2010 “A STUDY ON CUSTOMER PERCEPTION ABOUT TRACTORS” FOR:ESCORTS LTD. Agri Machinery Group BY:BALJEET SINGH(MBA/1048/09) BIRLA INSTITUTE OF TECHNOLOGY(MESRA) ESCORTS LTD. 1 2010 FINAL REPORT ON CUSTOMER PERCEPTION ABOUT TRACTORS BY BALJEET SINGH COLL ROLL NO. -MBA/1048/09 ESCORTS LTD. Agri Machinery Group COMPANY GUIDE: Mr. ASHOUTOSH SINGH AREA BUSINESS MANAGER ESCORTS LTD. Agri Machinery Marketing Division ESCORTS LTD. 2 2010 AUTHORIZATION The report is submitted as partial fulfillment of the requirement of MBA Program of BIRLA INSTITUTE OF TECHNOLOGY, Mesra (Ranchi) Dated- /07/2010 BY:Baljeet Singh Place- Faridabad (Haryana)
ESCORTS LTD. 3 2010 INDEX CONTENT PAGE NO. 1. ACKNOWLEDGEMENT 2. EXECUTIVE SUMMARY 3. ABSTRACT 4. PREFACE 5. HISTORY OF TRACTORS A. HISTORY OF TRACTORS IN INDIA 6. INDUSTRY PROFILE A. AGRI MACHINERY B. INDUSTRY ANALYSIS 7. COMPANY PROFILE A. HISTORY OF ESCORTS B. THE ESCORTS SYMBOL C. PRODUCT LINE OF ESCORTS LTD D. PRODUCT AND MARKET E. CORPORATE SOCIAL RESPONSIBILITY F. THE EMERGENCE OF NEW PRODUCT IN ESCORTS G. PRODUCT LIFE CYCLE 8. MANUFACTURERS AND COLLABORATORS 9. RESEARCH OBJECTIVE 10. REVIEW OF LITERATURE A. CUSTOMER PERCEPTION THEORY 6 7 9 10 11 12 17 17 20 29 29 33 36 38 42 43 45 47 49 50 50 ESCORTS LTD. 2010 B. CUSTOMER SATISFACTION THEORY 11. HYPOTHESIS 12. RESEARCH METHODOLOGY 13. ROBUST RURAL LIQUIDITY SUPPORTS DEMAND A. INDUSTRY TRENDS BY REGION B. INDUSTRY TRENDS BY TRACTOR HORSE POWER (HP) C. SOME LONG-TERM DEMAND DRIVERS FOR THE INDUSTRY D. CURRENT OUTLOOK E. STRUCTURE OF THE INDIAN TRACTOR INDUSTRY F. MARKET SHARES OF VARIOUS PLAYERS G. MAJOR COMPETITORS H. DRIVERS OF TRACTOR GROWTH I. CHALLENGES FOR TRACTOR INDUSTRY 14. ANALYSIS AND INTERPRETATION 15. FINDINGS 16. LIMITATIONS 17. SUGGESTIONS & RECOMMENDATIONS 18. CONCLUSION 19. FORM A. DEALER FEEDBACK FORM B. CUSTOMER FEEDBACK/PERCEPTION FORM 20.
REFERENCE 116 83 92 97 99 109 111 63 64 66 53 67 69 70 71 72 74 78 78 80 111 113 ESCORTS LTD. 5 2010 ACKNOWLEDGEMENT ?You learn something every day if you pay attention.? it is often said. I realized it even better during my summer internship program. When I completed this journey, I may not have come this far without help, guidance and support of certain people who acted as guides, friends and torch bearers along the way. I express my deepest and most sincere thanks to Mr. ASHOUTOSH SINGH, Area Business Manager, ESCORTS Ltd Agri Machinery Marketing Division, without his help and support this project would not have been possible.
I express my gratitude to Mr. J P Sharma, Manager Human Resources of ESCORTS Ltd Agri Machinery Group, for giving me the opportunity to work with ESCORTS Ltd Agri Machinery Group. Interacting with Mr. SUNIL KUMAR, TBM for Haryana & Punjab, I learnt few tricks of professional management and I am sure the knowledge imparted will go in a long way in enriching my career. You learn more quickly under the guidance of experienced teacher. You waste a lot of time going down blind alleys if you have no one to lead you and this report eminently more understandable than it otherwise might have been, without the advice of my project guide Mr.
VISHAL MAHLY, TBM for Haryana. He helped me a lot while going through the whole project with all his efforts for the successful completion of the project. Last but not the least, I take this opportunity to express my sincere thanks to everyone who has directly or indirectly helped me in completing the project successfully. ESCORTS LTD. 6 2010 EXECUTIVE SUMMARY: Indian tractor market is through a very crucial period. Being the largest tractor market in the world in unit terms, it is going to witness tremendous competition of the kind it has not seen till now.
The various factors, which are a concern for Escorts in this war of competition, are: ? Reaching of saturation point as far as fresh buyers are concerned. ? Low farm mechanization practices. ? Inadequate credit practices being promoted. ? Farm income getting stabilized. ? These factors are to overcome to push the tractor sales. The other players competing with ESCORTS are M&M, ITL, EICHER, HMT, PTL, TAFE, NEW HOLLAND, STANDARD, JOHN DEERE, PREET TRACTORS, SAME tractors, INDO farm tractors, PANTHER etc. ESCORTS which is the market leader in palwal distt. as per by the survey conducted, than comes M&M which at second position in the distt. then comes ITL which is at third position & at fourth position is EICHER. M&M, ITL and EICHER which are the toughest competitors to ESCORTS have gained much higher popularity with its survey work. The reason behind is that farmers over here prefer low cost & low horse power tractors with high fuel efficiency. During the course of my training, I have tried out the follo wing: ? Competition in terms of market share among the players. ? Dealer perception of the tractor industry. ? Customer perception of the tractor industry. ? Problems and reasons for the Escorts downfall. promotion activities to increase the market share. Combining all the survey data from questionnaire, showed that: ? An Escort suffers from several critical advantages & disadvantages against its main competitors. ESCORTS LTD. 7 2010 ? Power or pulling capacity of tractor is the single most important issue in majority of cases when farmers make their choice among different models. ? Competitors providing more features at low cost than Escorts tractor. ? Irregular up-shift pattern of all Indian tractors. ? After sales service and better resale value is the most criteria for the existing customers of tractors. There is an opportunity in terms of second hand tractors sales in the market rising as compared to new ones. After identification of these problems I have tried to recommend various strategies and methods at both the firm and dealer‘s front so as to increase the tractor sales. The limitation of the project is that it is confined to a smaller area, which may not be a proper representation of a country as a whole but can represent the Palwal district, further research can be made in different states to get a clear picture of the market in India. ESCORTS LTD. 8 2010 ABSTRACT
With rapid development of Tractor industry companies are realizing the significance of customer- centered philosophies and are turning to quality management approaches to help manage their businesses. Competitiveness and search for profits have called more attention towards customer? s satisfaction and increased the interest on the topic of service quality. The main objective is to assess quality service dimensions that are delivered through the perspectives of managers and customers. Project has been performed in ESCORTS LTD. Agri Machinery Group in Faridabad (Haryana). Company is a Tractor manufacturer who sells tractors across the world.
