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Our work is dedicated to our beloved Parents, teachers, brothers, sisters and all of our well wishers

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“To Him belongs the dimension of the Heavens and the earth, it is He who gives Life

and death and He has power over all things.” (Al-Quran) All acclamation to Allah who has empowered and enabled us to accomplish the task successfully. First of all we would like to thank our Allah Almighty who really helps us in every problem during the project. We would like to express our sincere and humble gratitude to Almighty who’s Blessings, help and guidance has been a real source of all our achievements in our life.

We would like to admit that we completed this project due to our parents who prayed for our success.

We also wish to express our appreciation to our supervisor Ms. Faiza Rehman who helped us a lot and introduced us to new dimensions of knowledge.

Last but not the least our team efforts, support, cooperation and encouragement showed by each members in the group with each other.

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Pakistan is an agricultural country and its major part of GDP

depends upon agricultural industry as forty-four percent of total

population is engaged in this sector making Pakistan to irrigates

three times more acres than Russia. Millat tractors limited is one of the

oldest friend of farmers of Pakistan producing tractor’s with

quality, efficiency, technology and efficient workforce. Currently

fifty percent of total tractors that are working in Pakistan have

been manufactured by Millat Tractors Limited, the rest of forty

nine percent are of Al-Ghazi tractors and one percent is of Indian

and Chinese. The reason behind the success of millat tractors is

the difference of technology they use to produce tractors from

their rivals and the production of main and most of parts of the

machine which is totally made under the roof of the organization.

Another factor that makes them a dominant organization in the

market is their strong and effective workforce which is able to

produce almost twenty-seven thousand tractors per year on a

single shift basis without using any kind of computer technology.

According to Mr. Khalid Sandhu (Senior Manager Marketing) the

demand is almost fifty-five thousand in the year two thousand

and nine but they would hardly be able to achieve a target of

thirty three thousand tractors. This is where this organization

lacks the most, “the computer technology in producing tractors”.

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With the help of using computer technology the company will not

only be able to produce more tractors per year but will also be

helpful for the workers as they have to do each work from joining

gear to assembling the whole body manually. Despite of all that

the Millat Tractors Limited is still at the top and have no rival to

compete for the market or to benchmark its finished products.

Dedication...............................................................................................1

Acknowledgement...................................................................................2

Executive Summary...............................................................................3

Contents....................................................................................................4

Mission & Vision Statement....................................................................5

Introduction...............................................................................................5

Product Life Cycle..................................................................................8

Organizational Structure.........................................................................9

Competitive Advantage........................................................................11

Benchmarking.........................................................................................11

Swot Analysis...........................................................................................12

BCG Matrix..............................................................................................13

Porter Five Forces....................................................................................14

Value Chain Analysis..............................................................................15

Problem Identification & Solutions........................................................16

Conclusion................................................................................................17

Recommendations....................................................................................17

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Suggestions...............................................................................................18

Annextures.................................................................................................19

Bibliography.............................................................................................21

Millat is a global group of companies, recognized for a range of

quality products with innovative design capabilities.

To be market leader in agricultural tractors and machinery, building

Company’s image through innovation and competitiveness, grow by

expanding market and investing into group companies, ensuring

satisfaction to customers and stakeholders and to fulfil social

obligations

Millat Tractors Limited (MTL) was established in 1964 to introduce and

market Massey Ferguson (MF) Tractors in Pakistan. An assembly plant

was set up in 1967 to assemble tractors in semi-knocked down (SKD)

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condition. The company was nationalized under Economic Reforms

Order in 1972 and started assembling and marketing tractors on behalf

of Pakistan Tractor Corporation (PTC) which was formed by the

Government for import of tractors in SKD condition. In 1980 the

Government decided on indigenization of the tractors and entrusted

this task to PTC. PTC transferred this role of indigenization in 1981 to

MTL. This was the turning point in the Company’s history and it went

about the task

Methodically and rapidly. The Company undertook this new role with

enthusiasm and in the spirit of national development and proved its

engineering capabilities by surprising the deletion targets set by the

Government. Just in one year's time, the company took a giant step

towards self-reliance by setting up the first engine assembly plant in

Pakistan.

The Company made a strategic decision right in the beginning to bring

those manufacturing facilities in-house for which capabilities did not

exist in the country and for parts which required high precision and

investment. Therefore, in 1984, sophisticated manufacturing facilities

for the machining of intricate components were set up. These were

previously not available in Pakistan.

Currently, critical components like Engine Blocks, Sump, Transmission

Case, Axle Housing, Hydraulic Lift Cover, Front Axle Support and

Centre Housing are all being machined most successfully in-house at

MTL from local sourced castings.

