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MBA-IB (2007-2009)
Roll No. : A1802009257





This is to certify that AABHASH KIRAN, a

student of Amity International Business
School, Noida, undertook a project on
From 3/3/2010 to 10/7/2010.

Mr._AABHASH KIRAN has successfully

completed the project under the guidance
of Mr.ASHOUTOSH SINGH. She/He is a
sincere and hard-working student with
pleasant manners.

We wish all success in her/him future


Signature with date

(Company Name)

This is to certify that Mr.AABHASH KIRAN,

a student of Post Graduate Degree in
MBA-IB, Amity International Business
School, Noida has worked in the ESCORTS
LIMITED, under the able guidance and
supervision of Mr.ASHOUTOSH SINGH,
The period for which he/ she was on
training was for 10weeks, starting from
3/5/2010 to 10/7/2010. This Summer
Internship report has the requisite
standard for the partial fulfillment the Post
Graduate Degree in International
Business. To the best of our knowledge no
part of this report has been reproduced
from any other report and the contents
are based on original research.

(Faculty Guide)

I express my sincere gratitude to my

industry guide Mr. ASHOUTOSH SINGH,
LIMITED, for his able guidance,
continuous support and cooperation
throughout my project, without which the
present work would not have been
I would also like to thank the entire team
constant support and help in the
successful completion of my project.

Also, I am thankful to my faculty guide

Prof. Ms. Richa Goel of my institute, for
his/her continued guidance and invaluable

(Research Based)
Chapter No. Subject Page No.

Ch.# 1.0 Executive Summary………………….6

Ch.# 2.0 Research Methodology………………
1.1 Primary Objective(s)………….11
1.2 Research Design………………14
1.3 Sample Design………………..21
1.4 Scope of the Study…………….26
1.5 Limitations…………………….27
Ch.# 3.0 Critical Review of Literature……….. 28
Ch.# 4.0 Company Profile …………………….37
4.1 Industry Profile………………..83
4.2 Pest Analysis…………………...102
4.3 Swot Analysis………………….106
Ch.# 5.0 Data……………………………………
5.1 Primary Data……………………111
5.2 Secondary Data….……………..112
Ch.# 6.0 Data Analysis and Interpretation……..113
Ch#7.0 Findings………………………………..121
Ch.# 8.0 Recommendations……………………..123
Ch.# 8.0 Bibliography………………………….125
Ch.# 9.0 Annexure……………………………..
9.1 Questionnaire…………………126
Ch.# 10.0 Case Study ..…....................................135
Ch# 11.0 synopsis of the project…………………


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. 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.
The survey involved gathering wide
information about the company, its
products, customer satisfaction and
impact of various competitive firms on the
From the information collected, various
aspects were identified where the
company needs to focus more to improve
the efficiency of marketing team of
Escorts Limited.
The research was conducted through
collection of primary and secondary data.
Secondary data was collected through
visiting various web sites, automobile
magazines and other reliable sources.
Primary data was collected through a well-
framed questionnaire, of which later a
detailed analysis was done using various
statistical I.T. tools like MS Word and MS
Excel. On the basis, of secondary data
analysis and the extensive analysis of
primary data, interpretations were drawn
for the questions and conclusion is drawn.
Certain suggestions are also drawn from
the analysis to help Escorts Limited to
increase their market share by giving
customers higher level of satisfaction.


Customer Satisfaction is the buzzword

used by the business people for the
success of organization in the present
days. Due to the increases of heavy
competition in every product –line it
become difficult for the companies to
retain the customers for longer time. So
retain the customer for longer time the
marketer has to do only one things i.e.
customer satisfaction .If customer is fully
satisfied by the product it not only rub the
organization successfully but also fetch
many benefits for the company. They are
less process sensitive and they remain
customer for a longer period. They buy
addition products overtimes as the
company introduce related produce
related products or improved, so customer
satisfactions is gaining a lot of importance
in the present day. Every company is
conducting survey on customer
satisfaction level on their products .To
make the products up to the satisfaction
level of customers.
This project is also done to know the
customers satisfaction on the
ESCORTS TRACTOR on behalf of
Group) The impact of Agri machinery
industry on the rest of the economy
has been so pervasive and
momentous that is characterized as a
boon for the economy. It played a
vital role in the field of agriculture to
produce surplus food grains and make
economy self-sufficient in food
production. The decrease in the
interest rate and easy available of
tractor loans from 2 to 3 years, lot of
tractor manufacturers company
facing cut throat competition in the
fields of technology and price, So to
gain the market share it is important
for the institutes to satisfy its
customers and to retain the
reputation and its image.

Customer Satisfaction Strategies

Followed By Escorts Limited:
The different strategies followed by
Escorts Limited consists of Customer
relation management, strategy to
providing better facility to the owner,
and strategy to provide better after
sales service to customer.

CRM is a tool used to create positive

word _of -mouth, to monitor customer
experiences and general referrals. A
series of CRM activities were
implemented with regular direct
communication, events and customer
satisfaction surveys.



• The study has been taken to analyze

the customer satisfaction towards all
variants of ESCORT Tractors in
Haryana (Palwal & near by villages)
with a special reference to the
Group), the other objectives are:

 To gather information about

customer satisfaction toward Escort
tractor in the geographic region of

 To know the customer perception

about features, low maintenance
cost and looks of tractor.

 To know the customer satisfaction

about the comfort and the safety
provided by ESCORTS.

 To provide suggestions, in improving

the customer satisfaction and the
company sales and profitability.

 To know the customer satisfaction

towards the after sales service

 Comparison of Escorts Tractor with

its competitors.

A research process consists of stages or

steps that guide the project from its
conception through the final analysis,
recommendations and ultimate action.
The research process provides a
systematic, planned approach to the
research project and ensures all aspects
of the research project are consistent
with each other.
Research studies evolve through a series
of steps, each representing the answer
to a key question.


This chapter aims to understand the

research methodology establishing a
framework of evaluation and revaluation
of primary and secondary research. The
techniques and concepts used during
the primary research in order to arrive at
its findings, which are also dealt with
and lead to a logical deduction towards
the analysis and results.

I propose to conduct a intensive

secondary research to understand the full
impact and implication of the industry, to
review and critique the industry norms
and reports, on which certain issues shall
be selected, which I feel remain
unanswered or liable to change, this shall
be further taken up in the next stage of
exploratory research. This stage shall help
me to restrict and select only the
important question and issue, which
inhabit the growth in the industry.

The various tasks that I have undertaken

in the research design process are:

 Defining the information need.

 Design the exploratory, descriptive

and causal report.

The research process has four distinct
yet interrelated steps for research
It has logical and hierarchical ordering.
Each step is viewed as separate process
that includes a set of task, step and
specific procedure. The steps
undertaken are logical, objective,
systematic, reliable, valid, impersonal
and ongoing.


The method I used for exploratory

research was
o Primary Data
o Secondary Data

Primary Data

New data gathered to help solve the

problem at hand. As compared to
secondary data which is previously
gathered data. An example is
information gathered by questionnaire.
Qualitative or quantitative data that are
newly collected in the course of
research, consists of original information
that comes from people and includes
information gathered from surveys,
focus groups, independent observations
and test results. Data gathered by the
researcher in the act of conducting
This is contrasted to secondary data,
which entails the data gathered by
someone other than the researcher
information that is obtained directly
from first- hand sources by means of
surveys, observation or


Information that already exists

somewhere, having been collected for
another purpose. Sources include census
reports, trade publications, and
subscription services. There are two types
of secondary data: internal and external
secondary data. Information compiled
inside or outside the organization for some
purpose other than the current
investigation Researching information,
which has already been published? Market
information compiled for purposes other
than the current research effort; it can be
internal data, such as existing sales-
tracking information, or it can be research
conducted by someone else, such as a
market research company or the
U.S. government.
Secondary source of data consists of
books and websites
My proposal is to first to conduct a
intensive secondary research to
understand the full impact and implication
of the industry, to review and critique the
industry norms and reports, on which
certain issues shall be selected, which I
feel remain unanswered or liable to
change, this shall be further taken up in
the next stage of exploratory research.


STEPS in descriptive research:

Statement of the problem
 Identification of information needed to
solve the problem.

 Selection or development of
instruments for gathering the

 Identification of target population and

determination of sampling plan.

 Design of procedure for information


• Collection of information.

• Analysis of information.