ESCORTS is one of the largest tractor manufacturer of India. The data has been collected by developing a questionnaire based on the service quality dimensions considered by the customers, customer perception, dealer perception and information was analyzed to get the desired results. The result of this study shows that on pricing, features and fuel consumption are the areas on which company need to pay attention. Responsiveness and assurance were found one of the most relevant factors considered by the company and customers, respectively. Quality improvement initiatives were proposed to enhance the service rendered by the dealers.
The paper concludes that there are similarity among the perspectives of dealer and customers with regard to quality dimensions and suggests further work to continue this research. ESCORTS LTD. 9 2010 PREFACE The tractor is one of the most important and easily recognizable technological components of modern agriculture. Its development in the first half of the twentieth century fundamentally changed the nature of farm work, significantly altered the structure of agriculture, and freed up millions of people to be absorbed into the rapidly growing manufacturing and service sectors of the country.
A tractor is basically a machine that provides machine power for performing agricultural tasks. Tractors can be used to operate a variety of farm implements for plowing, planting, cultivating, fertilizing, and harvesting crops, and can also be used for hauling materials and personal transportation. In the provision of motive power, tractors were a replacement for human effort and that of draft animals, both of which are still used extensively in other parts of the world. The tractor proved to be an excellent replacement for the cattle in ploughing, soil preparation, planting, and cultivating tasks for a wide variety of field crops.
In addition, the tractor was fully capable of providing power for mowing hay and for harvesting of wheat and other small grains. FEATURES: Design simplicity. Improved performance with reduced cost. High maneuverability due to small size and small wheel base. The fuel consumption, which is comparatively low and low maintenance cost, adds to the economy. Adjustable wheel base to meet the requirement of inter culturing operation in different crops. Ergonomically Designed. Better traction, greater control, stability and safety. Durable, strong, reliable. ESCORTS LTD. 10 2010 HISTORY OF TRACTORS
The invention of tractors drastically transformed the agricultural industry. They altered the way farming had been done for countless tears, during which only minor improvement has been made. The new machinery enabled the production of vast amounts of food that leading to great technical progress of the twentieth century. The first powered farm implements in the early 1800s were portable engines – steam engines on wheels that could be used to drive mechanical farm machinery by way of a flexible belt. Around 1850, the first traction engines were developed from these, and were widely adopted for agricultural use.
The first tractors were steam-powered ploughing engines. They were used in pairs, placed on either side of a field to haul a plough back and forth between them using a wire cable. Where soil conditions permitted (as in the United States) steam tractors were used to direct- haul ploughs, but in the UK and elsewhere ploughing engines were used for cable- hauled ploughing instead. Steampowered agricultural engines remained in use well into the 20th century until reliable internal combustion engines had been developed. After graduating from the University of Wisconsin, Charles W.
Hart and Charles H. Parr developed a two-cylinder gasoline engine and set up their business in Charles City, Iowa. In 1903 the firm built fifteen “tractors”. A term with Latin roots coined by Hart and Parr and a combination of the words traction and power. The 14,000 pound #3 is the oldest surviving internal combustion engine tractor in the United States and is on display at the Smithsonian National Museum of American History in Washington D. C. The two-cylinder engine has a unique hit-and-miss firing cycle that produced 30 horsepower at the belt and 18 at the drawbar.
In 1892, John Froelich built the first practical gasoline-powered tractor in Clayton County, Iowa. Only two were sold, and it was not until 1911, when the Twin Cit y Traction Engine Company developed the design, that it became successful. In Britain, the first recorded tractor sale was the oil-burning Hornsby-Ackroyd Patent Safety Oil Traction engine, in 1897. However, the first commercially successful design was Dan Albone’s three-wheel Ivel tractor of 1902. In 1908, the Saunderson Tractor and ESCORTS LTD. 11 2010 Implement Co. f Bedford introduced a four-wheel design, and went on to become the largest tractor manufacturer outside the U. S. at that time. While unpopular at first, these gasoline-powered machines began to catch on in the 1910s when they became smaller and more affordable. Henry Ford introduced the Fordson, the first mass-produced tractor in 1917. They were built in the U. S. , Ireland, England and Russia and by 1923, Fordson had 77% of the U. S. market. The Fordson dispensed with a frame, using the strength of the engine block to hold the machine together.
By the 1920s, tractors with a gasoline-powered internal combustion engine had become the norm. HISTORY OF TRACTORS IN INDIA:- As commercialization of agriculture grew in intensity in the mid to late 1800‘s the British Raj and the local legislatures and provinces began investing in agricultural development through support and establishment agricultural research farms and colleges and large scale irrigation schemes yet the level of mechanization was low at the time of independence in 1947.
The socialist oriented five year plans of the 1950‘s and 60‘s aggressively promoted rural mechanization via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite this aggressiveness the first three decades after independence local production of 4-wheel tractors grew slowly. Yet, by the late 1980‘s tractor production was nearly 140,000 units pe r year and by the late 1990‘s with production approaching 270,000 per year, India over-took the United States as the world’s largest producer of four-wheel tractors with over 16 national and 4 multinational corporations producing tractors today.