MTL have a firmly believe that producing to International quality

standards is the key to continued success and growth, and quality

control department converts this belief into reality. In 1992, the

company was privatized. The employees joined hands and took over

the management by winning an open bid.

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To maintain its leadership role in tractor manufacturing in the country,

MTL

Continues to look toward the future, to identify and exploit new

opportunities

And to consolidate existing ones. The Tractor Assembly Plant is part of

this philosophy.

This plant started its production in 1992. The establishment of this

modern plant not only increased production capacity to 16000 tractors

per year on a single shift basis but also provided a quantum jump to

the quality of the assembled tractors and pushed MTL into ranks of the

major tractor manufacturing companies of the World.

After successful takeover, MTL also acquired the management control

of Bolan Castings Limited (a Public Limited Company specializing in

intricate automotive castings) in partnership with employees of the

company, in 1993. The company has been the regular recipient of the

Corporate Excellence Award of Management Association of Pakistan

and the Top Companies Award of Karachi Stock Exchange, since early

eighties.

MTL'S Annual Report has been acknowledged as the Best Annual

Report by the Institute of Chartered Secretaries and Admin Association

of Pakistan for several years.

Millat Tractors Limited (MTL) is an ISO 9002 certified company for its

Assembly Plants (Tractor Assembly, Engine Assembly,

Industrial/Agricultural Products), Material Testing and Gauge Control

Laboratory. It is Pakistan’s leading engineering concern in the

automobile sector, that manufactures;

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Tractors, under licensing agreement with Massey Ferguson, UK

(AGCO, USA)

Diesel Engines, under licensing agreement with Perkins Engine,

UK

Diesel Generating Sets and Prime Movers

Forklift Trucks, under license from Anhui (Heli) Forklift Trucks

China and

A range of Agricultural Implements.

The company is also dedicated to customize its Diesel Generating Sets

and Prime Movers products as per customer’s requirement. The

company has spread its products throughout the length and breadth of

the country. Today the number of MF tractors made by MTL exceeds

250,000 while the total number of tractors in the country is

approximately 500,000, giving it a market share of above 50%. In

other words every second tractor in Pakistan is MF. This achievement

has been made possible only through the Company’s commitment to

Quality, After Sale Service, and Competitive Prices.

According to the analyst’s of Millat Tractors Limited, after

securing fifty percent of tractor market in Pakistan the company

has adopted a stable strategy to compete against its rivals.

Currently the company is at maturity state like its other

competitors in the market and like its competitors it is also

introducing new products to remain stable. Along with that the

company has increased it’s after sale services duration so that

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the customers will be more satisfy after selecting a Millat Limited

tractor.

Even though the company is at maturity state yet Mr.Zulfiqar

Elahi (Senior Manager HRD) thinks that they have very efficient

policies for their company for maintaining a stable state for their

organization and they are very much satisfied with the current

status and strategies of the company.

BBOARDOARD O OFF D DIRECTORSIRECTORS

All decisions regarding:

1 New investments.

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2 New borrowings.

3 Approval of annual/ half yearly/ quarterly accounts/ dividend/

bonus etc.

4 All management and operational decisions.

CCHIEFHIEF E EXECUTIVEXECUTIVE

5 Overall controlling of the operations.

EEXECUTIVEXECUTIVE D DIRECTORIRECTOR

6 To manage all the business activities of the company.

CCOMPANYOMPANY S SECRETARYECRETARY

7 To manage all secretarial jobs as required by the companies

ordinance.

TTECHNICALECHNICAL D DIRECTORSIRECTORS

8 To manage the operational activities of the company.

9 To improve the quality/standard of the products.

8 To suggest the modernization/expansion plans.

DDIRECTORIRECTOR F FINANCEINANCE

11To manage the all-financial matters of the company.

12To manage/improve the management information system.

13To manage the accounting, costing, taxation, auditing and all

other related matters.

GGENERALENERAL M MANAGERANAGER P PURCHASEURCHASE

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14To manage the local purchases and imports of the company.

GGENERALENERAL M MANAGERSANAGERS/ M/ MANAGERSANAGERS A ACCOUNTSCCOUNTS

15To manage the monthly, quarterly, half quarterly and annual

accounts of the company.

MMANAGERSANAGERS T TAXATIONAXATION

16To manage all the matters related to taxation.

GGENERALENERAL M MANAGERANAGER A ADMINISTRATIONDMINISTRATION

17To manage the personal and the administration matters of the

company.