• Generalizations and / or
Data collection took place with the help of
filling of questionnaires. The questionnaire
method has come to the more widely used
and economical means of data collection.
The common factor in all the varieties of
the questionnaire method is the reliance
on verbal responses to questions, written
or oral. I found it essential to make sure
the questionnaire was easy to read and
understand to all spectrums of people in
the sample. It was also important as
researcher to respect the samples time
and energy hence the questionnaire was
designed in such a way, that its
administration would not exceed 4-5 mins.
These questionnaires were personally
The first hand information was collected
by making the people fill the
questionnaires. The primary data collected
by directly interacting with the people.
The data was collected by interacting with
200 respondents who filled the
questionnaires and gave me the required
necessary information. The respondents
were farmers, businessmen etc. the
required information was collected by
directly interacting with these

It is a description of the characteristics of

that group of people from whom a course
is intended. It attempts to describe them
as they are rather than as the describer
would like them to be. Also called the
audience the audience to be served by our
project includes key demographic
information (i.e.; age, sex etc.).The
specific population intended as
beneficiaries of a program. This will be
either all or a subset of potential users,
such as farmers, businessmen, rural
residents, or the residents of a particular
geographic area. A population to be
reached through some action or
intervention; may refer to groups with
specific demographic or geographic
characteristics. The group of people you
are trying to reach with a particular
strategy or activity. The target population
is the population I want to make conclude
an ideal situation; the sampling frames to
matches the target population. A specific
resource set that is the object or target of
investigation. The audience defined in
age, background, ability, and preferences,
among other things, for which a given
course of instruction is intended.


This involves figuring out how many

samples one need.
The numbers of samples you need are
affected by the following factors:

• Project goals.

• How you plan to analyze your data.

• How variable your data are or are

likely to be.

• How precisely you want to measure

change or trend.

The number of years over which you want

to detect a trend.
• How many times a year you will
sample each point.

• How much money and manpower you



I have targeted 200 people for the

purpose of the research. The target
population influences the sample size. The
target population represents the Haryana
regions. .The people were mainly farmers,
landlords and businessmen.
The details of our sample are explained in
chapter named primary research where
the divisions
are explained in demographics section.


There is interviewer bias in the

questionnaire method. Open-ended
questions can be biased by
the interviewer’s views or probing, as
interviewers are guiding the respondent
while the
questionnaire is being filled out. The
attitudes the interviewer revels to the
respondent during the interview can
greatly affect their level of interest and
willingness to answer openly. As
interviewers , probing and clarifications
maximize respondent understanding and
yield completer answers.


The questionnaire designing has to careful

so that only required data is concisely
reveled and there is no redundant data
generated. The questions have to be
worded carefully so that the questions are
not loaded and does not lead to a bias in
the respondent mind.


The respondents selected to be

interviewed were not always and willing to
co operate also in most cases the
respondents to not have knowledge,
opinion, attitudes or facts required


We have taken the sample size of 200,

which cannot determine the buying
behavior of the total population. The
sample has been drawn from only from
Palwal and near by places in Haryana.


Research design is a conceptual structure

within which research was conducted. A
research design is the detailed blueprint
used to guide a research study towards its
objective. It is a series of advanced
decision taken together comprising a
master plan or a model for conducting the
research in consonance with the research
objectives. Research design is needed
because it facilitates the smooth sailing of
the various research operations, there by
making research as efficient as possible
yielding maximum information with
minimum effort, time and money.

Scope of the study :

• This study is aimed at providing the
success of Escort tractors as well as
customer’s response and awareness of
the brand, product and services of
Escorts Limited.

• The data has been analyzed and

presented in a simple and precise way
on the basis of which pertinent
recommendations to the company to
better the services, policies, strategies
of the company.

Limitations of the study:

• The scope of the study is limited to the
respondents are selected from Palwal
and near by places in Haryana.

• The project is carried out for the period

of 60 days.

• Measurement of customer satisfaction

is complex subjects, which uses non-
objectives method, which is not

• The sample unit was also 200.

• However, Escorts limited ( tractor
showrooms) are located in other
places i.e. locally and even in the
neighboring states. Only opinion of
respondents of Palwal and near by
places was considered for finding out
of opinions of respondents.



‘Consumer buyer behavior refers to the

buying behavior of final consumers –
individuals and households who buy
goods and services for personal
consumption.’ (Philip Kotler)

‘To understand the buyer, and to create a

customer out of him, through this
understanding, is the purpose of buyer
behavior.’ (Ramaswamy and Namakumari)

It needs to be specified at the outset that

there is no unified, tested and universally
established theory of buyer behavior.
What is available today, are certain ideas
of buyer behavior.



A number of factors influence buyer

behavior. They can be grouped under
three broad

1.Factors that are part of buyer as an

2.Buyer’s social environment (group

3.Information from a variety of sources.

1. Factors that are part of the Buyer as an


An individual’s religion and cultural

background, his personality traits, self
concept, his general endowments, his
upbringing – in short, his overall bio data –
play a crucial role in his conduct as a
buyer/consumer. These factors can be
grouped broadly into three categories:

i.Personal factors

ii.Cultural factors

iii.Psychological factor
1. Personal Factors – Age, Education,
Economic Position, Self concept.

An individual’s age, level of education, his

occupation, overall economic position and
lifestyle all influence his role as a buyer.
They decide what products he will buy and
consume. A person’s self concept and his
concern about his about status also
influence his buying decisions. In fact
today people are very concerned about
their image and status in society. It’s a
direct outcome of their material
prosperity. Status is announced through
various symbols like dress, ornaments,
possessions and general lifestyle. The
desire for self expression and self
advancement is closely linked with social
status. For several people, status is a
major motive force guiding and shaping
their life. Their concept of status decides
what material possessions they should
have. Even if a product that constitutes a
status symbol is beyond their immediate
reach, their aspiration to possess it will
influence their decision making process.

ii. Cultural Factors – Religion, Language

Every culture, every language and every
religion group dictates its own unique
patterns of social conduct. Within each
religion, there may be several sects and
sub sects; there may be orthodox groups
and cosmopolitan groups. In dress, food
habits or marriage – in almost all matters
of individual life – religion and culture
exercise an influence on the individual,
though the intensity may vary from
society to society. The do’s and don’ts
listed out by religion and culture impacts
the individual’s lifestyle and buying

iii. Psychological Factors – Beliefs,

Attitudes, Motivation, Perception.

Just like the economic and social

conditions, a man’s disposition too has a
close bearing on his purchase decisions.
Individuals coming under the same
economic and social groups can be vastly
different when it comes to certain
personal beliefs, faith and attitudes. One
may be timid and plain, while another may
be outgoing and aggressive. One may be
traditional in the overall view of life, while
another may be modern. One may be east
innovative, while another may welcome
anything new. In fact, the maximum
variations are seen here and in the matter
of analysis and assessment too, this area
poses maximum problem to the marketer.

2. Buyer’s Social Environment (group

The buyer living in a society is influenced
by it and is in turn influencing its course of
development. He is a member of several
organizations and groups, both
formal and informal. He belongs to a
family, he works for a certain firm, he may
be a member of a professional forum, he
may belong to a particular political group,
or a cultural body. There is constant
interaction between the individual and the
groups to which he belongs. And all these
interactions leave some imprint on him,
which influences him in his day today life
and consequently, his buying behavior.
There are two broad types of group
• Influence of intimate group.

• Influence of the broad social class.

I. Influence of Intimate Group

Examples of intimate groups are family,

friends, close colleagues and closely knit
organizations. These groups exercise a
strong influence on the lifestyles and the
buying behavior of its members. Among
these groups the most influential and
primary groups are the family and peer
groups. The peer groups are closely knit
groups composed of individuals, who have
a common social background and who
normally belong to the same age group.
The peer group has the greatest influence
on the individual member as a stabilizer of
styles and behavior patterns.
In any intimate group, there is likely to be
an informal group leader. Te group
respects him and looks up to him. Though
the leader may not directly influence
every member in his day to day
purchases, his judgment on men and
matters, and facts and fashion is
respected by the group; and his views and
lifestyle influences their buying decisions.
He is normally the innovator in the group,
who first tries new products and new
ideas, and then, he becomes the
propagator of those products and ideas.
These opinion leaders or influencers play a
key role in marketing. Marketers often try
to reach these leaders first through
advertisements and other means of
communication. And if the leaders are
convinced , their groups are likely to
follow the suit.

