PROJECT REPORT ON

ESCORTS CONSTRUCTION EQUIPMENT LIMITED

Submitted by:

SAURABH TYAGI FIP/BBA(G) IB/021

Manav Rachna International University

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ESCORTS CONSTRUCTION EQUIPMENT LIMITED

A PROJECT REPORT

Submitted to
Manav Rachna International University
In Partial Fulfillment of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted By
SAURABH TYAGI
BBA(G) IB- V SEMESTER ROLL NO. FIP/BBA(G) IB/ 021

Manav Rachna International University

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CONTENTS
Topics Acknowledgement History About The Company Mission, Vision, Objectives Background & Detailed Structure Management ( Key Peoples ) Quality Policy Functional Departments Major Products Offered International Market Of Escorts 4 5-9 10 - 11 12 13 - 15 16 - 25 22 - 24 25 - 30 31 - 32 33 - 38

Operations Framework SW OT Analysis Main Competitors Conclusion W ork Cited

39 40 - 41 42 43 44

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ACKNOWLEDGEMENT

I would like to thank Miss Kanupriya Shekhar H.O.D. (B.B.A.) of F.I.P. and teaching faculty of the F.I.P. for providing summer training which will certainly enhance my skills and knowledge and explore me to dynamic managerial world.

I would like to my heartiest thank to the officers and staff of Escorts Construction Equipment Limited who give me permission for this project and give me need full guideline and support and co operation for conducting the summer training and preparing this report.

The training procedure session has contributed to develop my personality. I lean this fact in natural environment. This training session give me opportunity to enhance professional skills and give me a way for a success and achieving ambition in life.

I am sure that the reader will find this report useful to enhance their knowledge in Escorts Groups & help them in various ways.

SAURABH TYAGI
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ORGANISATION HISTORY
The Escorts symbol means more than a seen by the eye. It has been prepared with certain objective in mind and is symbolic in more then one way. The philosophy behind Escorts and the E in the Escorts is Enterprise. The Hexagon is a symbol of productivity, precision when interposed as a nut. It symbolizes a craftsmanship, and mending productivity. The sprains superimposed on the Hexagon represent the workers and the people of the Escorts. This forms the letter E the first of Escorts a company even on the more changing unveiling the future. The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and Mr. Yudi Nanda, launched a small agency house, Escorts Agents Ltd. in Lahore. Over the years, Escorts has surged ahead and evolved into one of India's largest conglomerates. In this journey of six decades, Escorts has had the privilege of being associated with some of the world leaders in the engineering manufacturing space like Minneapolis Moline, Massey Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J C Bamford Excavators, Yamaha, Claas, Carraro, Lucky Goldstar, First Pacific Company, Hughes Communications, Jeumont Schneider, Dynapac . These valued relationships be it technological or marketing, are our highly cherished experiences treasures, which have helped us inculcate best in class manufacturing practices and to emerge as a technologically independent world class engineering organization. 1944 - Launch of Escorts (Agents) Ltd. 1948 - Pioneered farm mechanization in the country by launching Escorts Agricultural Machines Limited, with a franchise from the U.S. based Minneapolis Moline, for marketing tractors, implements, engines & other farm equipment. Launch of Escorts (Agriculture and Machines) Ltd. 1949 - Franchise of Massey Ferguson tractors for northern India
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1951 - Escorts established Indias first private Institute of Farm Mechanisation at Delhi. 1953 -Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged to form Escorts Agents Pvt. Ltd. 1954 - 1st industrial venture of Escorts to manufacture piston rings in collaboration with Goetze of Germany, in an era when joint ventures of Indian firms with foreign companies were virtually unheard of. 1958 - Started importing Massey Ferguson tractors from Yugoslavia for marketing the same in India. 1959 - Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts became the largest producer of piston assemblies in India. 1960 - Set up of Escorts Limited 1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in collaboration with URSUS of Poland and 50% indigenous components. Launch of Escort brand of tractors. Collaboration with CEKOP of Poland for manufacture of motorcycles and scooters. Escorts moves into high gear by nurturing the two wheeler culture. The first Rajdoot motorcycle rolls off the assembly line. 1969 - Escorts Tractors Limited was born. A technical and financial joint venture with the global giant Ford Motor Company, USA, to manufacture Ford tractors in India. The years ahead saw Escorts grow as the largest tractor manufacturer in India.