Despite these impressive numbers FAO statistics estimate that of total agricultural area in India, less than 50% is under mechanized land preparation, indicating large opportunities still exist for agricultural mechanization. ESCORTS LTD. 12 2010 A PERSPECTIVE 1945 to 1960:? War 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.
The Beginning (1961-1970):? Government emphasis on industrialization entrepreneurs invited to set- up units and imports restricted. ? Five units setup in private sector all with following collaborations:EICHER TRACTORS LTD. TAFE GUJARAT TRACTORS LTD. ESCORTS LTD. MAHINDRA AND MAHINDRA 1960 1961 1963 1964 1965 ? 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.
Second Phase (1971-1980):? The 18 Applicants approach government- only 6 establish units. ESCORTS TRACTOR LTD. HINDUSTAN MACHINE TOOLS 1971 1971 ESCORTS LTD. 13 2010 – PUNJAB TRACTOR LTD. KIRLOSKAR TRACTOR LTD. PITTIE TRACTOR LTD. HARSHA TRACTOR LTD – 1974 1974 1974 1975 ? Although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. ? Escorts Ltd. began local manufacture of Ford tractors in 1971 in collabora tion 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. The Maturing Years (1981-90):? A further manufacturers began production during this period but only bajaj & vst survived in the increasingly competitive market place: ? ? ? ? ? ? AUTO TRACTOR LTD. PRATAP STEEL ROLLING MILL VST TILLERS UNITED AUTO TRACTOR LTD. BAJAJ TEMPO LTD. ASIAN TRACTOR LTD. 1981 1983 1983 1986 1987 1989 ? 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 1980‘s mainly to countries in Africa. The Competitive Era (1991-1999):? More new units set- up during this period: ESCORTS LTD. 14 2010 ? ? ? ? ? ? CAPTAIN TRACTORS PVT. LTD. INTERNATIONAL TRACTORS LARSEN AND TOURBO LTD. NEW HOLLAND TRACTOR GREAVES LTD. INDO FARM – 1994 1998 1999 1999 1999 1999 ? 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. ? 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 t he manufacture of 35-65 hp tractors at a lant in Pune, Maharashtra and Greeves Ltd will produce Same tractors under similar arrangements with Same Deutz-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. More Competitive Era (1999 to Present):? More new companies in competition: ? ? ? STANDARD TRACTORS PREET TRACTORS BALWAN TRACTORS 2000 2002 2004 15 ESCORTS LTD. 2010 ?
MARS FARM EQUIPMENTS LTD. – 2005 ? Mars farm equipments ltd. Started producing mini tractors within the range 10-25hp with brand names marshal, captain(25hp), trishul(10hp). ? 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 misuse 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. ? In 005, Tractors and Farm Equipment Ltd (TAFE), part of the Chennai-based Amalgamations group, has taken over Eicher Motor‘s tractor business for Rs 310 crore. ? But by 2006 sales once again were down to 216,000 and now in 2007-08 have slid further to just over 200,000. ? Mahindra & Mahindra had acquired a majority stake in Punjab Tractors Limited (PTL) in early 2007. ? In 2008,Mahindra and Mahindra (M), has acquired Yancheng Tractors, the fourth largest tractor manufacturer in China (in terms of FY2008 volumes), to improve its presence in the country. . ESCORTS LTD. 16 2010 INDUSTRY PROFILE
AGRI MACHINERY:The Indian tractor is dominated by low price, rugged, versatile and low to medium powered tractors the main reason being the inability of farmer to invest in farm mechanization, tractors are categorized on the basis of horse power(hp) of engine. In India the popular range of tractors is 20-45 hp compare to 60 hp in Europe and 90 hp in USA. Though large tractors are economically unavailable in India but more recently highly power tractors are also being sold in states like Punjab, tractors available in India are one fourth of similar power tractors internationally are in developed countries.
Availability of the credit is the most crucial factor impacting tractors demand, as Indian 95% of the financed by bank credit at confessional rate. Increase use of irrigation facilities, shift towards outcropping promotion of cooperative and high investment in agriculture also include to higher tractor demand India is the world‘s largest market in tractors since 1996. Escorts have played a pivotal role in the agricultural growth of Indian for over five decades. One of the leading tractors manufacturers of the country, Escorts produces tractors in the 30-45 HP and above range and has already sold over 11 lac tractors. Its ractors are marketed under three brand names, viz. Escorts, Powertrac and Framtrac. Escorts brand of tractors are symbolic of reliability and trust and enjoy the confidence of the farming community for the last 40 years. Powertarc brand of tractors are the most fuel-efficient tractors in their respective categories that offer excellent value for money and have helped the farmers improve their respective categories that offer excellent value for money and have helped the farmers improve their quality of life. Framtrac brand are the most powerful premium range of tractors that give maximum productivity to the farmers.
Spanning these three brands, the company has a full range of tractors to cater to the domestic as well as overseas markets. The company is developing state-of-the- highly fuel efficient with the assistance of AVL of Austria and has also entered into a joint venture with carraro SpA of Italy for the manufacturing of transmission and axles. ESCORTS LTD. 17 2010 To study the competition in the industry, one has the first look at the market segmentation based on hp the industry can be spilt into five classes on the bases of customer perception.
A B C D E E+ 0-25hp 26-35hp 36-40hp 41-45hp 46-55hp 55hp above ESCORTS, PUNJAB TRACTOR, TAFE, Among the major player (M, INTERNATIONAL TRACTORS & JOHN DEERE) have a presence of across the major segment. EICHER which was predominantly a player in the 21-30 hp segment has now move upward following the shrinking market in the low hp segment. To sustain the present momentum and to realize the future goals, Escorts has been investing towards strengthening new product development programmes and enhancement of R capabilities. Additionally, Rs. 50 crore has been invested towards modernization of its manufacturing facilities bringing them to international standards. The company has one of the most comprehensive distribution networks comprising of over 500 dealership/outlet and 30 area offices spread across the country. It has a manufacturing capacity of 98,940 tractors per annum. Escorts Agri Machinery Group is looking at forward and backward integration through food processing, food chains and genetic engineering. It will be expanding its product range by launching highly specialized tractors and draft implements.