2. Influence of the Broad Social Class

Structurally, the social class is a larger

group than the intimate groups. The
constitution of a social class is decided by
the income, occupation, place or
residence, etc. of the individual members.
The members of a social class enjoy more
or less the same status or prestige in the
community. They share a common
lifestyle and behavior pattern. And they
normally select a product or brand that
caters to their class norms. Often they
even do their shopping in the same
shopping are and patronize selected
shops, which befit their class image. This
does not mean that all the members of a
given social class will buy the same
products and the same brands or conform
to the same style, amounting to a sort of
regimentation. Differential liking may exist
among the members. But, in a buying
situation in which objective standard are
not available to guide them, they may
conform to the ‘class norms’. Studies have
shown that the extent of influence the
social class has on its members will
depend on the extent of attractiveness of
the group holds out to them. The greater
the attractiveness, the larger is the
behavioral conformity.
Study of group influence on the individual
buying behavior will help the marketers to
develop right strategies for different
customer segments. It is not feasible for
them to appeal to the fancies of every
individual buyer. They can find
’commonalities’ or ‘pattern’ among
specific groups of buyers and work on

iii. Information from various sources

The buyer today is exposed to a veritable

flood of information, unleashed on him
from different sources. These sources
inform him about new products and
services, improved versions of existing
products, new uses for existing products
and so on. The information sources that
persuade people to try a product include:
advertising, samples and trials, display in
shops and salesmen’s suggestions.
Each of these sources provides some
information to the buyer about the
products. When the buyer sees an
advertisement for a product, he is
informed about the existence of the
products. Later on, he may develop a
positive or negative attitude towards the
product or he may remain neutral. In any
case, a piece of information about the
product is made available to him and it
has some influence on his buying
The availability of the product in the shop
itself acts as an information source to the
buyer. The buyer may evince an interest
in the product and may inquire about it.
The product advertises itself.
Often salesmen serve as a source of
information to buyers. The salesmen may
inform the prospects about a product,
explain its advantages and may even
suggest a trial purchase. In cases where a
rapport has already been established
between the buyer and the salesman, the
latter’s suggestions are normally taken as

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 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

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 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

1951 - Escorts established India’s first

private Institute of Farm Mechanisation at

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.

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

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

1979 - Collaboration with JCB Excavators

Ltd., UK for manufacture of excavators.

1980 - Foray into healthcare, Escorts

Hospital and Research Center set up in

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


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

1989 - Joint Venture with Claas of

Germany to manufacture harvester

1990-91 - First Public Issue in February

1991, over-subscribed four times. Shares
listed on Delhi and Bombay Stock

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

1998 - POWERTRAC series of tractors


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


2005 – Divested Escorts Heart Institute

and Research Centre (EHIRC) to Fortis

2006 - Divested in Carraro India Ltd.

Set up new manufacturing facility in

Rudrapur for manufacture of new range of
railway equipment.



At Escorts Limited, we are committed to

making a positive difference in the socio
economic fabric of the rural communes
where we operate in. Being in a position of
advantage, we recognize our responsibility
in fostering sustainable development in
the rural communities. We strive to earn
the respect and trust of our stakeholders,
be it the employees who work for us, the
customers who buy our products or the
environment that we work in. In the last
two decades, Escorts has made a
concerted effort in making the benefit of
progress reach the backward section of
the community.


Escorts Limited is committed to providing

a safe, secure, fair and stimulating work
environment to its employees that
empowers them to not only make a
meaningful contribution to the
organization’s performance but also helps
in personal and professional growth of the
The company has implemented systems
that promote safety at workplace and
have contributed to reductions in lost time
injury rates. Educative seminars are
conducted on a regular basis for workers
where they are exposed to various
training and skill development
programmes including Fire Fighting
demonstration & training, safety seminars
etc. to euip employees to work safely. We
also provide effective rehabilitation
programs for our employees. At Escorts,
health awareness drives are a regular
occurrence where workers are given
counseling on personal hygiene, polio
awareness, eye care and general health.
We also organize health check up camps
for our employees and their families. For
children of our employees, we regularly
organize career counseling sessions to
help build their future.


 Agri Machinery.
 Escorts Institute of Farm

 Engineering Division.

 Railway Equipment.

 Auto Component.

 Construction Equipment.

Agri Machinery

 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

 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. India’s No.1 economy range –
engineered to give spectacular diesel
 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

• International Subsidiaries
 Escorts AMG has one international
 Farmtrac Tractors Europe Sp.z o.o.in
 We now cater to 41 countries.

• Functional Excellence

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

Beyond manufacture, Escorts has made

substantial investments towards the
modernization of farm technology. The
Escorts Institute of Farm Mechanization
(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.

• Knowledge Management

The Escorts Agri-Machinery Group

Knowledge Management Centre, set up in
1976, has a history of over twenty-nine
years. It is spread over 100000 Sq M (23
acre) area. It is equipped with modern
facilities set up with an investment of over
US $ 7.5 million.

It designs the entire tractor, defined as

engine, transmission plus hydraulic
systems and Vehicle design consisting of
sheet metal (including styling) plus
controls and accessories.

Virtual prototypes of components and

aggregate assemblies are made and
assembled on computer workstations
using 3D technology. The performance is
checked on computers using simulation
techniques thus saving a lot of time for
the end-user as well as lowering
development costs. The KMC uses
advanced 3D-modeling, analysis and
simulation software for engines,
transmissions and vehicles. Physical
prototypes are then extensively tested for
performance, durability and reliability.

The facilities include a high-technology

engine laboratory featuring fully
computerized test beds with online
control, data acquisition and analysis. We
can test engine emissions for meeting the
Bharat TREM norms, US Environmental
Protection Agency (EPA) norms and
European (Euro) norms. Additional
capabilities of the engine lab are engine
performance, durability, reliability,
tribology and fluid dynamics studies. An
advanced vehicle testing laboratory
includes fatigue testing, dynamometer
testing for chassis and power-take-off, and
smooth as sell as torture test tracks. Other
facilities include Noise Vibration and
Harshness (NVH) Lab., Metrology Lab., and
Materials Engineering Lab. Product styling
is carried out in a computerized virtual
environment, which is supported by a
model-making shop for physical

In addition to multi purpose tractors

ranges, a variety of special-purpose
tractors have been developed for
industrial applications as also non-
agricultural applications like Haulage,
Airport, potato and vineyard cultivation.

Escorts Institute of Mechanization

The Escorts Institute of Farm
Mechanization (EIFM), was established
way back in 1969 at Bangalore to expand
the potential of our intellectual capital.
Spread over 85 acres of fertile land, it is a
scientifically planned training complex
including training halls, model workshops,
and residential cottages and hostels
covering 14 acres of land with facilities
including canteens, dining halls, indoor &
outdoor recreational areas. Another 76
acres is dedicated to model and
demonstration farming.

EIFM provides training to farmers,

employees, dealers, salesmen, service in-
charge, parts in-charge, mechanics,
financial institutions, government
nominees, and agricultural and
engineering students.
EIFM is equipped with modern teaching
aids including multimedia, computer
learning centre, training literature in
several languages, technical films, slide
shows, extensive library for archival
materials on various farming techniques,
automobiles, agricultural engineering and

Railway Equipment
Escorts are a leading manufacturer of
critical railway components since the last
40 years. It is one of the oldest and most
trusted partners of Indian Railways, the
largest rail network in the world. Having
played a significant role in the growth and
modernization of Indian Railways, today it
is a multi-product, multi-technology
business at Escorts.

Broad Product Portfolio:

 Shock Absorbers
 Couplers
 Brake systems
 Brake Blocks

An ISO: 9001-20000 certified company,

Escorts manufactures products as per
international standards specified by UIC,
AAR and Indian Railways. The products are
exported to over 15 countries worldwide.
For railway equipment, the initial source of
technology has come from some of world
leaders in the arena like:
 Schaku of Germany for couplers
 Knorr Bremse of Germany for air
 REXLOK Resilient Rail Fastening
System , Suitable for all Rail Sizes and
the same clip suits any Sleeper / Tie,
 ICER of Spain for composite brake
 Vulcanite of Australia for vulcanised
rubber parts

A state of the art manufacturing facility

located at Faridabad, near New Delhi has
facilities for advanced product
development, design, testing and
validation. The in-house Research &
Development has played a critical role in
bringing about a high level of customer
satisfaction, reliability and safety - the key
drivers of business.

Escorts’ engineering experts have trained

over 8000 railway personnel of various
countries. As Asia’s largest manufacturer
of air brake systems, the conversion of
vacuum brake stocks to air brakes and
installation and commissioning of
complete brake systems on new builds are
also undertaken by Escorts.

Auto Component
The Engineering Division of Escorts Ltd. is
the leading manufacturer of auto
suspension products including shock
absorbers, struts and telescopic front
forks. Escorts was the pioneer in
Automotive Shock Absorber
manufacturing in India in 1966 in
Technical Collaboration with Fichtel &
Sachs, Germany. Over the years the
technology obtained from Fichtel & Sachs
of Germany has been continuously
upgraded and new reliable products have
been introduced. Another step forward in
this direction is a comprehensive technical
collaboration with world leaders Kayaba of
Japan. A strong in-house design and
development infrastructure of the Division
enables introduction of new applications
as per specifications of customers.