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Escorts Institute of Farm Mechanisation (EIFM) established at Bangalore. Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial democracy comes into being. 1971 - 1st February, the first tractor FORD 3000 rolled out of the factory. Escorts diversifies and starts manufacturing construction equipment. 1974 - Crossing national boundaries, Escorts exports for the first time. After winning a global tender, 400 tractors were exported to Afghanistan, which was perhaps the world's largest ever airlift of tractors. 1976 - FORD 3600, an advancement in Farm Mechanisation launched. Trial production of in-plant manufacturing of engine parts (Block & Head). 1977 - Escorts enters the world of self-developed technology by setting up its first independent R&D Center. Escorts Scientific Research Centre marked its beginning at Faridabad by developing its own Engines for E-27 and E-37. Due to constant technology absorption, indigenisation level touched 72% for FORD tractors. 2nd plant at Bangalore for manufacturing piston assemblies was set up. 1979 - Collaboration with JCB Excavators Ltd., UK for manufacture of excavators. 1980 - Foray into healthcare, Escorts Hospital and Research Center set up in Faridabad.

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1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research and development centre to spearhead newer breakthroughs in Farm Mechanisation and to maintain industry leadership. Line concept introduced for engine block machining. 11,000 ton floating dry-dock Escorts I launched. 1984 - JV Escorts - Yamaha to manufacture motorcycles 1984 - Signing of agreement with the Japanese bike giant Yamaha to manufacture motorcycles with Yamaha technology. Collaboration with Jeumont Schneider of France to manufacture EPABX systems Collaboration with Dynapac of Sweden to manufacture vibratory road compactors 1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1). 1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac care facility launched in New Delhi. 1989 - Joint Venture with Claas of Germany to manufacture harvester combines. 1990-91 - First Public Issue in February 1991, over-subscribed four times. Shares listed on Delhi and Bombay Stock Exchanges. 1993 - FORD 3620 tractor launched. 1996 - Disengagement of joint venture collaboration with New Holland and launch of FARMTRAC Tractor. 1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of transmission and axles. Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile Communications. 1998 - POWERTRAC series of tractors launched.
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MoU was signed with Long Manufacturing Company, USA for setting up a Joint Venture in USA. 1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for assembly, manufacturing and marketing of Farm Machinery. 2004 - Divested Escotel Mobile Telecommunications to Idea Cellular TS16949 certification for Agri Machinery Group. 2005 Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare. 2006 - Divested in Carraro India Ltd. Set up new manufacturing facility in Rudrapur for manufacture of new range of railway equipment

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ABOUT THE COMPANY

The Escorts Group, is among India's leading engineering conglomerates operating in the high growth sectors of agri-machinery, construction & material handling equipment, railway equipment and auto components. Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the agricultural growth of India for over five decades. One of the leading tractor manufacturers of the country, Escorts offers a comprehensive range of tractors, more than 45 variants starting from 25 to 80 HP. Escort, Farmtrac and Powertrac are the widely accepted and preferred brands of tractors from the house of Escorts. A leading material handling and construction equipment manufacturer, we manufacture and market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts. Escorts today is the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer. Escorts has been a major player in the railway equipment business in India for nearly five decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening systems, composite brake blocks and vulcanized rubber parts. In the auto components segment, Escorts is a leading manufacturer of auto suspension products including shock absorbers and telescopic front forks. Over the years, with continuous development and improvement in manufacturing technology and design, new reliable products have been introduced. Throughout the evolution of Escorts, technology has always been its greatest ally for growth. In the over six decades of our inception, Escorts has been much more than just being one of India's largest engineering companies. It has been a harbinger of new technology, a prime mover on the industrial front, at every stage introducing products and technologies that helped take the country forward in key growth areas. Over a million tractors and over 16,000 construction and material handling equipment that
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have rolled out from the facilities of Escorts, complemented by a highly satisfied customer base, are testimony to the manufacturing excellence of Escorts. Following the globally accepted best manufacturing practices with relentless focus on research and development, Escorts is today in the league of premier corporate entities in India. Technological and business collaboration with world leaders over the years, Globally competitive indigenous engineering capabilities, over 1600 sales and service outlets and footprints in over 40 countries have been instrumental in making Escorts the Indian multinational. At a time when the world is looking at India as an outsourcing destination, Escorts is rightly placed to be the dependable outsourcing partner of world's leading engineering corporations looking at outsourcing manufacture of engines, transmissions, gears, hydraulics, implements and attachments to tractors, and shock absorbers for heavy trailers. In today's Global Market Place, Escorts is fast on the path of an internal transformation, which will help it to be a key driver of manufacturing excellence in the global arena. For this we are going beyond just adhering to prevailing norms, we are setting our own standards and relentlessly pursuing them to achieve our desired benchmarks of excellence. The Escorts symbol means more than a seen by the eye. It has been prepared with certain objective in mind and is symbolic in more then one way. The philosophy behind Escorts and the E in the Escorts is Enterprise. The Hexagon is a symbol of productivity, precision when interposed as a nut. It symbolizes a craftsmanship, and mending productivity. The sprains superimposed on the Hexagon represent the workers and the people of the Escorts. This forms the letter E the first of Escorts a company even on the more changing unveiling the future.