During the year 2008-09, the turnover from Agri Machinery Business grew by 7%. The Agri Machinery Business remains the largest contributor to the balance sheet, contributing 87% of the turnover. Company leveraged its Knowledge Management Centre by -constantly innovating and creating new products of global quality standards at competitive prices. Escorts is transforming itself from being a tractor manufacture to becoming a complete farm solutions provider. Company is reinforcing its commitment to provide technologically innovative products for customer ESCORTS LTD. 8 2010 benefit. Farmtrac Europe received the best ne w model award at Polands XVIII National Agricultural Exhibition, the only tractor company to receive this award while Farmtrac and Powertrac models received first prize at NANE NANE Agricultural show in Tanzania. The Agri Machinery Division has signed a memorandum of understanding with Haryali Kissan Bazaar, which can aenerate sale opportunities for products and enables to facilitate farm mechanisation solutions to 100 rural areas.
Also launched Humrakshak We Care initiative, a unique insurance policy for farmers to provide them with personal accident cover In line to the vision for becoming a major player in sub 100 HP segment in the global markets, it have increased the reach from a major regional player to major global markets which stretch from North America to Australia covering all continents. Despite the strict competition by other major tractor manufacturers it have been able to gain constant volumes in the global market.
The products are marketed mainly in USA, central and Easter Europe through Poland, Ghana, Tanzania, Malaysia, Australia, Tunisia, Chile, turkey, Sri Lanka, Kenya, Bangladesh, South Africa and many other countries. It is a high volume 31-45 hp segment, it has a tight competition with M, PTL, ITL and TAFE with M holding the edge. To consolidate its presence in the overseas markets, the company has venture in the USA and Europe (Poland). It has recently acquired a majority stake in long agribusiness tractor distributing company in the USA and Pol-Mot Escorts.
Turkey, Australia, Bangladesh, Sri Lanka, Nepal, Kenya, Tanzania, South Africa etc. through its dealers network in these countries. Escorts have very ambitious plans to expand the dealers networks in other potential countries in the coming year. Besides tractors the RR6 riding type paddy transplanter in association with Yanmar of Japan is the first offering of Escorts to the rice planters of India. Corporate Center Corporate Branch Manufacture Unit Marketing officers/Branch —-24 4 20 160 ESCORTS LTD. 19 2010 Dealers Manpower — 762 21927 INDUSTRY ANALYSIS:There are various analysis are being done to know both immediate and extended environment. PESTEL analysis: There are many factors in the environment that will affect any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help in analyze these factors we can categorize them using the PESTEL model. This classification distinguishes between political, economical, social, technological, ecological and legal factor.
By PESTEL analysis we can know about extended environment and key drivers of change of an organization. 1) Political factors: These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide, to what extent does it believe in subsidizing firms, what are its priorities in terms of business support and political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.
The political factors related to tractor industry are Government laid stress on the mechanization of agriculture with a view to boost food grain production. Therefore agriculture sector started receiving financial assistance. Subsidy on agricultural loans from government Change in taxation policy 100% FDI policy Regaining ? Agricultural dynamism? , a key goal of eleventh Five year plan ESCORTS LTD. 20 2010 2) Economical Factors: These include interest rates, taxation changes, economic growth, inflation and exchange rates. Economic change can have a major impact on a fir m’s behavior.
The economics factors related to tractor industry are: 95% of tractor sales are on credit. Credit is extended by commercial banks, state land development banks and regional rural banks. Cost of tractors in India is the cheapest in world . The cost of a finished tractor here is as much as the cost of gear box in developed countries. Hence there exists tremendous scope for exports. Detoriating foreign exchange situation in western country, poor buying capacity and comparatively cheaper import of second hand tractor from developed country reduces the export of tractor from India in recent days.
Less interest rate charged by banks for agricultural inputs Inflation may provoke higher wage demands from employees and raise costs Higher national income growth may boost demand for a firm’s products 3) Social factor: Changes in social trends like population increase can impact on the demand for a firm’s products and the industry as a whole. The social factors related to tractor industry are Due to land fragmentation farmers with small land holding are uying tractor There is an increase in awareness among the farmers for the need of farm mechanization and are keen to acquire tractor with the help of credit facilities from financial institutions There is need for more tilling due to depletion of moisture and repeated cultivation of land . It is precisely for this reason that the demand for tractors was well maintained even during a draught period Animal power available is too inadequate to meet power demand o f our farmers. Mechanized operations are preferred to eliminate drudgery and delay, also labor shortage during harvesting increased the use of tractor
ESCORTS LTD. 21 2010 More farmers are opting for multiple cropping over last decade. Country’s gross cropped area increased by about 4. 7%. This indicates the increased popularity of multiple cropping. 4) Technological factor: New technologies create new products and new processes. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Sometimes the technology reduces the life cycle of products.
The technological factors related to tractor industry are Accelerated acquisition of technology capabilities to raises productivity in agriculture. Continuous technological innovation Renewable energy development. Ex, coal gas renewable 5) Ecological factors: Ecological factors include the weather and climate change. Changes in temperature can impact on many industries including farming. With major climate changes occurring due to global warming, Acid rain, Green- house effect and with greater environmental awareness this external factor is becoming a significant issue for firms to consider.
The growing desire to protect the environment is having an impact on many industries, as environmentally friendly products and processes are affecting demand patterns and creating business opportunities. The ecological factors related to tractor industry are Irrigation facilities reduce reliance on the monsoon and allow for quick yielding varieties of food -grain . This reduces the cropping cycle to 3-4 months from the traditional 5-6 months. Reduced cropping cycle require deep tilling which translates into higher demand for tractors.
