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L1S13MBAM2034
L1S13MBAM2039
BILAL MAZHAR
L1S13MBAM2013
DANISH AHSAN
L1S13MBAM2053
etc.)
5 Energy Crisis
Total
Weigh
Ratin
Weighted
t
.10
.12
.11
.09
.08
g
3
3
2
3
2
Score
.30
.36
.22
.27
.16
.13
.12
.08
.08
3
2
2
2
.39
.24
.16
.16
.08
1
.24
2.5
OPPORTUNITIES
THREATS
1. Declining Sales Forcast
The aforementioned factors played a pivotal role in contributing to the drag in overall sales of the
company. MTL booked 19,800 units in 2013-14 compared to 30,200 units in the preceding year,
reflecting a decline of 34%.
However, it is pleasing encouraging to note that the Company retained its market share of 64%,
maintaining its position as the industry leader.
2. Restricted Loaning to Farmers
Deliveries nosedived from 32,023 to 21,111 due to reduced bookings by farmers, restricted
loaning earlier in the year and energy crisis. The difficulties amplified by the increase in GST
and signals of tax review by Government taking a significant toll on sales in second half of the
year.
governments. Although ZTBL and other commercial banks enhanced tractor lending with 10,000
tractors, yet this could not tackle the unpleasant impact of price hike and absence of subsidy
schemes. Thus increase in GST along with the absence of subsidy schemes debilitated the buying
power of the farmers and resultantly industry sales observed significant decline.
5. Energy Crisis
The basic production input is energy which is under heavy crisis all over the country and the
company is facing various challenges to over come this shorfall of energy. One of the solution is
the company has standby generators for smooth production process at the expense of adding cost
to final product.
Streanghts
Weight
Rating
Weighted Score
.13
.52
.08
.24
Quality Management
.10
.40
Diversered Portfolio
.13
.52
Information Technology
.10
.30
Weaknesses
1
.12
.12
.10
.10
.08
.16
.09
.18
.07
.14
Total
2.68
STREANGHTS
1. Research & Development
A state of the art Green Engine Test Lab is fully functional now to test the emission compliant
green engines. This facility has opened vast avenues of export of tractors by us around the world,
which we are ready to explore. The company Export and trade agreement finalized with our
principal AGCO will also supplement our growth targets in the export segment. The Groups new
trading company TIPEG Intertrade JLT in Dubai has initiated its business activities to promote
exports and to cater import needs of MTL.
the machinery. Special arrangements have been made for the availability of filtered drinking
water for the employees. All the employees are insured under Group Life Insurance Scheme.
Health Policy
All the employees are got medically checked periodically through the Companys panel
Hospitals to diagnose diseases if any. In case some one is found suffering from some disease, the
Company provides him medical treatment at its own expenses or through insurance company.
Environment Policy
The Company has a separate horticulture department to make the environment pleasant, green
and full of flowers. The Company also participates in various competitions on horticulture
arranged by Government and other Institutions.
3. Quality Management
The Quality Assurance department is making incessant efforts to improve tractor quality.
Machinery has been installed and upgraded to test quality and durability of components in our
established laboratories, thus resulting in improved product quality ratings.
MTL has upgraded a gear-testing machine to detect defects in gears before installation. To
enhance the quality of products for export purposes Millat has purchased a new tractor Power
take-off test machine. This machine is capable of testing tractors up to 250hp, and is of same
make as the one being used at AGCO Brazil Tractor Plant. Equipped with special features such
as Engine Test System-ETS and system stored library of renowned Nebraska Test Laboratory
USA. It has test results of various international tractor brands available for comparative analysis
and graphical presentations.
Training and development of Human resource of QA is another area in sharp focus. Like the
previous year, this year too, an opportunity of training abroad at AGCO Brazil has been rendered
to 2 QA engineers. This is with the vision of producing better products through more trained
people and broadened knowledge base.
4. Diversered Portfolio
In order to fulfill the companys commitment to support the farming needs at the best possible
price, two new tractor models MF 350 Plus (50 hp) and MF 360 (60 hp) with upgraded technical
specifications have been introduced for small and medium sized land holding farmers. These
models have been appreciated by the farming community due to their features life power
steering, oil immersed disc-brakes, heavy duty straddle axle etc. The company with the inclusion
of new tractor models in its fleet offers eight tractor models from 50 hp to 100 hp range that best
suit our agro-climatic conditions, size of the farms and buying capacities of varius segments of
the farmers.
It offers a range of tractors from 50 horse power (hp) to 85 hp; diesel engines; diesel generating
sets and prime movers; and forklift trucks. It also provides agricultural implements, such as
various types of ploughs, farm trailers, lawn mowers, jib cranes, and agricultural loaders
In line with the companys commitment to improve mechanization level in the country, MTL has
introduced new machines and technologies, test and trials for new equipment in the areas of
grains harvesting, biomass, fodder bailing and land leveling are under way.
5. Information Technology
Millat has upgraded its IT infrastructure and a new data centre has been established to provide
enhanced surveillance and backup solutions. The prime focus of IT has been the reduction of
system downtime and availability of ERP system throughout the year and for this purpose a
Rapid Disaster Recovery (DR) plan has been built and its supporting hardware has been secured.
WEAKNESSES
1. Weak Retention Policy
The company is facing high turnover regarding human resuorce as most of the employees are
daily wagers and work on shifts on daily basis. The competitors offering of high wage rage to a
trained employee proveks the intetion to quite and join the competitors labor force.