ESCORTS AGRI MACHINERY GROUP

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VISSION We shall strive to be the Numero Uno in the Indian tractor industry and top five tractor manufacturers in the world. We shall continuously strive to meet the ever rising expectations of our valued customers at the lowest internal cost. We shall aim to offer the farming community a range of innovative products and services, which shall enable them to improve their productivity and competitiveness. We shall achieve a turnover of RS. 20 Billion And profit of RS. 2 Billion By the year 2000. Transcending national boundaries, we shall strive to attain exports of one tenth of our total tractor production by the year 2000. MISSION We will achieve leadership in market share & profitability in the domestic tractor market by the year 2009-2010 and shall be the world's largest supplier of sub 100 HP tractors. We shall proactively contribute to the prosperity of the rural economy by defining a larger role for ourselves in the Food and Agriculture sector.

OBJECTIVE
ESCORTS LIMITED are the holding company of Escorts groups. Post restructuring, Agri Machinery or tractors has become the focus area of operations. Other businesses like I.T., construction equipment are controlled through subsidiaries and joint ventures.

BUSINESS

Background
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In 1960, Escorts set up the strategic Agri Machinery Group (AMG) to venture into tractors. In 1965, we rolled out our first batch of tractors under the brand name of Escort.

In 1969 a separate company, Escorts Tractors Ltd., was established with equity participation of Ford Motor Co., Basildon, UK for the manufacture of Ford agricultural tractors in India. In the year 1996 Escorts Tractors Ltd. formally merged with the parent company, Escorts Ltd. Since inception, we have manufactured over 1 million tractors.

Technologies Escorts AMG has three recognized and well-accepted tractor brands, which are on distinct and separate technology platforms. Farmtrac: World Class Premium tractors, with single reduction and epicyclic reduction transmissions from 34 to 75 HP. Powertrac: Utility and Value-for-money tractors, offering straight-axle and hub-reduction tractors from 34 to 55 HP. Indias No.1 economy range engineered to give spectacular diesel economy. Escort: Economy tractors having hub-reduction transmission and twin-cylinder engines from 27 to 35 HP. Pioneering brand of tractors introduced by Escorts with unbeatable advantages.

International Subsidiaries
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Escorts AMG has one international subsidiary.

Farmtrac Tractors Europe Sp.z o.o.in Poland. We now cater to 41 countries.

Fuctional Excellence Manufacturing Quality Assurance Materials Management Sales & Marketing Knowledge Management Finance Human Resources Information Technology

Beyond manufacture, Escorts has made substantial investments towards the modernisation of farm technology. The Escorts Institute of Farm Mechanisation (EIFM) at Bangalore is a unique center where training is imparted in operation, maintenance and repair of farm machinery. It is among the few institutions of its kind in the world. Its programs are aimed at encouraging customers, dealers, engineers, mechanics as well as the field staff of Escorts, towards meeting its objective of enhancing agricultural productivity and improving quality of life in rural India.

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MANAGEMENT
Mr. Rajan Nanda Chairman An alumnus of Doon School, Dehradun, Mr. Rajan Nanda took over as Chairman of Escorts Group in the year 1994. That was the time when the Indian economy had begun to burgeon as a result
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of liberalization. The task before him was to prepare Escorts Group for the emerging competitive, globalised business environment and steer it to greater heights. Displaying vision and leadership qualities, Mr. Nanda undertook a major restructuring programme to give sharper focus to the Group's businesses. Under his stewardship the Escorts Group today is moving ahead in the high growth areas of agri machinery, construction equipment, railway equipment and auto components. Mr. Nanda is an active member of several apex trade and industry bodies. As member of the CII National Council he has served as Chairman of its Agriculture Committee in the past years. He played a pivotal role in promoting the cause of Indian agriculture and his endeavours resulted in the Government announcing the long-awaited National Agriculture policy.

Mr. Nikhil Nanda Joint Managing Director Mr. Nikhil Nanda is an alumnus of Wharton Business School, Philadelphia. Having graduated in Business Administration in 1995, he majored in Management and Marketing, before undergoing professional training with JC Bamford Excavators Ltd., U.K.
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He is a member on the Board of most Group companies since 1997 and has the overall responsibility for managing the Group's agri, construction and engineering businesses. Combining contemporary management techniques with real life practical approach, Mr. Nikhil Nanda has been responsible for driving the business growth initiatives of the Group to strategically position it in the global arena. Mr. Nanda is also among the five Indians selected as the Global Leaders of Tomorrow for the year 2001 by the World Economic Forum, Geneva.