Broad Product Portfolio

 Shock Absorbers
 Front Forks

 McPherson Struts
Technical Collaboration
 Fichtel & Sachs, Germany (1966 - 75)
 Kayaba, Japan (for Motorcycle Front
Forks & Shock Absorbers) since 1998
Quality Systems
 Obtained TS:16949 in 2004 ( Earlier
ISO-9001 )
 Adopted KAYABA Quality Systems as a
subset of TS:16949
Business Philosophy
 Customer Satisfaction – QCD
 Continuous Benchmarking with
 KAIZEN - For Quality & Productivity

Production Capacity Per Annum: 5 million

(Shock Absorbers, Front Forks,
McPherson Struts
 2 Wheelers & 3 Wheelers - OEMs and
After Market
MUV / LCV / HCV - OEMs and After
Passenger Cars - After Market
Construction Equipment
Escorts manufacturers and markets a
diverse range of construction and material
handling equipment like cranes, loaders,
vibratory rollers and forklifts. The
company was a pioneer in introducing the
concept of Pick 'n' Carry hydraulic mobile
cranes in the 70s in India and continues to
be the world's largest manufacturer of
these cranes.
A nationwide network of 16 Sales Offices,
50 dealership locations, over 300
company trained dealers’ service
engineers, gives it the best market reach
in India for the Sales & Service of material
handling and construction equipment.
With over 30 years experience in
Construction Equipment Industry, Escorts
has a proven track record in :
Hydraulic Mobile Cranes
 Loaders
 Forklifts
 Vibratory Compactors

Today, it not only continues to be the

largest mobile crane manufacturer in the
country, but also the largest Pick ‘n’ Carry
Hydraulic Mobile Crane manufacturer in
the world.
While recording a rapid growth in Crane
Industry we’ve also been able to steadily
increase our presence in the field of
Vibratory, Soil & Tandem Compactors.
Escorts was the first to bring the concept
of Vibratory Compactors in India in a big
way, back in 80’s. Subsequently more
models in Tandem Vibratory Compactors
and heavy duty Soil Compactor range
were added in technical collaboration with
HAMM Germany. Recently, we’ve further
strengthened the range with a 3T
Shoulder Compactor. Today our range of
compaction equipments is one of the most
preferred in the market, and is being
viewed as the most efficient and effective
compaction solutions available in the

Along with Cranes and Compactors, we

also manufacture Frontend loaders with
payload capacity of 700kgs. Suitable for
narrow lanes and confined spaces, these
loaders are compact in design and are
ideal for garbage handling, handing of
chemicals, sands, small chips, etc.

Escorts also offers other material handing

solutions like Forklifts from Daewoo
Doosan Infracore Ltd., Korea and
Articulated boom cranes from Fassi, Italy.
In LPG Forklift category, the company
enjoys a market share in excess of 85%.

This single-minded pursuit of precision

and customer satisfaction has made us
the 3rd largest in terms of Construction
Equipment Sales unit per annum.


 Farmtrac
 Powertrac
 Escorts

Farmtrac brand are the most powerful
premium range of tractors that give
maximum productivity to the farmers.
Premium range - Powerful premium brand,
35 - 75 HP range
Powertrac brand of tractors are the most
fuel-efficient tractors in their respective
categories that offer excellent value for
money and have helped the farmers
improve their quality of life.

Value range – Value for money, Fuel

efficient, 30 - 55 HP range.

Escort brand of tractors are symbolic of
reliability and trust and enjoy the
confidence of the farming community for
the last 40 years.
Economy range - 2 cylinder, 27 - 35 HP,
Symbol of reliability since 40 years.
 Excellent in Performance
 Designed for 100% continuous
operation and longer service intervals
 Highly fuel efficient / Low operating
 Class A1 governing with 4% regulation
for stable operation in fluctuating load
 Low Noise and Vibration
 Compact size
 Cooling system designed for extreme
weather conditions
 Equipped with Pusher type fan for
better cooling in Stationary application
 Meets CPCB Emission norms
 Fitted with Coolant expansion bottle -
Does not require frequent topping up
 Easy and Low maintenance
 Quick start
 Plateau honed wet liners for longer life
and low oil consumption and better
service ability
 3 ring pack version Piston with ring
carrier for top ring for
 Longer life

 Low friction & Higher fuel efficient

 Chrome Plated top piston ring for
longer life & low lub oil consumption
 Valve stem seal for lower lub oil

Water pump with integral bearings and
unitized seal for longer leakage free
life of Pump

 Low cost of spares

 A key initiative of Escorts Ltd. in our
continuous endeavor to provide Total
Customer Satisfaction.
 Genuine Engine and Gear oils for the
complete range of Escorts tractors
developed to suit varying
temperatures and climatic conditions.
 Every drop of SURAKSHA embodies the
excellence that Escorts has gained
over 50 years experience in tractor
manufacturing and reflects its keen
understanding of the Indian farmer
and his tractor.
 "SURAKSHA" - the protective shield for
the tractor - tailor made for enduring
performance year after year.
Escorts Construction Equipment
The range of material handling and
construction equipment products are
manufactured and marketed under the
brand ECEL (Escorts Construction
Equipment Limited). ECEL has earned
market leadership through constant
innovations of product technology and
features. ECEL has come to be
synonymous with Strength, Reliability and
An ISO: 9001-20000 certified company,
Escorts manufactures railway equipment
as per international standards specified by
UIC, AAR and Indian Railways.
Asia’s largest manufacturer of air brake
systems, the conversion of vacuum brake
stocks to air brakes and installation and
commissioning of complete brake systems
on new builds are also undertaken by

Diverse product range:

 Shock Absorbers (Oil Dampers) for
coaches, locomotives, EMUs, MEMUs,
DMUs, Metro and Rail Cars

 Air brakes for coaches, Freight cars,

DMU and OHE Cars

 Automatic/Semi Permanent Couplers

for EMUs, DEMUs, MEMUs

 Electro Pneumatic Brake Systems for

EMUs and MEMUs
 Composition brake blocks for coaches,
locomotives, freight cars and EMUs

 Rail fastening systems for wooden,

steel and concrete sleepers
 Direct Admission Valves for vacuum
braked coaches

 Testing equipment for brake systems

and shock absorbers

 Air brake accessories for passenger

coaches, freight cars, locomotives and
self propelled vehicles
 Metal to rubber bonded vulcanized

 Automatic twist locks for container

freight cars

Escorts’ leadership in auto suspension

products in India comes through
continuous improvement in
manufacturing technology and
expansion of product range to cater to
OEMs of all vehicle categories, including
passenger cars, commercial vehicles,
multi-utility vehicles, motorcycles,
scooters and mopeds.

Escorts Limited, the flagship company of

The Escorts Group is a leading
manufacturer and supplier of Agri
Machinery Products, Auto Suspension and
Ancillary Products and Railway Equipment.

Registered Office
SCO-232, First Floor
Sector-20, Panchkula-134109

Corporate Centre
15/5 Mathura Road, Faridabad – 121 003
Phone: 0129 – 2250222
Fax: 0129 – 2250058, 225006
Board of Directors
Mr. Rajan Nanda, Chairman
Mr. Nikhil Nanda, Joint Managing Director
Dr. P S Pritam, Director
Dr. M G K Menon, Director
Dr. S A Dave, Director
Mr. S C Bhargava, Director

Compliance Officer
Mr. G B Mathur
Executive Vice President
Law and Company Secretary

Statutory Auditors
M/s S N Dhawan & Co.
Member Firm of Mazars Worldwid
Internal Auditors
M/s Grant Thornton

Financial Year
1st October to 30th September

Listing on Stock Exchanges

The Company's shares are listed at :
1.The National Stock Exchange of India
Ltd., Trade World, Senapati Bapat Marg,
Lower Parel, Mumbai - 400 013.

2.The Stock Exchange, Mumbai, Phiroze

Jeejeebhoy Towers, Dalal Street,
Mumbai - 400 001

3.Delhi Stock Exchange Association Ltd.

DSE House, 3/1, Asaf Ali Road, New
Delhi - 110 002
As commercialization of agriculture grew
in intensity in the mid to late 1800s the
British Raj and the local legislatures and
provinces began investing in agricultural
development through support and
establishment agricultural research farms
and colleges and large scale irrigation
schemes yet the level of mechanization
was low at the time of independence in
1947. The socialist oriented five year
plans of the 1950s and 60s aggressively
promoted rural mechanization via joint
ventures and tie-ups between local
industrialists and international tractor
manufacturers. Despite this
aggressiveness the first three decades
after independence local production of 4-
wheel tractors grew slowly. Yet, by the
late 1980s tractor production was nearly
140,000 units per year and by the late
1990s with production approaching
270,000 per year, India over-took the
United States as the world's largest
producer of four-wheel tractors with over
16 national and 4 multi-national
corporations producing tractors today.
Despite these impressive numbers FAO
statistics estimate that of total agricultural
area in India, less than 50% is under
mechanized land preparation, indicating
large opportunities still exist for
agricultural mechanization.

1945 to 1960
War surplus tractors and bulldozers were
imported for land reclamation and
cultivation in mid 1940's. In 1947 central
and state tractor organizations were set
up to develop and promote the supply and
use of tractors in agriculture and up to
1960, the demand was met entirely
through imports. There were 8,500
tractors in use in 1951, 20,000 in 1955
and 37,000 by 1960.

