SUBMITTED TO: MS.

FAIZA REHMAN

SUBMITTED BY: ADEEL MEHMOOD ROLL NO. 004

AHMED SIAL ROLL NO. 058

NAGHMANA ASHFAQ ROLL NO. 106

SHUMAILA ASGHAR ROLL NO. 100

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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”. 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.

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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
Suggestions...............................................................................................18
Annextures.................................................................................................19
Bibliography.............................................................................................21

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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) 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

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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.
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

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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;
• 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.

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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 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.

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BOARD OF DIRECTORS
All decisions regarding:
1 New investments.
2 New borrowings.
3 Approval of annual/ half yearly/ quarterly accounts/ dividend/
bonus etc.
4 All management and operational decisions.

CHIEF EXECUTIVE
5 Overall controlling of the operations.

EXECUTIVE DIRECTOR
6 To manage all the business activities of the company.

COMPANY SECRETARY
7 To manage all secretarial jobs as required by the companies
ordinance.

TECHNICAL DIRECTORS
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.

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DIRECTOR FINANCE
11 To manage the all-financial matters of the company.
12 To manage/improve the management information system.
13 To manage the accounting, costing, taxation, auditing and all other
related matters.

GENERAL MANAGER PURCHASE

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

GENERAL MANAGERS/ MANAGERS ACCOUNTS

15 To manage the monthly, quarterly, half quarterly and annual
accounts of the company.

MANAGERS TAXATION
16 To manage all the matters related to taxation.

GENERAL MANAGER ADMINISTRATION

17 To manage the personal and the administration matters of the
company.

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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.
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.

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 STRENGTHS
• 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.

WEAKNESSES
• Methods used for forecasting personnel needs

• Some of the policies require to be updated

• Outdated training system

• Less space in office for employees

OPPORTUNITIES
• Use of motivational tools

• Use of more sources to attract labour force

• Use of new methods for forecasting

THREATS
• 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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BARGAINING POWER OF SUPPLIERS:
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.

BARGAINING POWER OF CUSTOMERS:

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.

THREAT OF NEW ENTRANT:

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.

THREAT OF SUBSTITUTE PRODUCT:

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.

RIVALRY AMONG EXISTING COMPETITORS:

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 ACTIVTIES

INFRASTRUCTURE: The Company has its own infrastructure to manufacture its

products and to launch them in market.

HR MANAGEMENT: 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.

TECHNOLOGICAL DEVELOPMENT: MTL is known for it’s advancement in technological

sector throughout the country yet the company is aiming to be better in that
sector.

PROCUREMENT: All the Purchasing material required to assemble a tractor is

bought at the most reasonable price the organization can have.

PRIMARY ACTIVITIES

INBOUND-LOGISTICS
OGISTICS: The Company uses different parts to make a tractor in a

special unit area.

OPERATIONS: All the operations are carried out within the organizations from
gear fitting to assembling engine and from small nuts to 5 feet tires.

OUTBOUND-LOGISTICS: After completing the process of manufacturing a tractor, it

is sent to the go-down along with other fully finished tractors

MARKETING AND SALES: The Market and sales is done through the dealers and
local correspondents of the company along with the formal methods of
Advertisement.

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

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• 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”

• 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

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 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.
• 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.

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• 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.
• 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.

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PRODUCT LIFE CYCLE:

ORGANIZATIONAL STRUCTURE:

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BCG MATRIX:

PORTER FIVE MODEL:

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VALUE CHAIN ANALYSIS:

• RAN MUHAMMAD SIDDIQUE (DIRECTOR PUBLIC RELTIONS & LABOUR) 0333-

4210551
• ZULFIQAR ELAHI (SENIOR MANAGER HRD)
• 0300-8440379
• KHALID SANDHU (SR.MANAGER MARKETING)
• 0300-8639827
• ANNUAL REPORT OF MILLAT TRACTORS LIMITED 2008

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