Currently Millat tractors have to face only one major competitor in the

market for its product. Al-ghazi is the second major company that is

producing tractors in Pakistan. In a survey, total numbers of tractors

were about 500,000 while the population of tractors made by MTL

exceeds 250,000 remaining 250,000 were tractors from Al-Ghazi,

Indian and Tractors from China.

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This survey shows that MTL have a clear competitive advantage

in the market.

The excess demand of ML tractors depends upon its quality,

technology, availability of spare parts and after sale services

clearly make them a ruler over market.

MTL have the biggest network of dealers that are always on a

hand to sell tractors for the company. Their dealing network is

not only limited to Pakistan but also spreads through Afghanistan

The technology they use is far more superior as compared to

their biggest rival the Al-Ghazi tractors. Along with that they have

the more number of models having a reasonable price according

to the buying ability of every type of customers which makes

them an ultimate producer of tractors in the country.

As Millat Tractors Limited is producing most successful and most

efficient tractors in Pakistan, Having an international market as

well currently not benchmarking itself with any company in

Pakistan as they

Have the most superior and advance technology present in the

country

Along with skilled and hardworking labour.

SSTRENGTHSTRENGTHS

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Good employee safety and health system

A better system of communication

Unbiased or non-discriminatory actions

Concentration on training and development

Involvement of departmental heads in recruitment process

lets hire the best applicants.

WWEAKNESSESEAKNESSES

Methods used for forecasting personnel needs

Some of the policies require to be updated

Outdated training system

Less space in office for employees

OOPPORTUNITIESPPORTUNITIES

Use of motivational tools

Use of more sources to attract labour force

Use of new methods for forecasting

TTHREATSHREATS

Infusion of incompetent labour in work force

Government policies

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Massey Ferguson MF 260 “A multi-purpose tractor” due to its high

performance, fuel efficiency and immense power to do heavy tasks

makes it a

Star product for its company.

Another proved star for MLT is Millat forklift truck FD 30M1 under

license from Anhui Forklift Group (Heli) which is based on TCM

technology Japan and powered by Millat AD3.1524 engine empowering

it to lift 3 tons.

Massey Ferguson MF 240 claimed as the most popular tractor in

the country

Having 50 HP range from MLT is acting as a cow for its organization.

The Millat Generating Sets, MPG-25 (15kVA-25kVA) and MPG-42

(40kVA)

Both working manually are the “?” for MTL.

Messay Ferguson MF 385 4WD (Second edition of MF 385) was the

“?”

For MTL which later proved itself as a dog after having no demand in

the market for the company as the first edition had better working

abilities (As a response from customers) the then newly introduced

one.

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BBARGAININGARGAINING P POWEROWER O OFF S SUPPLIERSUPPLIERS::

The bargaining power of suppliers is low because there is only one

supplier who is supplying raw material to all the organization at

contract basis with the mutual co-ordination between them.

BBARGAININGARGAINING P POWEROWER O OFF C CUSTOMERSUSTOMERS::

The Customers have low bargaining power as there are only few sellers

of tractors in the market and the price of the product depends upon

the manufacturers.

TTHREATHREAT O OFF N NEWEW E ENTRANTNTRANT::

The threat of new entrants is low as the company’s that are already

exists have control over market and price strongly, so it would be

difficult to survive making a low threat for the current organizations

and MTL.

TTHREATHREAT O OFF S SUBSTITUTEUBSTITUTE P PRODUCTRODUCT::

Sometimes it happens when the trade between Pakistan and other

countries on tractors ad automobiles open to produce substitute

products on cheaper rates causing a high threat of substitute products

for the company. Examples are Indian and Chinese tractors.

RRIVALRYIVALRY A AMONGMONG E EXISTINGXISTING C COMPETITORSOMPETITORS::

There is a strong rivalry between MTL and AL-Ghazi tractors as the

difference of total number of tractors is 1% as MTL have 50% and Al-

Ghazi have49%

Of total tractors working in Pakistan. The rest of 1% is the Indian and

Chinese tractors

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SUPPORT ACTIVTIESSUPPORT ACTIVTIES

IINFRASTRUCTURENFRASTRUCTURE: : The Company has its own infrastructure to

manufacture its products and to launch them in market.

HR MHR MANAGEMENTANAGEMENT: : The Company has a strong HR network as up-to

date training, motivating and rewarding the workforce on efficient work

is the part of organization.

TTECHNOLOGICALECHNOLOGICAL D DEVELOPMENTEVELOPMENT: : MTL is known for it’s advancement

in technological sector throughout the country yet the company is

aiming to be better in that sector.