1961 to 1970
Local production began in 1961 with five
manufacturers producing a total of 880
units per year. By 1965 this had increased
to over 5000 units per year and the total
in use had risen to over 52,000. By 1970
annual production had exceeded 20,000
units with over 146,000 units working in
the country.

1971 to 1980
Six new manufacturers were established
during this period although three
companies (Kirloskar Tractors, Harsha
Tractors and Pittie Tractors) did not
survive. Escorts Ltd. began local
manufacture of Ford tractors in 1971 in
collaboration with Ford, UK and total
production climbed steadily to 33,000 in
1975 reaching 71,000 by 1980. Credit
facilities for farmers continued to improve
and the tractor market expanded rapidly
with the total in use passing the half
million mark by 1980.

1981 to 1990
A further five manufacturers began
production during this period but only one
of these survived in the increasingly
competitive market place. Annual
production exceeded 75,000 units by 1985
and reached 140,000 in 1990 when the
total in use was about 1.2 million. Then
India - a net importer up to the mid-
seventies - became an exporter in the
1980s mainly to countries in Africa.

1991 to 1997
Since 1992, it has not been necessary to
obtain an industrial license for tractor
manufacture in India. By 1997 annual
production exceeded 255,000 units and
the national tractor population had passed
the two million mark. India now emerged
as one of the world leaders in wheeled
tractor production.

1997 to 1999
Five new manufacturers have started
production since 1997. In 1998 Bajaj
Tempo, already well established in the
motor industry, began tractor production
in Pune. In April of the same year New
Holland Tractor (India) Ltd launched
production of 70 hp tractors with matching
equipment. The company is making a $US
75 million initial investment in a state of
the art plant at Greater Noida in Uttar
Pradesh state with an initial capacity of
35000 units per year. Larsen and Toubro
have established a joint venture with John
Deere, USA for the manufacture of 35-65
hp tractors at a plant in Pune, Maharashtra
and Greeves Ltd will produce Same
tractors under similar arrangements with
Same Deutz-Fahr of Italy. Looking to South
American export markets Mahindra and
Mahindra are also developing a joint
venture with Case for tractors in the 60-
200 hp range. Total annual production was
forecast to reach 300,000 during the
following year.

1999 to Present

Facing market saturation in the traditional

markets of the north west (Punjab,
Haryana, eastern Uttar Pradesh) tractors
sales began a slow and slight decline. By
2002 sales went below 200,000.
Manufacturers scrambled to push into
eastern and southern India markets in an
attempt to reverse the decline, and began
exploring the potential for overseas
markets. Sales remained in a slump, and
added to the market saturation problems
also came increased problems of
"prestige" loan defaults, where farmers
who were not financially able took tractors
in moves to increase their family’s
prestige. There is also reported increased
misuse of these loans for buying either
lifestyle goods, or for social functions.
Government and private banks have both
tightened their lending for this sector
adding to the industry and farmers woes.
By 2004 a slight up tick in sales once
again due to stronger and national and to
some extent international markets. But by
2006 sales once again were down to
216,000 and now in 2007-08 have slid
further to just over 200,000.

Balwan Tractors, Force Motors Ltd

Formerly known as Bajaj Tempo Ltd.

until 2005, Force Motors Ltd.,
makers of India's ubiquitous 3-
wheeler Tempos since 1957 in a
collaboration with Vidal & Sohn
Tempo Werke, Germany.
In 1999 began production
of Ox and Ox 45 Brand Tractors
both which incorporated
transmission technology from the
German manufacturer ZF.
Additional line Balwan was
introduced in 2004 and between
the lines Force Motors offers a line
of two-wheel and four-wheel
tractors in a horsepower range
from 10 - 50 HP.

Captain Tractors Pvt. Ltd

Founded in May 1994 and located

in Rajkot, India, Captain Tractors
manufactures mini-tractors under
the Captain brand.


In 1949, Eicher GoodEarth, was set up in

India with technical collaboration with
Gebr. Eicher a of Germany, imported and
sold about 1500 tractors in India. In April
24, 1959 Eicher came out with the first
locally assembled tractor from its
Faridabad factory and in a period
from 1965-1974 became the first fully
manufactured (100% indigenization)
tractor in India. In December, 1987 Eicher
Tractors went public and in
June, 2005 Eicher Motors Limited sold
Eicher Tractors & Engines to a subsidiary
of TAFE called TAFE Motors and Tractors
Eicher also produced tractors under
the Euro Power and Eicher Valtra brands
under license from Valtra, an AGCO brand.

Escorts (Escort, Powertrac and


Escorts Ltd began local manufacture

of Ford tractors in 1971 in
collaboration with Ford, UK and
total production climbed steadily
to 33,000 in 1975 reaching 71,000
by 1980. Ford (Ford - New
Holland) was sold in 1992. Ford
Motor Company proper quit the
tractors business, but the name
was allowed to continue as per
agreement until 2000, when
Escorts relabeled its Ford models
under the Escort brand. Escort
manufactures produces tractors in
the 27-75 HP range and has
already sold over 6 lac tractors. Its
tractors are marketed under three
brand names,
Escort, Powertrac and Farmtrac.

HMT Tractors

HMT is a large public sector unit and

began manufacturing Agricultural
Tractors in 1972 under the HMT
brand name with technology
acquired from Zetor of the Czech
Republic. It manufactures its
tractors in Pinjore, Mohali in a
large factory that also
manufactures machine-tools,
and Hyderabad It has a capacity of
20,000 tractors per annum. In the
Machine-tool company is a large
foundry. It produces tractors in a
range from 25 HP to 75 HP. For a
short time, HMT exported tractors
to the USA under the Zebra brand,
which were marketed by Zetor
distributors and dealers there.
The company is controlled by the
Ministry of Heavy industry that
provides, on a monthly basis to
the public its financial

Mahindra & Mahindra

M&M's Farm Equipment Sector origins lie

in a joint venture in 1963 between the
Company, International Harvester Inc.,
and Voltas Limited, and was
named International Tractor Company of
India (ITCI). In 1977, ITCI merged with
M&M and became its Tractor Division.
After M&M's organizational restructuring
in 1994, this division was called the Farm
Equipment Sector. The Farm Equipment
Sector has also ventured into
manufacturing of Industrial Engines. M&M
Industrial engines are used for various
applications like generator sets, industrial,
construction, marine, compressors, etc.
These engines are manufactured at the
Company's engine assembly plants at
Kandivli and Nagpur. M&M has two main
tractor manufacturing plants located at
Mumbai and Nagpur in Maharashtra. Apart
from these two main manufacturing units,
the Farm Equipment Sector has satellite
plants located at Rudrapur in Uttarachal
and Jaipur in Rajasthan. The Farm
Equipment Sector as reported by the
Company has a dealer network of over
450 dealers. This dealer network is
managed by 28 area offices, situated in all
the major cities and covering all the
principal states and M&M tractors has sold
more than 13,00,000 tractors since its
inception. M&M's Farm Equipment Sector
is perhaps the largest exporter of Indian
tractors to the USA and the west. And in a
reversal to earlier trends of Indian tractor
manufactures with joint ventures with
western tractor companies, M&M,
in2004 announced that they had bought
majority stake (80%) in Jiangling Tractor
Company, and renamed it Mahindra
Jiangling Motor Co Group (JMCG). This is
the first instance of Indian tractor
industries participating in India's reverse
FDI. The plant in China reportedly has a
production capacity of 12,000 tractors
In March 2007, M&M bought a controlling
43% stake in the Mohali-based tractor firm
Punjab Tractors (Swaraj) that will
reportedly increase M&M's share in the
domestic farm equipment market from
just over 30% to 40%. The 43% stake
includes 29% owned by private equity
firm Actis Capital and 14.2% by the Delhi-
based Burman family. In July 2007,
Mahindra upped its stake to 64.6%

New Holland

New Holland Ag's entry into India was

facilitated by FIAT's acquisition of
Ford-New Holland in 1991. By
1998 New Holland Ag. (India)
completed the construction of a
new plant in Noida, near New
Delhi, with a capacity of 5000
tractors in the 35 - 75 hp range. In
1999, New Holland Ag.'s parent
company FIAT bought 70% of
holdings of Case Corporation and
created Case New Holland Global
(CNH one of the top three
machinery manufacturers in the
world), the new holding company
New Holland Ag. (India). In 2000,
the capacity of the Noida plant
rose to 12,000 tractors per year
and in 2007 the company
manufactured 24,000 tractors for
the domestic and export
markets.New Holland India
exports fully-built tractors to 51
countries in Africa, Australia,
South-East Asia, West Asia, North
America and Latin America.The
India plant of New Holland was
originally built in 1998 to cater
only to India domestic market.
However due to slow down of
economy by year 2001-2002 and
slump in domestic demand, it
became a challenge to utilize the
installed capacity of the
factory.Hence the company
started looking its market beyond
India borders. Its then CEO Mario
Gasparri guided the vision and
handed over the task of overseas
business to its dynamic manager
Bhanu Sharma. The efforts paid
off well. Bhanu Sharma in capacity
of Head-International Business
Operations, took op the export
volumes from the level of almost
nil in 2003 to 8000 units in year
2007. The export business last
year in 2007 contributed over 50%
of the company business of total
USD 250 millions.This also made
New Holland the second largest
tractor exporter from India after
John Deer. In year 2007, India
exported around 32,000 tractors
of which 25% share was of New

