Internship Ghazi Tractor

Al-Ghazi Tractors Limited

Research Project

AL-GHAZI TRACTOR LIMITED

SUBMITTED TO

Mr. Riaz Hussain

Submitted By

M. Nauman Khan (05)

Tahir Shafiq (31)

M. Baqir (45)

M. Imran Sajid (33)

Ali Ahmad (22)

Shahid Rasoul (19)

Institute of management sciences B.Z.UNIVERSITY

MULTAN SUB CAMPUS D.G.Khan

1


We want to dedicate our report to all the people who helped and pray for us. People

who bring lots of colors and happiness in our lives, including first of all our parents specially,

their prayers are always with us.

Then our honorable teachers, they guide us in every difficult time especially in studies;

their guidance will be with us in every field of our lives. We were unable to prepare this report

without their guidance.

Then our friends their caring, thoughts and smiles will always be with us through out

our lives and we will miss their company in future.

So, we are going to dedicate this report all the above people who are colors of our lives. We

think without them our lives will be colorless.

2


Practical work is the essence of executives. By keeping this in view our course

instructor gave us the repot of “Al-Ghazi Tractor Limited.” We are very much thankful to our

teacher Mr.Riaz Hussain for providing us a chance to Know that whether theoretical concepts

are applicable in practical life or not. It was a great experience for us.

We are also very thankful to the persons who helped us in making this report.

3


Report of Financial Mamagment about Al-Ghazi Tractor Limited is a big tool to teach the

students about the company that how it is changing with the passage of time.

We were assigned “Al-Ghazi Tractor Limited?” that was a wonderful experience. We tried

our best to produce the most comprehensive report on the given topic.

This effort can be evaluated by the readers and constructive critics will help us in true

prospective.

4


Serial # name Page #

1 Executive Summary 6

2 Vision & Mission 7

3 Introduction 8

4 Hirarcy Chart 10

5 Departments 11

6 Marketing Deptt. 12

7 Personnel & Adnim Deptt. 13

8 Personnel Deptt. 14

9 Store Deptt. 18

10 Quality Assurance Deptt. 20

11 Production Deptt 21

12 Finance Deptt. 25

13 Competitors 29

14 Ratio Analysis 30

15 SWOT Analysis 35

16 Findings 37

17 Successes 38

18 Suggestions & Conclusions 39

19 References 40

5


EXECUTIVE SUMMARY:

Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.The area of

factory, at D.G.Khan, is 100 acres approximately. It uses the product design of “FIAT” of

Italy. The main purpose of the company is assembling and distributing of Fiat Tractors.

They assemble two models of tractors i.e. 480-S and 640. The depletion rate of 480 is 85%

and 640 are 76%.

Forecasting entirely depends upon the marketing department. Previously 98% of sales was

made by contract with ADBP but now it is carried out on net cash payment basis. Because

delivery through ADBP has been stopped. Highway method is used for transportation

purpose.

To reduce inventory level they adopt safety stock method. They have different lead-time for

different suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing

inventory. Al-Ghazi Tractors Limited has a separate quality control department. The

laboratory is well equipped to under take chemical and mechanical testing of metals. Al-

Ghazi Tractors Limited has received the ISO 9002 Certificate.

6


To make AGTL a symbol of success

With AGTL’s name being synonymous with stability, profitability, Brand strength and

customer loyalty, AGTL’s mission is to retain market leadership as the lowest cot producer

of the highest quality products – the most enduring competitive edge being the quality of our

tractors.

7


Introduction

Al-Ghazi Tractors Limited was incorporated in 1983, as a culmination of the then

government’s desire to bring in the private sector to join hands with the public sector – as

public-private enterprise - under a seven year management contract to the private

shareholders. At the end of seven years, the government once again took over the

management control of AGTL in 1990

In 1991 the project was offered for privatization, and acquired by Al-Futtaim Group

of Dubai who took over the management control of AGTL in December 1991.Ever since

AGTL is a case study of rollicking corporate success. 50.02% shares of the company are held

by Al-Futtaim Industries Co. LLC and 43.17% shares are held by CNH Global NV, with

whom Al-Ghazi Tractors Limited has signed an Industrial Collaboration Agreement for

manufacture of New Holland brand tractors. The Agreement is valid till April 2016.