Mr. S. Sridhar CEO Agri Machinery Group Mr. S Sridhar is an Agricultural Engineer and has done Post Graduate Diploma in Business Management from Symbiosis Institute of Business Management Pune. He has over 26 years of experience in Auto (Tractor and Bi-Wheeler) Industry in the areas of Sales & Marketing, Plant Operations, Product Planning and Strategies. In his previous assignment, Mr. Sridhar was with Bajaj Auto as the President of their Motorcycle Business. In the long span of more than two and half decades, he has worked with companies like Bajaj, TVS Suzuko and Mahindra.

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Mr. Kanwal Kishore Vij ED & CEO Escorts Construction Equipment Limited (ECEL) Mr. Kanwal Kishore Vij is a Mechanical Engineer and has studied advanced courses in Marketing and Management from Harvard, IIM (A) and Manila. He has over 26 years of experience in the Automobile/Engineering industry and has worked with leading companies including Eicher Group, Baxy Motors (Div. of Continental Engines Ltd.) and Vege Intermotor B.V. Netherlands. Till recently, he was holding the position of CEO & Director, Vege Intermotor B.V. Netherlands. At Escorts, Mr Vij is responsible for driving the business growth of ECEL and to maintain its dominant position in the Construction Equipment segment.

Mr. Lalit K Pahwa CEO, Auto Products Division An alumni of Symbiosis Institute of Business Management Pune, he holds the Bachelor of Engineering (Mechanical) from Government Engineering College, Jabalpur. Mr. Pahwa has over 14 years of experience as a successful leader and has shouldered different responsibilities as CEO and MD of Engineering, Manufacturing and automation businesses. Mr. Pahwa has vast experience in identifying and executing M&As, JVs and business alliances as a part of growth and turn around strategies for midsized Indian and global companies. At Escorts, Mr. Pahwa will have an overall responsibility to drive growth and profitability of the Auto Suspension Products Business and will lead the teams in enhancing the product and technology programs.

Mr. Vikram Singhal

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ED & Business Head Engineering Division A Mechanical Engineer by profession, Mr. Vikram Singhal has got around 30 years of rich and varied experience in business reengineering, sales & marketing operations, international business, manufacturing operations, turnaround and conceptualization and execution of strategic initiatives. At Escorts, Mr. Singhal is responsible for business operations and will lead by building a strategic business approach to move up the revenue chain and create value.

Mr. G.B. Mathur EVP - Law & Company Secretary Has considerable experience in Secretarial and Legal matters. Having joined Escorts in 1993, Mr. Mathur is responsible for all Company law related matters and is also the custodian of the shareholder related matters. Prior to joining Escorts he was the Company Secretary at Chambal Fertilizers & Chemicals Ltd.

Mr. O K Balraj EVP & Group CFO A Chartered Accountant by profession, certified under the Indian Institute of Bankers, London, with an advanced degree/ diploma from Harvard University on Project Finance, Mr. O K Balraj has over 28 years of rich and valued experience in different facets of financial operations and executive management. Prior to joining Escorts, he was working as Group Director (Finance) at NSL Group where he was responsible for
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dealing with banks and financial institutions for raising capital for fund expansion projects, follow-up of new investments for formulating strategic business plan. He has also worked at senior positions in reputed organizations like Goghenheim Infrastructure Fund, New York, Essar Group, IDFC, ANZ Grindlays and Tata Group.

Mr. Ishan Mehta EVP - HR & ER An alumnus of Xaviers Labour Research Institute, Jamshedpur (XLRI), Mr. Ishan Mehta has got more than 30 years of experience in aligning HR/ER strategies to business, enhancing organizational effectiveness and work place improvement. Mr. Mehta who started his career with DCM Limited, has worked with companies like Ballarpur industries, Eicher Group and East India Hotels (EIH) in senior level assignments. Prior to joining Escorts Group as EVP HR&ER, Mr. Mehta was steering Human Resources of Emaar MGF as Director HR.