Punjab Tractors Ltd (Swaraj Tractors)

In 1965, Government of India research

institute Central Mechanical Engineering
Research Institute, Durgapur, WB initiated
design and development of Swaraj
Tractor based on indigenous know-how.
In 1970, Punjab Government acquired the
Swaraj tractor's design and established
Punjab Tractors Limited (PTL). It was
India's first large-scale totally indigenous
project. The company exports Tractors to
various countries including USA. It
manufactures nine models of tractor and
several models of combine harvesters.
The manufacturing units are located at
Mohali District, Asron Village of
Nawanshahar District and Nabha of Patiala
District, Punjab. Today swaraj tractor in no
2 brand in indian after Mahindra
tractor.More than 800000 lacs tractor sold.
The popular models sold under SWARAJ
brand are:
Swaraj also manufactures Forklifts and
Combines, which are assembled in their
Mohali Plant.
Actis Capital, a private equity firm
acquired 29% of Punjab Tractors in mid-
2003 from the Punjab Government. In
March 2007, and currently subject to the
receipt of requisite approvals, M&M
bought a controlling 43% stake in Punjab
Tractors Ltd. that will reportedly increase
M&M's share in the domestic tractor
market from just over 30% to nearly 40%.
The 43% stake in Punjab Tractors includes
the 29% owned by Actis Capital and
14.2% by the Delhi-based Burman family.
In July 2007, Mahindra upped its share in
Punjab to 64.6%.

Sonalika (International Tractors Ltd.)

International Tractors Limited was

incorporated on October 17, 1995
and began manufacturing tractors
designed by Central Mechanical
Engineering Research Institute
(CMERI). ITL currently is
manufacturing Sonalika tractors
between 30 HP to 90 HP, and
the CERES brand between 60HP to
90HP. ITL went into collaboration
with Renault Agricultural of
France in July 2000. Renault
Agriculture is a subsidiary of
the Renault Group. Renault
Agriculture was bought
by CLAAS of Germany in 2003.
Incidentally CLAAS already has a
strong presence in India market
producing its Crop Tiger range of
Combine Harvesters in a plant
in Faridabad (near New Delhi)
since 1992.


Building on the success that it reaped in
the light-truck segment, TATA Motors
introduced apassenger vehicle version of
its one-toner - “Ace”. The new Multi
Purpose Vehicle (MPV) ispositioned against
Maruti’s “Omni” and has been
aggressively priced so as to open up
thecompetition in that domain. The Omni
is priced between Rs. 2.3 lakh and Rs. 2.5
lakh (ex-showroom Mumbai).
“TATA Motors is following almost the same
strategy that it used with Indica -
multiple variants built-up on the same
platform. The platform being used for
“Ace” is versatile
and it is exploring innovations on that
platform”, confirmed a source close to
TATA Motors.
The source also indicated that the launch,
of the same, was strategically slated for a
year before
TATA Motors’ much-hyped people’s car
gets on to the roads. The new MPV will
target the
same market segments, semi-urban and
rural, where the Rs. 1 lakh car is expected
to make a big
uproar. The Ace will be used to test the
potential of the market and the
distribution network of
TATA Motors’ in these specific regions. A
spokesperson was also found to say: “At
any given
point in time TATA Motors is working on
various innovations. We cannot comment
Also spotting the potential in the MPV
segment is - Bajaj Auto, which is also
working on similar
lines, to attain faster-than-industry-
average growth, BAL has identified MPVs
as a potential
growth segment. Bajaj Auto’s managing
director Rajiv Bajaj had said, “The middle
(between two and four-wheelers) can
spawn a range of ‘lite’ vehicles — a diet
version if you will
— and that’s something we will look at.
We are intending to get into a family of
‘lite’ four
wheelers, both for people and goods. We
will get into that business first with a
goods carrier.”
Another possible player in the same
segment could be “Hero”, which also
plans to foray into the
four-wheeler segment. Hero Honda MD
Pawan Kant Munjal said that – “The group
would get
into four-wheelers as a natural extension
of its bike business”, but he declined to
specify whether
it would be passenger cars, light
commercial vehicles or other passenger
Maruti’s Omni, presently, the only player
in the MPV segment, has sold around
65,350 units in
the April-January period, depicting an
astounding growth of 27 percent. This pips
the 21 to 22
percent growth in the overall passenger
car segment. The Omni is popularly
viewed as a people
mover in small towns and as a freight
vehicle in cities. Maruti has also
introduced some cheaper,
fuel-efficient versions of Omni that run on
“Environment-friendly” gases - LPG and
considerably reducing the operational and
maintenance costs to the consumer.
The success of “Ace” opened up a whole
new segment in the market of commercial
vehicles and
has led to other players like Bajaj Auto,
Ashok Leyland and M&M queuing up to
acquire a
chunk of the ultra-light truck market.

A PEST analysis is concerned with the
environmental influences on a business.
The acronym stands for

 Political

 Economic

 Social

 Technological

Political Factors:

The major risk associated with the Tractor

Industry continue to be dependence on
monsoon and
availability of finance from the Banks. The
second monsoon was lower than the
normal in more
than half of the areas across India leading
to reduced Rabi sowing by 3% in
comparison to last year. However, this is
likely to be compensated by more
productivity and better realization of the
produce in the coming months. Credit flow
to the agricultural sector has been slow
anticipated because of the settlement of
the debt waiver cases by the Banks and
the release of
fresh loans to the farmers. Govt. has
directed the PSU Banks to increase their
lending to achieve
the enhanced target of financing fixed for
the agricultural sector. The continued slow
down of
demand in the American and European
countries may have ripple effect on export
of tractors and
realization of proceeds from these


The Company continues to focus on its

Agri Business. However, it has changed its
focus from
the high volume, low profit products to
high margin products to create a niche in
the higher HP
Models. At the same time, the Company is
pursuing Value Engineering in the low
tractors to improve its margin and re-
launch the same. AMG has constituted a
Forward Planning
Group within the Company to envisage its
strategy and vision for the next 5 years.
Company has an appropriate internal
control system for business processes with
regard to efficiencies of operations,
financial reporting and compliance with
applicable laws and regulations etc. Your
Company has appointed Grant Thornton
International as our Internal Auditors
which works under the directions of an
Audit Committee constituted as per the
guidelines. The Internal Audit Reports are
reviewed by the senior management and
placed before the Audit Committee of the
Board of Directors.


The Company, in its endeavor, to serve
community continued to contribute in the
various activities around the Units. The
Company, during the year, organized
Eyes/Health Check up Camps, Blood
Donation Camps, sponsored Sports
activities at the District and State level in
the State of Haryana. It carried out the
Career Counseling Session for the children
of the employees of Escorts. The Company
has a Scholarship Scheme for the
deserving children of the Employees of
Escorts and gives scholarships. The
Company has spent Rs. 68 lakhs on the
same during the year.

To keep pace with competition and
advances in technology, Escorts
Knowledge Management
Center (KMC) established in 1976 is a
world class R&D with facilities for design
and product
evaluation to deliver quality and trouble-
free products. The entire tractor system,
from the engine
to transmission and hydraulic systems as
also vehicle design from body work to
controls and accessories is developed at
the KMC. We are the first Indian company
with in-house R&D capabilities to certify
engines for US EPA and EURO-VCA. The
quest for technological excellence is
further proven through the modern R&D
centre and Quality and Testing
laboratories set up at various plants of our
Engineering Division deploying latest
servo-hydraulic testing systems (MTS) and
cam drum rigs for durability and life tests.


Escorts Limited has proven through its

performance in fiscal 2007-08 that the
efforts to
strengthen the fundamentals of the
company, sharpen focus on core
strengths, build value for
customers and drive operational
efficiencies have put the company on a
profitable track. Of the
many initiatives that were undertaken, the
biggest contributor has certainly been the
initiatives in
revamping the economics of the business
by focusing on cost compression.
A slew of initiatives has resulted in a
saving of over Rs. 100 crore by eliminating
waste, working more efficiently, right-
sizing the work force, reduction of held
stock and negotiating better prices from
our suppliers. Company engineering
strength built over several decades gives
us this competitive advantage to
continuously develop new products,
advance our processes and develop
customer friendly solutions.

