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Millat Tractors – paving way for mechanized farming

Lot of area in Pakistan is lying uncultivated which is boosting the tractors industry in Pakistan. Population is growing day by day hence increasing the need for food, clothing and shelter. Agriculture sector is the backbone of Pakistan creating opportunities for a prosperous country. Decrease in average yields is creating problem at the other end. Lack of mechanization techniques in agriculture especially machinery is pushing us backward in high production per acre. Use of agri machinery like modern tractors will increase the efficiency and will make harvesting processes faster.

The agriculture sector in Pakistan has been facing a number of major challenges over the last decade. As a result, the performance of this sector has been less than its potential in recent times. Consequently, agricultural growth has not benefited the rural poor in Pakistan to the extent it was expected. The other major factors underlying this underperformance include lack of mechanization techniques and a slow rate of technological innovation; problems with the quality, quantity, and timeliness of input supply; inadequate extension services and technology transfer; limited investment in construction, road maintenance, and market infrastructure; marketing and trade restrictions; pest and livestock disease problems; feed & fodder shortages; limited amounts of credit for agricultural production and processing; and lack of agriculture-specific loan products.

Millat Tractors are the market leader in sales and manufacturing of agricultural tractor. This company comes first in top five tractor brands in Pakistan. They are also manufacturing tractor operated implements for crop cultivations. Millat has the license of Massey Ferguson UK for manufacturing of their tractors. The company started working in Pakistan in 1964 and it was privatized in 1992. Massey Ferguson is one of the top tractor brands in the world. Their tractor models have a range of 50 to 100 HP in Pakistan. In the commercial segment, Millat is producing electric generators, prime movers, fork lifters, batteries etc. Millat tractors have the edge of products range over Al Ghazi Tractors.


Tractor sales are expected to retain the same trajectory in upcoming fiscal year provided that external factors do not shift significantly. Agricultural productivity is mainly dependent on availability of water supply and predictable weather shifts. Our water management and storage system could not keep up pace with the demand. Resultantly, our water storage is depleting and there is an emergent risk of water shortage. The effects of global warming have grown at a rapid pace and have affected Pakistan strongly. Weathers are now more extreme than ever. Without adequate water supply, our farmers will have a difficult time cultivating essential crops.

The principal activity of the company is assembly/manufacture of agri tractors for which components are procured from approximately 150 vending industries including group companies in the normal course of business. Bolan Castings Limited (BCL) and Millat Equipment Limited (MEL) manufacture intricate tractor components i.e., major tractor castings and gears & shafts etc respectively for which limited sources are available in the country. Millat Industrial Products Limited (MIPL) manufactures tractor batteries while tractors and components are exported through TIPEG Intertrade DMCC (TIPEG). In addition, components are imported through TIPEG for in house use by the company.

The company has also ventured into automotive sector with Nishat Group to introduce Hyundai automotive brand of vehicles. The total investment of Millat Tractors Limited in the venture is 18% of the paid up share capital. The company will continue to maintain its partnership with Nishat Group and plans to continue to invest in HNMPL as per agreed terms and conditions.

The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan

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