraj there is dissatisfaction of

breaks. Swaraj tractors are mostly less heavy from front part. 40%people who do not use swaraj tractors mostly

use ford, Mahindra, hmt5911 and other tractors of

Hmt Company.

There are some competitors of swaraj tractors like ford, hmt5911, john Deere, sonalika, ford3600, escort etc

Recommendation and suggestions

60

1) The company should pay attention on the problems.

Because the customers want his tractor to be recover

as soon as possible.

2) The company must improve its quality.

3) The company must provide their spare parts in all

areas and to all agency holders. All spare parts of all

models.

4) The company should send their trainer to the agencies

to give advance training to the agency Forman and

also tell the market position and problems of tractors.

5) Change the pipes of power steering. As these pipes

will remove leakage.

6) Improve the quality and affiance in underdeveloped

areas.

7)Swaraj tractors need more advertisement.

LIMITATIONS OF THE STUDY

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Although I have done sincere efforts to collect authentic and relevant

information, the study may have the following limitations:

It was very difficult for me to get fulfill the forms because of

respondent's busy schedule and not providing me sufficient time to fill

the form seriously

Scope of study is limited to Few Villages which is exit in Dinanagar

only because of limited time and money. So results of study may not

be generalized.

This study is based on the assumption that responses are true and

factual although at times that may not be the case.

Though every care has been taken to eliminate such biases, but

considering the human factor the possibility of small bias having

come up cannot be ruled out altogether.

Conclusion

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Sawraj tractor is a good tractor. It has all qualities that are

necessary in a tractor. Sawraj has good sale in developed

areas. But low sale in underdeveloped areas. So the

company should take care of these things. Company must

improve its quality. And the major problem of spare parts

will remove as soon as possible. Because of this problem

the tractor often not ready for sale. Sawraj tractor has more

problems and less quality. The company must pay attention

on the problems which are faces by agency holders in

different areas. Sawraj export their tractors so it gives all

their attention on those tractors and then the quality of

domestic tractors goes down. Sawraj Tractor Company is in

top five tractor manufacture companies. But if it will solves

the problems it will reaches at no 1 position.

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Websites:

www.sawrajenterprise.com

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CHAPTER VIBIBLIOGRAPHY

www.sonalikaagro.com

www.icml.com

www.iafl.com

Search Engine :

www.google.com

Books :

Philip Kottlar: marketing management eleventh edition.

Kothari: Research Methodology.

Sontaki: marketing management kalayani publishers second edition.

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MECHANICAL RESEARCH

66

CHAPTER VII

APPENDIX

Q: How many tractors come for services/repair in a day?Ans:

Q: What are their problems?Ans:

Q: Is the problems are major or minor?Ans:

Q: What type of minors problems? Ans:

Q: What type of major problems?Ans:

Q: What customer said about Sawraj?Ans:

Q: Is the spare parts easily available?Ans:

Q: What horse power the customer require the most and why?Ans:

Q: Does it work equal in field or at road?Ans:

Q: Which type of tractors the customer prefer power or mechanical?

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Ans:

Q: What are the advantages& Disadvantage of power steering tractors?Ans:

Q: What are the advantages & disadvantages of mechanical steering tractors?Ans:

Q: After how much time it took heat?Ans:

Q: Is the company improving its quality and efficiency?Ans:

Q: What should company do to improve its quality of tractors?Ans:

Personal detail

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Name …………………………………………………………..

Workshop name ………………………………………………..

Address …………………………………………………….......

City ……………………………………………………………..

No. of workers …………………………………………………

Mobile no. ……………………………………………………..

Timing of repair ……………………………………………….

(Signature)

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