Strong monsoons, increase lending by nationalized banks which leads to farming of commodity prices money availability catapulted tractor demand. Global warming 6) Legal factors: These are related to the legal environment in which firms operate. In recent years the changes legal factors of developed countries affected firms’ behavior in other countries due to globalization. Legal changes can affect a firm’s costs if new ESCORTS LTD. 22 2010 systems and procedures have to be developed and demand if the law affects the likelihood of customers buying the good or using the service.
The legal factors related to tractor industry are Collaboration with government which shapes policy issues Agricultural policy Drivers of change: From the PESTEL analysis we can know the drivers of change : ESCORTS LTD. 23 2010 Factors Political Drivers of change Investment by government Extension of rural credit by government Subsidized by government Economical Heavily depend upon rural Bank clamped economy Credit availability credit. at Demand increases. down on Changes These drivers are making the market attractive. ffordable rate Global economy melt down 100% FDI policy High national income Taxation policy Social Land fragmentation Animal for agriculture Awareness More farmers opting Moderate effect multiple cropping Per capita consumption is low in India Technological High innovation Import of technology Coal and Gas renewable Ecological Monsoon Cropping cycle Global warming Agricultural animal Legal Collaboration government Agricultural policy with This players attracts the more technological High quality product ESCORTS LTD. 24 2010 DIAMOND Analysis: of a market.
The analysis is given below. This analysis is done to know the fairness and suitability Demand condition Customers are more demanding because there is a need of more production in less time, numbers of bulls for ploughing is decreasing and they can use the tractor for transportation purpose also. Good financial support for agricultural equipments. Factor market condition Rivalary This industry comprises of many players including 4 MNCs. There are big competitors like TAFE, M, PTL, ITL, John Deere and New Holand are competing in market which leads to a healthy competition.
Physical resources, financial resources, technological innovation, raw material and skilled human power are easily available. ESCORTS LTD. Related and supported industry The related and supported industry like casting industry, Forging part industry, Equipment industry, Battery industry, Engineer and Technological industry, Marketing agencies, Piston and Ring industry are available largely which leads to high quality product with low cost. 25 2010 FIVE FORCE analysis: From five force analysis we can know the industry structure and the opportunity and threats.
In is conducted to know about the immediate environment. The competitive structure of an industry can be analyzed using Porter’s five forces. This model attempts to analyze the attractiveness of an industry by considering five forces within a market. According to Porter (1980) the likelihood of firms making profits in a given industry depends on five factors: 1) Bargaining power of buyer: The stronger the power of buyers in an industry the more likely it is that they will be able to force down prices and reduce the profits of firms that provide the product.
For tractor industry: The consumer base of tractor is highly disbursed throughout India. Due to High switching cost tractors companies can compromise on quality and price Lack of awareness among farmers like pricing, offerings. Etc. There are a few, big buyers so each one is very important to the firm This leads to low bargaining power of buyer 2) Bargaining power of supplier: The stronger the power of suppliers in an industry the more difficult it is for firms within that sector to make a profit because suppliers can determine the terms and conditions on which business is conducted.
For tractor industry: The suppliers do not pose any threat of forward integration Though steel forms a major inputs , the tractor industry is not most important customer for steel industry Many number of supplier are there for tractor industry Switching cost from one supplier to another is less Hence bargaining power of supplier is less. ESCORTS LTD. 26 2010 3) Threat of Entry: The extent to which barriers to entry exist. The more difficult it is for other firms to enter a market the more likely it is that existing firms can make relatively high profits.
For tractor industry: The tractor industry is capital-oriented with intensive technology requirement Need of a large dealer network High switching cost Competitors are very reactive towards new entry Brand loyalty of existing brands is high in tractor industry Up to extent the existing companies have control over the suppliers High startup capital is required Hence the barriers to entry are high. These barriers are however moderated by 100% FDI policy 4) Threat of substitute: This measures the ease with which buyers can switch to another product that does the same thin.
The ease of switching depends on what costs would be involved and how similar customers perceive the alternatives to be. For tractor industry: There are no credible substitutes to the tractors The only option available is bull-plough Power-tellers very low power of substitute Hence there is low threat of substitute for tractor. 5) Rivalry: This measures the degree of competition between existing firms. The higher the degree of rivalry the more difficult it is for existing firms to generate high profits.
For tractor industry: The rivalry is extremely high owing to the consolidation that the industry is witnessing Entry of foreign players Continuous technological innovation ESCORTS LTD. 27 2010 Less merger and acquisition of tractor industry increases rivalries Opening of world market Five –Force analysis Porter 5 Forces Analysis Summary Snapshot http://en. wikipedia. org/wiki/Porter_5_forces_analysis Key players: Today there are many players operating into tractor manufacturing activity in the count ry.
However, about 90 per cent of market is shared among the top 5-6 players only. Mahindra and Mahindra continues to dominate the industry with close to 41. 1 per cent share, while other players like TAFE, Escorts, ITL and John Deere enjoys market share of 22 per cent , 14. 1 per cent , 8. 9 per cent and 7. 8 per cent respectively. TRACTOR COMPANY M&M TAFE ESCORT ITL John Deere OTHERS MARKET SHARE PERCENTAGE 41. 1% 22% 14. 1% 8. 9% 7. 8% 6. 1% ESCORTS LTD. 28 2010 COMPANY PROFILE HISTORY OF ESCORTS: 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 Minneapo lis 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. 949- 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. 959- Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts ESCORTS LTD. 29 2010 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. ? 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. nd 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 Faridabad. 1983- Escorts Tractors Limited (ETL) established a state-of-the-art research and development centre to spearhead newer breakthroughs in Fa rm Mechanisation and to maintain industry leadership. Line concept introduced for engine block ESCORTS LTD. 30 2010 machining. 11,000 ton floating dry-dock Escorts I launched. 984- 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. 990-91- 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. 1998- POWERTRAC series of tractors launched. ? MoU was signed with Long Manufacturing Company, USA for setting up a Joint Venture in USA. 999- 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- Divests stake in Carraro India Ltd for Euro 20 million. ? Set up new manufacturing facility in Rudrapur for manufacture of new range of railway equipment ESCORTS LTD. 31 2010 2007- Darby‘s Second Asia Mezzanine Fund makes Investment in Escorts Construction Equipment Ltd.