 Diversified Products on the list and the
concentration each product receives
decreases accordingly.

 Huge customer base has made the

online service slow.
 High reliance on imported raw material
imports creating potential price /
available issues.

 Realization per metre is still lower than


 Flexibility in the organization.


There is data available in case of

registered motor vehicles, but for carts
and bicycles, there is no published
information. Also, no reliable source of
information is available regarding vehicle
penetration into rural areas. A few studies
have been found to indicate the following:
 50% of the villages have the
population less than 500.
 60% villages do not have acess to
 Smaller the village, lesser the
economic activity, and therefore,
lesser the number of vehicles.

Carts ferry only about 15 percent of the

tonne-km of goods whereas trucks carry
about 83percent. India is highly under-
motorized. The penetration levels of cars,
two-wheelers, buses and other
commercial vehicles stand at 7, 45, 0.7
and 4 per thousand persons, respectively.
These levels of penetration only signify an
even lesser extent of the same in rural
areas. Railways, good roads and
reasonably taxed vehicles, all together,
would enable the transport of goods
between rural production bases and urban
centers of consumption. It definitely is not
a question of either but is one that has to
consider both.
Public transport needs to be enhanced and
taxes need to be reduced. Taxes add to
about 50percent of the vehicle cost, in
India. Export schemes have been
withdrawn, Multi-Utility Vehicles (MUVs)
are taxed at a uniform rate of 16 percent
and some other cars at 24 percent.

World Bank has projected world output to
grow by a mere 0.9% in 2009 compared to
2.5% in2008 and a high of 4% in 2006.
Growth in the developing countries as a
whole is expected to fall from 6.3% in
2008 to 4.5% in 2009, only to recover to
6.1% in 2010. This is mainly due to China
and India. India, being largely domestic
dependent economy, is expected to show
a growth of 6% to 7% during 2008-09 and
2009-10. Major effect of the decline in
growth is coming in the manufacturing
sector and the services sector. It is
expected that the decline in these sectors
will be compensated by high growth in the
agricultural sector.


In order to find out customer satisfaction

& Perception regarding the Escort tractors.
Primary Data was collected by personally
visiting the dealerships and showrooms.
With the help of a questionnaire we took
the survey in various villages in Palwal
district of Haryana. As well as we
contacted some of the customers through
tele calling by taking the data about the
customers from the customer data
register of the dealership. We interviewed
them and discussed with the dealers as
well as with the employees at Escorts
which helped us to prepare our research


The Secondary Data collection involved

internet search, browsing magazines,
newspapers and articles and papers
related to the Escort industry in India.
Numerous Journals and books related to
the topic were also browsed to understand
the dynamics of the industry.


Source: Questionnaire

Table No.1 Satisfaction towards Escorts

70% 30%

Interpretation 1

The sample drawn on probability basis

shows that 70% of the customers are
satisfied with Escort tractor and only 30%
are dissatisfied.

Most of the respondents approached were
satisfied with the tractor.

Table no.2 Factors affecting customer

satisfaction towards Escort tractor.

Factor No of Percentage%
Features 24 12
Low 80 40
Comfort 23 11.5

Style 20 10
After sales 53 26.5

Interpretation 2

The sample drawn on the probability basis

clearly shows that 40% (80respondents)
are of the opinion that low maintenance
cost is the satisfaction factor for Escort
tractor and 26.5%(53 respondents) of
them view After sales service as a vital
factor for customer satisfaction. Followed
by features which corresponds to 12%(24
respondents), comport with 11.5%(23
respondents) and only 10% (20
respondents) of them view that style of
Escort tractor as satisfaction factor.


Majority of the respondents are of the idea

that low maintenance of the top most
feature contributing to customer
satisfaction followed by after sales
service, features, comfort and style.
Table no.3 Customer opinion towards fuel

Factor Percentage%
Extremely satisfied 27%
Satisfied 49%
Neutral 17%
Dissatisfied 7%
Total 100%

Interpretation 3: 100% of the respondents,

49% of the respondents approached were
satisfied with the fuel consumption.
Followed by 27% was extremely satisfied,
17% are neutral and rest of the 7% is
more dissatisfied with fuel consumption of
Escort tractor.

Observation: as majority of the

respondents are satisfied with the fuel
consumption of Escort tractor, the
company should maintain the standard
and it is suggested to come up with
suitable measure to reduce the negative
opinion among the consumer who are of
the opinion that the fuel consumption is a
dissatisfying factor.

Table no.4 Customer opinion toward

safety and comfort.

Factor Percentage%
Extremely satisfied 23%
Satisfied 47%
Dissatisfied 20%
Neutral 10%
Total 100%

Interpretation 4: 100% of the

respondents, 47% of the respondents
approached were satisfied
with the safety and comfort feature of the
Escort. Followed by 27% was extremely
17% are neutral and rest of the 7% was
dissatisfied with safety and comfort
feature of Escort.
Observation: As majority of the
respondents are satisfied with the safety
and comfort feature of
Escort tractor, the company should
maintain the same standard and it is
suggested to come up with suitable
measure to reduce the negative opinion
among the consumer who are of the
opinion that the fuel consumption is a
dissatisfying factor.

Table No.5 Customer opinions towards


Factor Percentage%
Extremely satisfied 20%
Satisfied 40%
Neutral 27%
Dissatisfied 13%
Total 100%

INTERPRETATION 5: 100% of the

respondents, 40% of the respondents
approached were satisfied with the design
of Escort tractor. 20% were more
satisfied, 27% of them neutral and 13%
are dissatisfied with the design of Escort

Observation: As majority of the

respondents are satisfied with the design
of Escort tractor the company should
maintain the same standard and it is
suggested to come up with suitable
measure to reduce the negative opinion
among the consumer who are of the
opinion that the fuel consumption is a
dissatisfying factor.

Table No.6:Customer satisfaction toward

Maintenance of Escort tractor.

Factor Percentage%
Extremely satisfied 23%
Satisfied 51%
Neutral 21%
Dissatisfied 5%
Total 100

The sample drawn on the probability basis
shows that out of 100% of
Respondents, 51% of the respondents
approached were satisfied with the
maintenance of the
tractor. 23% were extremely satisfied,
21% of neutral and 5% are dissatisfied
with the

Observation: Though majority of the

customers are satisfied that the
maintenance cost of Escort tractor is less,
around 21% are are not satisfied which is
due to the newly launched tractor by
Mahindra with low maintenance cost.
Table No.7: Customer perception about
the performance of the Escort Tractor:

Very Good Average Bad Very

god bad
20% 47% 21% 12% _

Interpretation 7: The sample drawn on the

probability basis shows that out of 100%
respondents. 47% respondents gave good
response with the performance of the
tractor, 20% gave very good responses,
21% gave average response and 12%
gave bad response.

Observation : As 67% of the respondents

are happy with the performance of the
tractor, it satisfies that the customer
satisfaction levels are very high.

Based on the data gathered by

administrating schedules to customers the
following observations
are made.

 ESCORTS LIMITED has excellent

percentage of customer satisfaction
according to the data shown in the
table 1 of the data analysis and
interpretation topic.

 Most of the people are satisfied with its

low maintenance cost and after sales
service provided by Escorts.
 Based on the fuel consumption, most
of the people are satisfied with it.

 Based on the safety, comfort, design,

maintenance most of the people are
satisfied with it.

 Overall people are satisfied with the

performance of the Escort tractor.

 Escorts Limited has to

implement good customer
relationship management
strategy that enhances
customer satisfaction level.

 The company can go for

the undertake R&D to
improve the existing feature
which field help increase the
customer satisfaction.
 The company should
promote about the entire
feature offered by it.

 As majority of the
customer give opinion that
they are satisfied is the
factor, services and design of
the product of the company
should take not only maintain
the existing standard but also
enhance them.








Annexure 1
Customer Profile
a) Name b)
c) Age d)
e) Address

1) Are you satisfied with Escort

a) Yes
b) No

2) If ‘yes’ Which factor you

consider is satisfies you most?
a) feature
b) low maintenance
c) looks
d) after sales service

3) Are you satisfied with the

fuel consumption of tractor?
a) Extremely satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
4) Are you satisfied with the
safety and comfort of Escort
a) Extremely satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
5) Are you satisfied with the
a) Extremely satisfied
b) Satisfied
c) Neutral
d) Dissatisfied

6) Are you satisfied with

maintenance cost?
a) Extremely satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
7) Are you satisfied with the
power steering?
a) Extremely satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
8) Your general perception
about Escort tractor?
a) Very good
b) Good
c) Average
d) Bad
9) Are you satisfied with the
after sales service of Escorts?
a) Extremely satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
10) Do you want to give any
suggestion about any change
in the tractor?

