Punjab Tractors India

Ownership and Business Interests

Punjab Tractors Limited was incorporated in June 1970 and is part of the Mahindra and Mahindra Group of companies.

it is the third largest manufacture of tractors in India, with tractors being marketed under the Swaraj brand name. The manufacturing plants are located in Mohali, Punjab.

The acquisition of 43.5% of Punjab Tractors by Mahindra and Mahindra makes Mahindra, one of the biggest Indian automobile/tractor companies, with up to 40% of the Indian tractor market.

It was also a good move for Punjab Tractors as it now gives their tractors access to a number of overseas markets that they did not have before. One such market is the US, where now through the Mahindra US subsidiary they will be able to sell their tractors.

Punjab Tractor’s principal business activity is to the assembly, marketing and servicing of tractors. Their product variety includes agricultural tractors, rice trans-planters, self propelled combine tractor drawn agricultural implements, harvesters, forklifts, spare parts, gears, casting and accessories.

Punjab Tractors India has an installed production capacity of 60,000 tractors and harvester combines, 300 forklifts, and 10,000 castings. Over its 30 year history, the company has produced and sold 600,000 tractors.

Punjab Tractors a leading Indian automobile company has a production capacity of 60,000 tractors, from its two manufacturing plants in Chandigarh. The company currently operates four divisions, with 2202 employees and a network of 443 dealers in addition to having 281 supplementary bases.

In the year 2002, total tractor sales for Punjab Tractors crossed the 500,000 mark. In the financial year 2005 to 2006, Punjab Tractors witnessed a growth of 12% in pre tax profit. The Company also witnessed a 12% growth in market share in the largest selling horse – power tractor category.

Punjab Tractor’s main strength lies in the fact that its tractors are based on indigenous technology which has made them very successful in the local Indian markets.

Sales
Punjab Tractors have a major presence in the North of India where they are located and so are better know there by farmers. They command 95% of Punjab Tractor’s sales revenue is accounted for by tractors, with a market share of more that 18% as of October 1998. In the year 1998 to 1999, the company sold more than 22,000 tractors in the first half of that year.

Already the company is exporting its tractors to the US, Canada, Australia, South East Asia and various African countries. The company intends to develop its export market capabilities by developing export models from its current domestic tractor portfolio.