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QUALITY POLICY
Over six decades back two young men set out on a journey together armed with little beyond intelligence, business acumen and determination and dreams aplenty. They believed that India could only achieve total freedom with a breakthrough in the field of agriculture and mechanization would have to rule the fields. Their youthful enthusiasm had kindled the hope that one day they would make a mark of their own. They were in fact writing the first chapter of what has come to be widely recognised as one of the greatest success stories in Indian industry. Escorts came into being with a vision. A vision that eschewed easy paths to profitability, and sought instead for ways to make a contribution. A vision that led two young brothers, Yudi and Hari Nanda, to branch out of their family's prospering transport business and institute ventures that were to become the foundations of Escorts Limited. On 17th October 1944, Escorts Agents Limited was born at Lahore (now in Pakistan) with Mr. Yudi Nanda as Managing Director and Mr. Hari Nanda as Chairman. It was a trendsetting marketing house driven by the same business philosophy, which had given their family enterprise an unrivalled reputation: customer concern. Not long afterwards, this driving ambition to go beyond the expected led Hari Nanda to the first of his many successful business insights - the discovery of the great business potential that lay in India's villages. This led to the launch, in 1948, of Escorts (Agriculture and Machines) Ltd., with Yudi Nanda as Director. Though separate business entities then, both companies had two great strengths in common: the dynamic Nanda brothers and the unifying force of the name they gave their companies; Escorts, literally 'escorting' their products and services to the customer while most other businessmen were just selling. Tragically, Mr. Yudi Nanda died in an accident in 1952 - but his spirit remained embedded in the foundations of the company. Mr. H P Nanda then took on the mantle to realise the dreams which he had always seen with his brother.

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Escorts (Agents) Ltd., and Escorts (Agriculture and Machines) Ltd. merged in 1953 to create a single entity -Escorts Agents Pvt Ltd. Having initially started with a franchise for Westinghouse domestic appliances, by this time the Company had already expanded its marketing and service operations, representing internationally known German and American organisations such as MAN, AEG, Haniel & Leug, Knorr Bremse, MIAG and BMA for sophisticated electrical and mechanical engineering equipment and Minneapolis Moline and Wisconsin for agricultural tractors, implements and engines. Escorts made a major thrust into the agricultural arena by taking on the marketing and service franchise for Massey Ferguson tractors in Northern India, which soon comprised 75% of MF's all-India sales - a signal tribute to Escorts' inherent strengths. Its first industrial venture came up in 1954, in partnership with Goetzewerke of Germany for the manufacture of piston rings and cylinder liners - followed by production of pistons in collaboration with MAHLE, also of Germany, in 1960. The company's incorporation in its present name, Escorts Limited, was effected on 18th January, 1960. Escorts' next major industrial activity was the assembly of tractors in 1961 in technical cooperation with URSUS of Poland. Subsequently this led to the manufacture of the country's first indigenous tractors under Escorts' own brand name, which were to play a pivotal role in the Green Revolution. This went on to lay the foundations that even today are the Company's core strengths -relevant, world-standard technology through strategic international alliances; a broadbased marketing and service network yet unrivalled; powerful symbiotic relationships with suppliers and dealers; and above all, the crusade to make a difference. Beyond the growth of the organisation, these principles have ensured that Mr. H. P. Nanda's contribution to the cause of industry and the consumer will endure. He pioneered the revolutionary concept of 'interdependence' between ancillary and large industries, institutionalising vendor development and in the process building Faridabad and the entire belt of townships in the region. He introduced the discipline of service going before marketing, reassuring the customer that Escorts would stay with them, that they were here for the long run. He built lasting alliances with an array
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of the world's most respected names in tractors, industrial equipment, two-wheelers, construction equipment and telecommunications. Going further, he created institutions devoted to value engineering and training, not only as investments in the company's future but also as catalysts for the enhancement of Indian industry as a whole the Escorts R&D Centre and the unique Escorts Institute of Farm Mechanisation. His concern extended to the society in which he worked, and he manifested it by establishing the Escorts Medical Centre at Faridabad, Escorts Heart Institute and Research Centre at New Delhi, as well as numerous village development programmes. And above all, he imbued the corporation with his own pioneering, entrepreneurial spirit, instilling both a conscience and a vision of leadership. Escorts is testimony to the valour, vision and values of its Founder Mr. H P Nanda. He remains the inspiration for our courage, spirit of adventure and ability to Think Big. These qualities are his enduring legacy and have inspired and encouraged us down the decades and will continue doing so in all our endeavors.

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FUNCTIONAL DEPARTMENT (FINANCE, MKT, HR, PRODUCTION, PURCHASE)

HR PRACTICES : Its Human Resource policies are aimed towards creating a skilled & motivated workforce. It has 50 employees both employed in its corporate office as well as in its manufacturing unit & other facilities. Description is as below:

*According to age AGE 18-24 25-35 35 & above TOTAL NO. OF EMPLOYEES 10 25 15 50

PRODUCT PROMOTION STRATEGY For the promotion mix Perfect Bake would be promoted via Advertisement initially. This advertisement would be electronic on TV or in print like billboards, posters, print ads, and banners. For the time being the rest of the tools of promotion mix, like sales promotion, direct selling and public relation are not needed but as are product is popular enough we would start focusing on these promotional tools as well, but right now the product is at its launch stage and mass awareness should be generated and that can only come
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through electronic ads and this is the best way to reach a wide audience because almost all people have access to it. MARKETING STRATEGY FOR PERFECT BAKE: Escorts Limited AMG Plant-II Quality Objectives are derived for the quality policy and are intended to provide quality direction to employees in the day to day operation of the plant. The quality objectives are applicable to AMG Plant-II is approved by Plant Head. The approved quality objectives are below: Escorts Limited- AMG Plant Quality Objectives are derived from the Quality policy and are intended to provide Quality Director to Employees in the day to day operations of the company. We will attempt to give our Customers the best value for their money by supplying products to match customer specifications/needs. We will attempt full customer satisfaction by monitoring customer perceptions and brand image of our product through market surveys and periodic direct customer contact in the market place. We will pursue continuing improvement in Product Quality and Productivity by suitable indicators to measure the trends of improvement resulting from our efforts. We will strive to ensure full commitment and conformance to the Escorts Limited AMG Plant-II Quality Management System in all areas of work and take prompt corrective action on any problem that may occur. We will work together as a team across departments and organizational levels using Task Forces to develop a common focus and greater effectiveness in solving problems. Specific Corporate and Departmental Objectives for a particular year will be derived from the above used to monitor and control company operations.
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Best value for money, customer satisfaction, continued improvement in product quality, productivity conformance to quality management system in each area of work, prompt corrective action and team building are the major focus areas of quality objective of AMG Plant-II. RURAL MARKETING OVERVIEW OF THE FARMTRAC

No. 1

Aspect

Urban Concepts

Rural & Concepts, Development Marketing Relationship Marketing &

Marketing & Societal Marketing & Societal Relationship Marketing

Philosophy

a) Market b) Demand c) Competition Consumers Location Literacy Income Expenditure Needs Innovation/Adoption Concentrated High High Planned, Even High Level Faster Widely Spread Low Low Seasonal, Variation Low Level Slow High Among Units Organized Sector Low In Mostly From Unorganized Units

Product Awareness Concept Positioning Usage Method

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High Known Easy Easily Grasped

Low Less Known Difficult Difficult To Grasp

Quality Preference 4 Price Sensitive level desired 5 distribution

Good

Moderate

Yes Medium-high

Very much Medium-low

Wholesalers, stockists, Village Channels retailer, specialty Good High supermarket, Haats stores, & Average Limited

shops,

authorised showrooms Transport Facilities Product Availability 6 Promotion Print, Advertising media, exhibitions languages Personal Selling Sales Promotion Publicity Door-to-door, frequently Contests, gifts, price Gifts, price discounts discount Good opportunities Less opportunities Occasionally audio etc. visual TV, radio, print media few languages outdoors, to some extent. More

Special Products for Rural Markets:

Rural Transporter: FARMTRAC is busy developing the prototype of what it calls a Rural Transporter basically a hybrid between a tractor and a rural transport vehicle. The product at 20-25 HP will be targeted at those who cannot

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afford a normal tractor and would also fulfill the need of family transporter that could take in the rural roughs but would be much more comfortable and safer than the conventional tractor-trolley.

Titan Watches: A recent NCAER study revealed that there is a great potential for watches in rural areas. In fact it is considered to be a high priority list. It was also found that a rural consumer looks for the ruggedness of the watch more than the urban consumer does. He prefers thick watches than slim watches.

The biggest problem that the Marketers are facing in the Rural Markets is Of IMITATIONS. Imitations may result in two types of goods depending upon the purpose, commitment, and competence of imitator. A poor imitator will end up in producing deceptive, spurious, fake, copycat products. He dupes the gullible customer by offering products having close resemblance with the original. In quality, it is poor cousin to the original. On the other hand, a poor imitator may even produce an improved version of the original product. In this scenario the job of the Marketer becomes even more difficult in the sense that he has not to fight other competitors but also the imitated products. The advantages that these products enjoy in the rural markets are that the Imitators who are in the villages are making these and they are offering More Margins & Better credit Facilities. To solve this problem the Marketer has to educate the consumer about his product and show him the benefits of his products over the imitated ones.

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PRODUCTS PRODUCT RANGE

TRACTORS Farmtrac (35 75 HP, Premium range) Powertrac (30 55 HP, Value range) Escort (27 35 HP, Economy range)

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COMBINE HARVESTERS TRANSMISSIONS & AXLES - Ford, Ursus & Carraro SpA of Italy for state-of-art transmissions to offer with higher HP tractors. ATTACHMENTS FOR TRACTORS - loaders, dozers & backhoes. IMPLEMENTS for various farm operations.