Infusion of Rs. 750 million to meet Escorts‘ ambitious growth plans in its construction equipment business ? Escorts signs up with IHI of Japan and Huata of China for marketing of their range of crawler and tower cranes ? Escorts Construction Equipment Ltd (ECEL) Launches TRX Series of Pick-nCarry Cranes in the 23T, 17T and 16T Category 2008- Escorts Construction Equipment Ltd. ties up with Singapore Technology Kinetics to market the world renowned ‘LeeBoy’ brand of equipment for road construction and maintenance purposes, complementing its existing range ?
Escorts Construction Equipment Limited (ECEL) expands Portfolio – Launches Fully Hydraulic Crawler Cranes ? Escorts Construction Equipment Limited ties up with Construction Industry Development Council to provide accredited training programs ? Powertrac 4455 marks the company‘s entry in the 4-cylinder tractor segment 2009-10- The Hon’ble High Court of Punjab and Haryana at Chandigarh has approved the Scheme of Arrangement between Escorts Agri Machinery Inc. , USA (“EAMI”) and Escorts Ltd. (“Escorts”) and their respective shareholders and creditors for merger / amalgamation of EAMI into Escorts. Escorts Construction Equipment Limited (ECEL), part of the Escorts Group, has signed an agreement with the Chinese Hunan Zoomlion International Trade Co Ltd for marketing the latter’s truck cranes in India. ? company recently signed a distribution agreement with M/S Manitou BF, SA Corporation of France for its Maniscopic range of telescopic handle rs and range of access platforms. ? Besides this, ECEL is introducing Wheel Loaders and Motor Graders for the Earthmoving segment by having an agreement with Xiamen Machinery Company Limited (XGMA) of China for marketing the products in India. Escorts launches Backhoe Loaders. ? Escorts Sets New Milestone, Crosses 11 Lakh Unit Mark Celebrates ? bond‘ with 11 lakh consumers, launches series of initiatives ESCORTS LTD. 32 2010 ? Escorts Limited launches FT-60 X-TRA Torque in Punjab and Haryana. ? Global tractor major eyes Morocco for its high-end premium tractor range Escorts Limited, a $600mn enterprise, launches FARMTRAC. ? Recently, Escorts wins Indian tractor industry‘s largest ever order, awarded US$40 Million order by Tanzania. THE ESCORTS SYMBOL A hexagonal nut (in red) representing a geometric perfection.
The nut has been a functional device that has stayed at the core of mankind‘s engineering adventures. In spite of modern technologies coming in, it still remains unarguably a symbol of technology and all that holds it together. Locked into the nut is a spanner (in white), the turning force for the symbol of technology. The two pictorial elements are configured together to form an ‘E’, a pneumonic for Escorts. A doctrine of corporate and engineering openness, the Escorts logo allows an aisle, a pathway through which new ideas can walk in any time freely, giving Escorts t he character to listen and absorb new and fresh thoughts.
The symbol with its three meanings makes a rebus or visual pun and is rendered in red, the color of energy and dynamism. Every time it is used, it represents the Escorts seal of quality and excellence. VISION:? GO GLOBAL? ?EVERY MAN IS THE ARCHITECT OF HIS FUTURE? MISSION:? WE STRIVE TO THE STRONGEST AND MOST RESPECTED ENGINEERING COMPANY OF THE COUNTRY ESCORTS LTD. 33 2010 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.
SALES & MARKETING OVERVIEW: Vision:- Create the “PULL” for AMG’s Products and Services such that we actualize our aspirations of sustained profitable growth. We will do this through appropriate Brand positioning and creation of Brand Value, which will focus on each of the 4 P’s of the Marketing Mix – Product, Price, Promotion and Place. Brand Propositions: Escorts AMG has three powerful and well accepted brands Farmtrac, Powertrac and Escorts, the brand propositions of which have been designed in a manner that they complement each other in the market place.
The 3 brands are based on distinct technologies designed to suit varied soil conditions and applications for agricultural and commercial usage. 34 ESCORTS LTD. 2010 We have institutionalized the “Proactive Approach” of identifying the latent needs of the customer and offering the right product design for the right application. The Offering: The Product offering to our valued customers is our Tri Offering of : Product Service Spares based on the foundations of Customer Relationship, Dealer Management and Innovation.
The Brand Propositions, our offering and the distinct technological advantages of our products are promoted in the market place through various ATL (Above the Line) and BTL (Below the Line) activities – which are arrived at scientifically through an iterative process. The Marketing efforts are deployed through the National Sales and Service Grid of: Over 1200 national dealers, sub dealers, distributors and stockists, backed effectively by systematic micro efforts for effective deployment right down to the village level. Over 200 sales offices strategically located across the country. Tractor sales to over 41 countries of the globe.
The Value Set of the entire Sales Effort is the 3 Pillars of Integrity, Self Esteem and Ownership based on the foundations of Transparency, Trust and Confidence. The Sales Management follows a Virtuous Cash Cycle and its important components are: Sales/Collection Channel Management Retail/Channel Finance CRM- This is the process of managing detailed information about individual customers and carefully managing all customer “touch points” to maximize customer loyalty. A customer touch point is any occasion on which a customer encounters the brand and product—from actual experience to personal or mass communications to casual observation.
CRM enables companies to provide excellent real-time customer service through the effective use of individual account information. Peppers and Rogers outline a four-step framework for one-to-one marketing that can be adapted to CRM marketing as follows: ? Identify your prospects and customers. 35 ESCORTS LTD. 2010 ? Differentiate customers in terms of (1) their needs and (2) their value to your company. ? ? Interact with individual customers to improve your knowledge about their individual needs and to build stronger relationships. Customize products, services, and messages to each customer.