PROCUREMENTPROCUREMENT: : All the Purchasing material required to assemble a

tractor is bought at the most reasonable price the organization can

have.

PRIMARY ACTIVITIESPRIMARY ACTIVITIES

IINBOUNDNBOUND-L-LOGISTICSOGISTICS: : The Company uses different parts to make a

tractor in a special unit area.

OOPERATIONSPERATIONS: : All the operations are carried out within the

organizations from gear fitting to assembling engine and from small

nuts to 5 feet tires.

OUTBOUNDOUTBOUND-L-LOGISTICSOGISTICS:: After completing the process of

manufacturing a tractor, it is sent to the go-down along with other fully

finished tractors

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MMARKETINGARKETING ANDAND S SALESALES:: The Market and sales is done through the

dealers and local correspondents of the company along with the formal

methods of Advertisement.

SSERVICESERVICES: : The Company have a wide network of after sale services

Not using Computer technology.

Slow process of delivering tractors.

Less space for employees in Human Resource Department.

The company use to assemble the tractors manually which is time

consuming and slow thus the use of computer technology will not

only save the time but will also increase the total output of the

company.

Even though the customers can book their order via the website of

Millat tractors, dealers or can visit the company directly but the

procedure of delivering the product to the customer can take the

time of 6 months or more which annoys the customer very much.

So there should be at least 500 tractors on standby for the

customers to hand over the product or they should deliver the

product on the given date to the customer without delaying or as on

“First come first serve basis”

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The company should make more rooms for the employees working

in the Human resource department o that they could work more

efficiently and properly without any disturbance

MTL Claims to be a market leader in tractor manufacturing

industry thus it have all the required factors to be a successful

company in the market. Strong management, hardworking labour

force and dedicated staff are all the key factors that Millat

tractors have making it a strong competitor in the market. Thus

the company needs to adapt new policies and procedures like

introducing more products as their biggest rival Al-Ghazi tractors

is doing as the have recently launched a bike named as Al-Ghazi.

Millat tractors limited as a whole can be considered as an

ultimate organization working in Pakistan that has dominated a

large area of market with its polices and procedures even after

achieving a maturity state.

Having gone through the HR process and policies of the

company, We have reached the following conclusions:

All the policies need to be up dated.

For forecasting the future needs of manpower planning, the

company may use the advanced techniques e.g. computer

software, etc.

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Although the company is emphasising the training and

development; yet there is a dire need to update the training

programs to something like On-job training. Moreover, for

technical jobs simulation may also be used.

Although the system of communication of the company

includes Internet; yet there is a need to train the employees to

use this system aptly.

In order to attract a more diverse work force, the company

may use other advanced techniques like Internet, etc.

Employee confirmation depends upon the assessment report

of departmental head. This may be replaced with some better

assessment procedure.

In order to win over the employee loyalty, the company may

improve the salary administration system.

The company should implant a private intranet in its existing

systems of communications.

The system of communication may be made transparent so

that the employees may have the information about what is

happening around them. Moreover, it will also inspire a sense

The company should introduce new policies so that they could

remain themselves as a market leader.

Like the send their higher staff abroad to get high education,

they should send their most skilled labours so that they attain

the latest skills and help other workers by instructing them.

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Most of the tractors after finishing are placed under sun

without any kind of shelter from sun or rain, so it would be

better to make a shelter to cover them up and save them

from heat and water.

Millat tractors is currently producing tractors only through

labour force and assembling of almost every part in done by

hand which is very time costly, so using a computer

technology will not only increase the production output but

will also enhance the working abilities of workforce.

PPRODUCTRODUCT L LIFEIFE C CYCLEYCLE::

OORGANIZATIONALRGANIZATIONAL S STRUCTURETRUCTURE::

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BCG MBCG MATRIXATRIX::

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PPORTERORTER F FIVEIVE M MODELODEL::

VVALUEALUE C CHAINHAIN A ANALYSISNALYSIS::

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RRANAN M MUHAMMADUHAMMAD S SIDDIQUEIDDIQUE (D (DIRECTORIRECTOR P PUBLICUBLIC

RRELTIONSELTIONS & & LABOURLABOUR) 0333-4210551) 0333-4210551

ZZULFIQARULFIQAR E ELAHILAHI (S (SENIORENIOR M MANAGERANAGER HRD) HRD)

0300-84403790300-8440379

KKHALIDHALID S SANDHUANDHU (S (SRR.M.MANAGERANAGER M MARKETINGARKETING))

0300-86398270300-8639827

AANNUALNNUAL R REPORTEPORT OFOF M MILLATILLAT T TRACTORSRACTORS L LIMITEDIMITED 2008 2008

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