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INTERNATIONAL MARKET OF THE ESCORTS

Along with achieving high market share in domestic market , Escorts with its Farmtrac range of tractors has spread its wings to international boundaries as well. To consolidate our presence in the overseas markets, we have acquired 100 % equity in this subsidiary i.e. Farmtrac Tractors Europe Sp. Z o with FTES products successfully EU homologated Market leader in Africa , with presence in 22 African countries. Our DG Set business has been initiated in the overseas market with our first order to Kenyan market. Brand reinforcement and enriched experience through Spare Parts & Service support offering.
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 LOC (Line Of Credit) business a special vehicle provided to us by Government of India to launch our products effectively in African markets To consolidate our presence in the overseas markets, the company has acquired Long Agribusiness LLC, a tractor distributing company in the USA, recently christened as Farmtrac North America LLC. Over 5000 tractors have been exported to the USA in the last three years. Another overseas joint venture Pol-Mot Escorts Spolka Z.O.O., Poland, (between Escorts and Pol-Mot Holding S.A., Poland), recently christened as Farmtrac Tractors Europe Sp. Z.o.o., takes care of the assembly and marketing of tractors in Poland and other East European countries. Our tractors in Europe have been homologated for marketing them in all EU nations besides others. Besides USA and Poland, Escorts is firmly based in Turkey, Australia, Bangladesh, Sri Lanka, Nepal, Tanzania, Chile, Ghana, Zambia, and Zimbabwe. Recently we have received a 3rd Time Repeat Order for 400 tractors from Ghana, which would take the Farmtrac population to 1,000 nos. Similarly in Senegal, we have successfully executed an order of 410 Farmtrac tractors. Escorts have very ambitious plans to expand the dealers network in other potential countries in the current year. In this context, we seek to join hands with leading Agricultural Machinery / Automotive Dealers to market our tractors in their respective countries. South Africa's tractor sales fell 30.8 percent yearon-year in February and combine harvester sales dropped 66.7 percent, pressured by low grain prices and a large maize crop, data showed on Thursday. Tractor sales between January and February were down 25.9 percent to 923 units compared with 1,245 units in the same period last year, the South African Agricultural Machinery Association (SAAMA) said. It said sales had been weighed down by low grain prices caused by a strong rand and the large size of the maize crop currently in the ground. "Recent sharp declines in grain prices have had a strong influence on market sentiment and farmers are very cautious of spending money on capital goods at these low grain price levels, whilst their cash resources are low," SAAMA chairman Leon Pretorius said in a statement. The Crop Estimates Committee (CEC) said last month it expected this year's maize harvest to rise to 12.88 million tonnes, the country's biggest crop in 29 years. South Africa, the continent's biggest economy, also has one of its
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strongest agriculture sectors, but prices of some major crops have slowed on the back of lower international prices and a stronger currency. Pretorius said SAAMA expected tractor sales to fall by about 10 percent to 5,000 units this year.

FEASIBILITY OF ESCORTS AT SOUTH AFRICA. The $171 million agricultural equipment market in South Africa is still dominated by three types of farm machinery (tractors, combines and balers) which is a reflection of the prevalent agricultural crops (maize, wheat, grain sorghum and other field crops). While eighty percent of all agricultural equipment is imported into South Africa, annual unit sales of the big three have only recently begun to increase after a twenty year decline from their early 1980s peak. The Rand/Dollar exchange rate had a significant influence with the import of U.S. machinery; however despite extreme fluctuations within the exchange rate, the agriculture machinery market has remained buoyant. The recent strengthening of the South African Rand in the beginning of the second quarter of 2009 has placed the import of U.S. products in a favorable position. Positive regional economic development especially in Angola and Mozambique has also created significant international interest in these markets, with agriculture as one of the regional countrys primary sector focus. South Africa is regarded as the gateway into Africa and is suitably situated within the region to assist and expand into these markets. Changes in agricultural patterns in South Africa, including significant decreases in the acreage of arable land under cultivation in maize and wheat and the reallocation of land to previously disadvantaged communities have had a noticeable impact on the types and quantities of agricultural equipment being imported.

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Market Overview The South African agricultural equipment market is estimated at approximately US$171 million. Tractor sales constitute the sixty percent of the total agricultural equipment market followed by combine and baler sales. A significant number of specialized equipment and parts are also being sourced from international markets. Although the contribution of agriculture to the GDP is small, its importance cannot be overstated. The agriculture sector provides employment for a million people and agroindustrial activity amounts to about 15% of GDP, with substantial growth potential. New land owners will also create further employment and income. Although 80% of South Africas land is used for agriculture only 15% of that is arable with the rest being used for pastoral and other purposes.