Trade-In Supply And Logistics Commercial And Legal Customer Satisfaction is vital for us. We perform customer follow- up after a sale is made. Satisfaction ratings are ascertained. Similarly we evaluate our Dealers and Service Centres by inviting Customer feedback. This feedback is an essential part our efforts to serve the customer better and better. PRODUCT LINE OF ESCORTS LTD. (VEHICLE SEGMENTATION):- A ESCORTS TRACTORS ESCORT 325 JAWAN PLUS POWERTRAC PT 429 TRACTORS FARMTRAC TRACTORS B ESCORT 335 JOSH PLUS C D E E+ PT 434 PT 439 PT 445 PT 4455 FT HERO FT (34) CHAMPION (39) FT 45 FT 60
FT 65 FT 70 ESCORTS LTD. 36 2010 FACTORS CONSIDERING SEGEMENTATION AND TARGETING: Agriculture Income. Income Level. Soil (Fertility). Population. Climate. Infrastructure. STEPS IN SEGMENTING AND TARGETING MARKETS: 1. Form prospective buyers into segments 2. Form products to be sold into groups 3. Develop a market-product grid and estimate size of markets CRITERIA FOR PICKING TARGET SEGMENTS: SIZE: The estimated size of the market to determine whether or not it is worth going after. EXPECTED GROWTH: The size of the market may be small, but if it is growing significantly it may be worth going after.
COMPETITIVE POSITION: The less competition the more attractive the market. COST: of reaching the segment COMPATIBILITY: with organization‘s objectives & resources BOTTOMLINE: can we be successful there? ESCORTS LTD. 37 2010 PRODUCT AND MARKET :-FarmtracFarmtrac brand are the most powerful premium range of tractors that give maximum productivity to the farmers. Premium range – Powerful premium brand, 35 – 75 HP range Exported to the most advanced markets in the world. Well accepted internationally for its versatility. Designed for the demanding requirements of progressive farmers.
Machine with powerful features for maximum efficiency. A status symbol. FT HERO Superior technology Enhanced 34 Hp. FT CHAMPION Most powerful tractor in 39 Hp category. FT – 45 Powerful performance Optimum cost 42 Hp. FT – 60 Versatile. World Class 50 Hp. FT-60 X-TRA Torque FT – 65 EPI Toughest tractor for Hardest soil 55 Hp. FT – 70 Unparalleled in his class 60 Hp. ESCORTS LTD. 38 2010 Powe rtracPowertrac brand of tractors are the most fuel-efficient tractors in their respective categories that offer excellent value for money and have helped the farmers improve their quality of life.
Value range – Value for money, Fuel efficient, 30 – 55 HP range India’s No. 1 Economy Range – “Diesel Savers” Engineered to give spectacular diesel economy. The Diesel Saver technology – Great savings. PT-434 Best fuel efficiency in its class. 34 Hp category. PT-439 Best fuel efficiency, Lowest maintenance. 39 Hp category. PT-445 Utility and Economy 45 Hp category. PT-4455 Fuel efficiency and Power 55 Hp category. EscortsEscorts brand of tractors are symbolic of reliability and trust and enjoy the confidence of the farming community ESCORT 325 JAWAN PLUS Multi Purpose Tractor – 27hp category ESCORTS LTD.
ESCORT 335 JOSH PLUS Value for Money – 35hp category 39 2010 Implements & Trailers- spring Tyne Tiller Rigid Tyne Tiller 12 Disc Offset Disc Harrow 12 Disc Tandem Harrow 2 bottom MB Plough 3 bottom Disc Plough Rotary Tillers Rectangular Bailer Lubricants- SURAKSHA Genuine Engine and Gear oils for the complete range of Escorts tractors de veloped to suit varying temperatures and climatic conditions. Every drop of SURAKSHA embodies the excellence that Escorts has gained over 50 years experience in tractor manufacturing and reflects its keen understanding of the Indian farmer and his tractor. SURAKSHA” – the protective shield for the tractor – tailor made for enduring performance year after year. Construction EquipmentWith excellent hydraulics, power steering, equal forward and reverse gears, flat walk through platform and an eco friendly engine, the FARMTRAC 70 is engineered to deliver world class performance at the economy you value. Powerful productivity that gives you years of profitability. A powerful 60 HP engine delivers round the clock operating efficiency with minimum downtime and negligible maintenance. An improved traction and oil immersed multi-disc brakes contain slippage for better safety.
ESCORTS LTD. 40 2010 FARMTRAC 70 is a value-for money alternative to over featured, under utilised and more expensive specialised machines. The state-of-the art tractor converts into a powerful and versatile earth moving machine by attaching a front end loader/dozer, back hoe. Farmtrac 70 + Loader & Back Hoe Engines- ? G? Series Excellent in Performance Farmtrac 70 + Dozer Designed for 100% continuous operation and longer service intervals Highly fuel efficient / Low operating cost Class A1 governing with 4% regulation for stable operation in fluctuating load condition Low Noise and Vibration
Compact size Cooling system designed for extreme weather conditions Equipped with Pusher type fan for better cooling in Stationary application Meets CPCB Emission norms Fitted with Coolant expansion bottle – Does not require frequent topping up Easy and Low maintenance Quick start Plateau honed wet liners for longer life and low oil consumption and better serviceability 3 ring pack version Piston with ring carrier for top ring for I. Longer life II. Low friction & Higher fuel efficient Chrome Plated top piston ring for longer life & low lub oil consumption ESCORTS LTD. 1 2010 Valve stem seal for lower lub oil consumption Water pump with integral bearings and unitised seal for longer leakage free life of Pump Low cost of spares CORPORATE SOCIAL RESPONSIBILITY:-At Escorts Limited, we are committed to making a positive difference in the socio economic fabric of the rural communes where we operate in. Being in a position of advantage, we recognize our responsibility in fostering sustainable development in the rural communities.
We strive to earn the respect and trust of our stakeholders, be it the employees who work for us, the customers who buy our products or the environment that we work in. In the last two decades, Escorts has made a concerted effort in making the benefit of progress reach the backward section of the community. EmployeesEscorts Limited is committed to providing a safe, secure, fair and stimulating work environment to its employees that empowers them to not only make a meaningful contribution to the organization‘s performance but also helps in personal and professional growth of the employee.