Annexure 2


Implements and Trailors

Spring Tyne Tiller 12 Disc

offset Disc
Rotory Tillers
Rectangular Bailer


Joint ventures strategic alliances.
» Why Escorts pulled out of the joint
venture and how this move is
going to affect Yamaha Motors.

» Escorts’ new business initiatives

and how the company is placed to
succeed in new economy

The Escorts - Yamaha

Motors Break-Up

On April 24, 2000, at the board meeting of
Escorts Limited (Escorts), members
seemed to know precisely what to expect.
Just five days earlier, Rajan Nanda
(Nanda), Chairman of Escorts, the flagship
of the Rs 35 billion Escorts group, had
been to Japan to hold talks with the
Yamaha Motor Company (Yamaha Motors)
officials- Escorts' equal partner in the
Indian motorcycle venture, Escorts
Yamaha Motor Ltd (EYML). Before leaving,
he had left instructions that a board
meeting should be convened on April 24.
An important announcement was to be
made. At the meeting, Nanda informed
the directors that, subject to the board's
approval, Yamaha Motors could be given a
majority stake in the joint venture
company. The Japanese two-wheeler
major had offered to buy an additional
24% stake in EYML from Escorts at Rs 200
per share. The deal would add Rs 2.3
billion to Escorts' coffers.
The announcement seemed to have been
well accepted by the board, as there was
not even a murmur of protest. For the
Escorts board, such announcements were
not new. In a little over a year, Escorts had
offloaded substantial chunks of its equity
in three joint ventures to its overseas
partners. It all started in 1999 when
Escorts sold one-third of its shares in the
construction equipment company Escorts
JCB to JCB of the United Kingdom for Rs
490 billion. This brought its stake down
from 60% to 40%. Next came the turn of
Hughes Escorts Communication, a 51:49
joint venture between Hughes
Communications of the United States and
Escorts. In December 1999, Escorts
offloaded 23% of its stake to Hughes for
Rs 750 million. This brought its
shareholding in the company to 26%. This
was the second such exercise undertaken
by Nanda since 1995 when he took over
the reins of the company from his father,
Har Prashad Nanda as chairman of the
group. At that time, he had identified six
areas of growth for Escorts-agri-business,
construction equipment, two-wheelers,
auto-components, telecom and finance.
And each business was spun off into a
separate company, leaving Escorts, the
flagship, to focus on agri-business. Nanda
then identified four thrust areas for
Escorts-agri-business, telecom, software
and healthcare. The idea behind giving
Yamaha Motors the majority stake in the
joint venture was to focus more on the
four thrust areas.

Two Wheeler Industry in India

The 3.8 million two-wheeler market in
India included scooters,
motorcycles and mopeds. In the
late 1990s, the domestic two-
wheeler industry had undergone
many structural changes.
Motorcycles consistently gained
market share from the scooter and
the moped. The trend was
expected to continue in 2001-02.
150cc vehicles from Bajaj Auto and
LML dominated the scooter
market. Northern India was the
major market accounting for nearly
46% of the total scooter sales. The
Indian motorcycle market could be
broadly categorized into Indian
motorcycles and Indo-Japanese
motorcycles. The Hero group, Bajaj
and Escorts dominated the Indo-
Japanese motorcycle segment in
collaboration with Japanese vehicle
manufacturers Honda, Kawasaki
and Yamaha respectively.
In 2000, the market for motorcycles
was segmented into three
categories based on price: the
premium segment (45,000 and
above); the mid segment (Rs
40,001-45,000); and the entry
segment. (upto Rs 40,000) In the
segment, the competition was
between TVS Suzuki, Hero Honda
and Escorts Yahama Motors. In the
mid segment, Hero Honda was the
clear leader with 35% share. In the
entry segment, Bajaj Auto was the
choice of many for segment wise
sales & market share). Yamaha
Motors was a major competitor in
the premium segment, but after
the break up with Escorts in May
2001, there was no sign of
rejuvenation. The Indian market
favoured four-stroke vehicles. This
posed a problem for Yamaha
Motors, whose strength was two
stroke vehicles. TVS-Suzuki was
not very aggressive as far as new
launches were concerned. Between
1992, when the Samurai was
launched, and 2000 when the Fiero
was launched, the company had
nothing really new to offer..

Escorts, Yamaha Tie the Knot

In 1985, Yamaha Motors entered into a
technical support agreement with Escorts,
and started local production of Yamaha
motorcycles. In 1995, Yamaha and Escorts
signed another contract, establishing
EYML to manufacture and market
motorcycles in India. Each company
invested 50% of the capital for the original
venture . EYML produced a wide range of
motorcycles for the urban and rural
markets at its Faridabad (Haryana) and
Surajpur (Uttar Pradesh) plants. The joint
venture manufactured Rajdoot
motorcycles at Faridabad and the RX and
four-stroke YBX series at Surajpur...

In 1996, Escorts transferred its
motorcycle manufacturing facility
at Faridabad to the joint venture.
Anil Nanda, chairman, EYML, said
the Surajpur and Faridabad
facilities would be modernized and
upgraded with a Rs 3.75 billion
budget. EYML would turn out
upgraded versions of the current
high performance bike, RX 100,
and RXG 135 to meet stringent
emission norms. In 1997, a further
upgraded RXZ 135, a sleeker
version would be launched and the
4 stroke YBX 125 would be
launched in February 1998 to meet
the growing demand for fuel-
efficient bikes. YBX 125 would
deliver the best of both worlds-
performance along with fuel
efficiency. EYML also planned to
launch 2-3 product variants every
In April 2000, Escorts announced that it
was likely to sell around 20% stake in
EYML to Yamaha Motors. Escorts would
thus become a minority shareholder in
EYML. However, an official said that
Escorts' holding in the joint venture would
not be less than 26% and it would not exit
from the joint venture. Said Nanda, "I have
no intentions of selling off the entire stake
to Yamaha. Escorts will retain the 26 per
cent stake we now hold in the venture." In
late April 2000, the board of Escorts
approved the proposal to divest 24%
equity. With the change in the equity
pattern, Yamaha Motors would control the
management of the joint venture.
Commented Nanda, "We have always
believed that business relationships are
driven by the value added by each

In May 2001, Yamaha Motors struck a deal
with Escorts for acquiring the latter's 26%
shareholding in YMEL for Rs 700 million.
The deal marked Escort's exit from the
joint venture. Yamaha Motors would now
hold 100% stake in the company.
Commenting on Escorts' exit from the joint
venture, an official said, "We would like to
get out of businesses where we are not in
the driver's seat and in the case of
Yamaha technology it was not a part of
our expertise." He said Escorts would now
concentrate on agri-business, telecom and

The Road Ahead

Escorts' exit from the joint venture
seemed to be a well-planned move. The
group had already moved out of
businesses where it believed it did not
have a sustainable advantage. On August
22, 2000 at the group's Annual General
Meeting, Nanda announced that Escorts
would now focus on the new economy. He
said, "To continuously create value, we
have strategically moved our investments
from low-growth areas to high growth
avenues, or in other words, shifted our
focus to businesses, which have a
potential for higher growth and

Amity International Business School



Enrollment No A1802009257
Programme MBA – IB
Company's Name and ESCORTS LIMITED
Industry Guide

Contact Number
Ph.(O) : (R) :
Mobile : 09958800323
Fax :
E-mail : ashoutosh.singh@escorts.co.in
Project Information
1) Project Duration : (68Days)
a) Date of Summer Internship commencement (03/05/2010)
a) Date of Summer Internship Completion (10/07/2010)
2) Topic



3) Project Objective

The objective of the research is to find out the customer satisfaction of the clients towards
the escorts tractotrs in haryana and to know the after sales service of escorts tractors and
measure their satisfaction level.

4) Methodology to be adopted

Research Design - The non probability respondents have been researched by selecting the
respondents who are trading through online. Research is primarily both Exploratory &
Descriptive in nature. The sources of information are both primary and secondary data. 1)
Exploratory research objective is to gain insights and ideas. 2) Descriptive research
objective is typically concerned with determining the frequency with which something

5) Brief Summery of project(to be duly certified by the industry guide)

The conclusion of the research is that The survey involved gathering wide information
about the company, its products, customer
satisfaction and impact of various competitive firms on the company.
From the information collected, various aspects were identified where the company needs
focus more to improve the efficiency of marketing team of Escorts Limited.
The research was conducted through collection of primary and secondary data. Secondary
data was collected through visiting various web sites, automobile magazines and other
reliable sources. Primary data was collected through a well-framed questionnaire, of
which later a detailed analysis was done using various statistical I.T. tools like MS Word
and MS Excel. On the basis, of secondary data analysis and the extensive analysis of
primary data, interpretations were drawn for the questions and conclusion is drawn.
Certain suggestions are also drawn from the analysis to help Escorts Limited to increase
their market share by giving customers higher level of satisfaction.

Signature Signature Signature

(Student) (Industry Guide) (Faculty Guide)