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Agricultural Equipment Market % Segmentation Equipment Percentage Share Tractors 58.9 Hay and silage equipment 11.6 Harvesting equipment9.1 Planting, fertilizing, pest control equipment 7.8 Tillage equipment 4.5 Other 8.2 100%

The recent strength of the Rand combined with low domestic interest rates has enabled South African farmers to replace aging equipment. The Agriculture machinery market continues to be buoyant despite a slump in sales since 2004 when sales of combine harvesters rose by 48%. Figures released by the South African Agriculture Machinery Association (SAAMA) indicate that tractor sales rose by 50 percent since 2009. Combine and Baler sales have also rose by a 50 percent compared with sales recorded in 2010. Farm land allocation and redistribution to previously disadvantaged communities continues to be high on the agenda of the South African Government (SAG), with concerted efforts being made to address and eradicate past injustices. The government is also working to develop small-scale farming in efforts to boost job creation. While this will ultimately place more land in the hands of emerging farmers, the resulting agricultural operations will likely be smaller and will
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require time and training/assistance to reach their potential. However, the increase in numbers of farmers will represent an increased number of farming equipment purchasers as well. As always, agricultural trends are greatly affected by weather and market realities. Rainfall continued to be sporadic throughout South Africa in 2008 and 2009 with some drought conditions reported throughout the country. South Africa has good sunlight nationwide throughout the year, which allows for more controlled farming, particularly green house farming. This is creating a growing market for greenhouse sheeting and other related products. FEASIBILITY STUDY OF ESCORTS TRACTOR IN ANGOLA tractor industry plays an important part as agriculture sector has a major contribution to Indias GDP. Tractors are part of agricultural machinery industry. Tractors came to India through imports and later on were indigenously manufactured with the help of foreign collaborations. The manufacturing process started in 1961-62. Indian tractor industry is relatively young but now has become the largest market worldwide. There are currently 14 players in the industry. Mahindra & Mahindra is the leading player in the industry. Monsoon season is a key driver for sales of tractors. A series of good or bad monsoon can affect the sales. In recent years the industry has registered a good growth in sales, both domestic as well as exports. This is also partly because of the initiative of the government to boost up agriculture and agricultural machinery industry. The tractor penetration level in India is very low as compared to the world standards. Also the penetration levels are also not uniform throughout the country. While the northern region is now almost saturated in terms of new tractor sales, the southern region is still under penetrated. The medium horse power category tractors, 31-40 HP, are the most popular in the country and fastest growing segment. This report gives an insight into the tractor industry in India, discussing its inception and growth. It analyzes the current scenario of tractors in India, industry size, domestic and exports trends and Indias share in global market. Lastly, it discusses the players in the industry and profiles the top players.

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OPERATIONS FRAMEWORK
Escorts is testimony to the valour, vision and values of its Founder Mr. H P Nanda. He remains the inspiration for our courage, spirit of adventure and ability to Think Big. These qualities are his enduring legacy and have inspired and encouraged us down the decades and will continue doing so in all our endeavors. In the business world investment is made in machinery, equipment and services. Quite naturally time and money is spent ensuring that they provide what their suppliers claim. In other words the performance is constantly appraised against the results expected. When it comes to one of the most expensive resources companies invest in, namely people, the job appraising performance against results is often carried out with the same objectivity. Each individual has a role to play and management has to ensure that the individuals objectives translate into overall corporate objectives of the company. Performance Management includes the performance appraisal process which in turn helps identifying the training needs and provides a direction for career and succession planning.

SWOT ANALYSIS
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Strengths- Strengths are the qualities that enable us to accomplish the

organizations mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc. Weaknesses- Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc. Opportunities- Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a difficult task. Opportunities may arise from market, competition,
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industry/government

and

technology.

Increasing

demand

for

telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue. Threats- Threats arise when conditions in external environment jeopardize the reliability and profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc.

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MAIN COMPETITORS

HMT LTD. ( HMTLTD )

MAHINDRA & MAHINDRA ( M & M )

PUNJAB TRACTORS LTD. ( PUNJTR )

VST TILLERS TRACTORS LTD. ( VSTTIL )

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CONCLUSION
With rewards being directly linked to achievement of objectives, goal setting and Performance Appraisal assumes utmost importance. The Performance Appraisal System has been professionally designed and it is monitored by HRD. The implementation is the responsibility of each and every employee along with their supervisor. There should be adequate training to the evaluator that will go a long way in answering the quality of Performance Appraisal. In conclusion, a Performance Appraisal is a very important tool used to influence employees. A formal Performance review is important as it gives an opportunity to get an overall view of job performance and staff development. It encourages systematic and regular joint-stocking and planning for the future. Good performance reviews therefore dont just summarize the past they help determine future performance.

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WORK

CITED

WWW.SCRIBD.COM

WWW.WIKEPEDIA.COM

WWW.ESCORTSGROUP.COM

WWW.RESEARCHANDMARKETS.COM

WWW.BUSINESS-STANDARD.COM

WWW.SLIDESHARE.NET

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