The company has implemented systems that promote safety at workplace and have contributed to reductions in lost time injury rates. Educative seminars are conducted on a regular basis for workers where they are exposed to various training and skill development programmes including Fire Fighting demonstration & training, safety seminars etc. to euip employees to work safely. We also provide effective rehabilitation programs for our employees. At Escorts, health awareness drives are a regular occurrence where workers are given counseling on personal hygiene, olio awareness, eye care and general health. We also organize health check up camps for our employees and their families. For children of our employees, we regularly organize career counseling sessions to help build their future. ESCORTS LTD. 42 2010 CommunityAs a good corporate citizen, Escorts engages in activities that contribute to the society. The company has conducted numerous awareness generation campaigns in the rural areas on effective agriculture and horticulture practices.
The company has given assistance to farmers by making available certified seeds, fertilizers and pesticides for improved agricultural output, liaisoning with banks and district agencies for the generation of bank loans and government subsidies, or educating the farmers on preservation of food grains Besides this, Escorts has been promoting the ? Social Forestry Programme? in order to improve the environment in and around the villages of rural Haryana, where its factories are based.
Under this programme 8690 fruit trees and saplings have been planted over a land area of 25 acres and 19200 fruit plants have been distributed to farmers for growing orchards till date. Escorts has been taking active part in the ? Green Haryana Campaign? and thousands of trees have been planted on the National Highway to combat the menace of air pollution. Escorts has also joined hands with a number of external agencies and NGOs working in the field of community development. A complete programme on ? uality reproductive health care services? , covering 25 villages in the Faridabad District is being run with the able support and help of ? The Population Foundation of India?. Escorts also works in collaboration with the National Association for the Blind in the field of prevention of blindness. This programme includes activities i. e. administering vitamin A, free screening of the school going children, distribution of glasses and the like. Besides this, Escorts also allocates funds for other agencies, working in the field f improving rural environment, to run income generation programme, and upliftment of the rural poor. THE EMERGENCE OF NEW PRODUCT IN ESCORTS:– ? Escorts Limited launches FT-60 X-TRA Torque in Punjab and Haryana ,Punjab– March 11, 2010 An upgraded version of the Escorts FT-60 variant, the new model best suited for specialized applications offers higher power, improved breaking system and power steering ESCORTS LTD. 43 2010 Escorts Limited, India‘s leading tractor manufacturer, today announced the launch FT-60 X-TRA TORQUE, an upgraded version of its FT-60 offering.
The new and improved model, with higher torque is a far more powerful version with improved features for farmers in Punjab and Haryana. The tractor which has currently been launched in the states of Punjab and Haryana, will subsequently be launched in Rajasthan, Western Uttar Pradesh and Madhya Pradesh. Given the high usage of tractors, especially in North Indian states, the new upgraded version of the FT60 has been specially designed with features such as Higher Torque, Oil Immersed Brakes, Power Steering, Multi-Speed PTO & higher hydraulic lift capacity.
Aimed at providing comfort and increased performance, farmers will now be able to use FT-60 X-TRA TORQUE for all kinds of specialized applications such as laser levellers, rotavators, planters and heavy haulage applications. Speaking at the launch, Mr. Rohtash Mal, Executive Director and CEO, Escorts Agri Machinery Group said, ? The launch of an upgraded version of the FT60 has been long due. FT-60 X-TRA TORQUE has been specially designed keeping in mind the increased proliferation of tractor usage for specialized applications and heavy-duty implements & attachments.
The new variant of the FT60 is our endeavor at providing the farmer with a wide and intelligent choice of products which addresses their requirements for increasing agricultural productivity.? ? Global tractor major eyes Morocco for its high-end premium tractor range Escorts Limited, a $600mn enterprise, launches FARMTRAC –Morocco, April, 2010 Escorts Limited, India‘s leading tractor manufacturer, today announced its foray into Morocco by launching its high-end premium tractor range – FARMTRAC.
The company unveiled its four-cylinder offerings FARMTRAC 80 and FARMTRAC 80DT, at SIAM (the 5th International Agricultural Fair) being held in Meknes, Morocco. The company has taken on board FIRST MATERIEL as its authorized distributor in Morocco, who will be responsible for assembling the tractors, which will be imported from India in a semi knocked-down state. FIRST MATERIEL will also be marketing and promoting the FARMTRAC brand locally and will also ensure after-sales service support. ESCORTS LTD. 44 2010
Synonymous with reliability, the Farmtrac 80 and Farmtrac 80 DT, fitted with 75HP Perkins engines and Carraro transmission, are fuel efficient, have long serviceability and low maintenance cost. Keeping in tune with modern day requirements, the tractors have been designed for both agricultural and commercial applications and are compatible with a number of implements such as rotavator, cultivator, thrasher, reaper, baler and seed drills. The tractors meet the emission norms of the US and European markets. Escorts wins Indian tractor industry‘s largest ever order, awarded US$40 million order by Tanzania,To open two offices and set up service support in African market –New Delhi, July 05, 2010 Escorts Limited, India‘s leading tractor manufacturer, today set a new benchmark by winning Indian tractor industry‘s largest ever order for tractors. Valued at US $ 40 million (about Rs. 185 Cr) the prestigious order has been awarded to Escorts by the Government of the United Republic of Tanzania.
Escorts has been chosen to supply 1430 units of its premium range of powerful Farmtrac tractors to Tanzania which is implementing a national ? Food Sufficiency Programs? aimed at making it a Food surplus country. Against global average of 19. 7 tractors per 1000 hectare of land, Tanzania is estimated to have about 2 tractors per 1000 hectare of land. The tractors are being procured by Tanzania to impart a major thrust to farm mechanization and enhance agricultural productivity. PRODUCT LIFE CYCLE:-Product life cycle asserts four things.
Products have a limited life. Product sales pa ss through distance stages, each posing different challenges, opportunities, and problems to the seller. Profits rise and fall at different stages of the product lifecycle. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage. 1. Introduction stage: In Tractor business name place very important role till the time name is not known, it will not place itself in the market & hence tractor will not sale. ESCORTS LTD. 45 2010
In the introduction stage the focus is on sales rather than profit. Company tries to make people more aware about launching of the product so as to get maximum number of customers. Marketing strategies will be based on the features of the product & will try to expand market share. 2. Growth stage: In the growth stage the focus will be on impro