MILLAT TRACTORS LIMITED - THE MARKET LEADERS

—SPECIAL CORRESPONDENT, Lahore
Sep 26 - Oct 02, 2005

Millat Tractors Limited (MTL), an ISO 9002 certified company for its Assembly Plant and Material Testing & Gauge Control Laboratory, is Pakistan's leading engineering concern in the automotive sector. It manufactures tractors under a licensing agreement with Massey Ferguson, UK (owned by AGCO, USA): Diesel Engines in technical collaboration with Perkins Engines, UK; Diesel Generating Sets and Prime Movers; Forklift Trucks under license from Anhui Heli Co., Ltd. China and a range of agricultural implements. The company is also able to customize its products for specific requirements.

MTL products are available through a nationwide dealer network. The total number of MF units exceeds 250,000 while the total number of tractors in the country is approximately 450,000 giving it a market share of over 50%. In other words every second tractor in Pakistan is an MF tractor. This achievement has been made possible only through MTL's commitment to quality, after sale service and human resource development.

Millat Tractors has also played a pivotal role in transfer of technology and transformation of the fledgling light engineering sector into a robust, vibrant, quality conscious auto vending industry.

A SUCCESS STORY:

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 imported in semi-knocked down (SKD) condition.

In 1972, the company was nationalized under Economic Reforms Orders and renamed as Millat Tractors Limited. MTL started assembling and marketing tractors on behalf of Pakistan Tractor Corporation (PTC), which was formed by the government for import of tractors in CKD condition. In 1980 the government decided on indigenisation policy and entrusted this task to PTC. A year later, PTC transferred this role 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 surpassing the deletion targets set by the government. In 1982, MTL 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 investment and precision. Therefore, in 1984, sophisticated manufacturing facilities for the machining of intricate components were set up, previously unavailable in Pakistan. Currently, critical components like lift cover, front axle support and center housing are being machined successfully in-house. In 1992, the company was privatized and the employees joined hands and took over its management by winning an open bid.

To maintain its leadership role in tractor manufacturing in the country, MTL continues to look ahead, to identify and exploit new opportunities and to consolidate existing gains. The new Tractor Assembly Plant is part of this philosophy. Started in 1992, this modern plant has increased production capacity to 16,000 tractors per year on a single shift basis, provided a quantum jump to the quality of the assembled tractors and taken MTL into the ranks of the major tractor manufacturing companies of the world.

In 1993, MTL acquired the management control of Bolan Castings Limited (a public limited company specializing in intricate automotive castings), in partnership with employees of the company and in 2002, MTL established a wholly owned company named Millat Industrial Products (Pvt.) Limited to manufacture quality automotive batteries.

The company's progressive policies have led it to explore multiapplication of engines and tractors in areas other than farming. Mass production of Generating Sets (1994), three ton Forklift Truck branded as Millat, based on TCM technology, both using Perkins engines have been well accepted by the market.

MTL believes in providing best value for money to its customers. Complete customer satisfaction is its cherished goal. There is a constant endeavour at all levels of the organization to better the company's performance by offering upgraded range of its products and services. MTL's cardinal principle has been to be in line with the latest technology and collaboration with AGCO Limited & Perkins Engines Limited, UK and M/s Anhui Heli Co., Ltd. China, have been of great help in updating technology levels and introducing models.

The company has been the regular recipient of the Corporate Excellence Award of the Management Association of Pakistan (MAP) and the Top Companies Award of Karachi Stock Exchange (KSE) 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.