With Corporate Head Office in Karachi, the AGTL plant is located in Dera Ghazi

Khan – 100 kms from Multan and some 800 kms from Karachi. Built to specifications and

standards of Fiat / New Holland – the world’s No. 1 tractor manufacturer – the plant is a

hallmark of engineering dynamics.

With expansions carried out in 2005, the plant is now capable of producing 30,000+

tractors per year in a single shift – the most enduring competitive edge being the quality of

our tractors, which are robust and sturdy and carry a local content as high as 83%.

The AGTL plant and the staff town in what is essentially a less-developed-area of the

country, has given fillip to the whole area by way of ancillary and allied activities. We take

justifiable pride in the contribution that the company has made in the social cause of uplifting

and transforming a whole society in the remoteness of Dera Ghazi Khan.

AGTL was the first automobile company in Pakistan to earn the ISO-9002

Certificate. ISO-9001: 2000 Registration is now valid until January 2007.

8


AGTL had commissioned Baan, a global provider of enterprise business solutions

worldwide to implement ERP and thus bring the entire business cycle viz. sales and

marketing, planning and purchases, stores and inventory, manufacturing, quality,

maintenance, and finance executed as enterprise-wide integrated business system. The

project went live on January 1, 2002. The company is now acquiring and moving in 2006 to

the new version – Baan VI.

With no short cuts to distinction, AGTL operates with a disciplined focus on all

management activities – the most important asset being its human capital: the customers, the

employees and the investors – AGTL believes that this human capital does not depreciate

with time. The management works to ensure that all supply chain associates, dealers,

shareholders, employees share in the Company’s growth and prosperity.

Austerity and primacy of efficiency being settled wisdom at Al-Ghazi, AGTL’s core

strategy has been to be the lowest cost producer of the highest quality products. AGTL is the

only automobile company in Pakistan which has not raised its selling prices ever since these

were reduced and agreed with the Government in August, 1998.

9


Hirarchy Chart

CEO

PARVEZ ALI

GENERAL MANAGER

MARKETING

GENERAL MANAGER

ADMIN

GENERAL MANAGER

PERSONNEL

GENERAL MANAGERFinance

SENIOR REGIONAL MANAGER

MULTAN LAHORE ISLAMABAD SUKHUR

10


1. Marketing Department

2. Personnel and Admin department

3. Store Department

4. Quality Assurance

5. Production Department

6. Finance Department

11


Marketing department include the following tasks

Maintenance of the staff

Staff training

Workshop arrangement

Showroom arrangement

Sale promotion

Dealer development (motivating them)

Research and development

Forecasting the new trends in the market

Aware of all the competitors’ activities

DISTRIBUTION FUNCTION

The distribution function is the part of the marketing department and its activities are

as follows.

Booking of tractors

Delivery of tractors

Handling of payments

Preparation of reports for MIS

Close co-ordination with production and material management department

12


The P&A department deal with employees. All the activities related to

employees of factory are handled by this department. P&A department

maintains the workers day-to-day activities, their monthly and yearly records.

13


Functions:

The function of Personnel department of the factory are;

Maintenance

Have all the records of Employees

Act as an agent on behalf of the company to handle all the cases of coat.

Transport

Security

Horticulture

Cleaning

Colony affairs

AGTL School

Official visit adjustment

Have direct link with the Finance department

All the payment verifications are done here

Purchases

Maintenance of company’s policies

The Personnel department handles all the matters related to employees. Such as:

Attendance records

Leave Fair System

Wage System, etc.

Medical Claim

14


Wage System

1 Daily wage basis

2 Contract basis

3 Permanent basis

Daily wage basis

Daily wage basis employees are given salaries on daily basis. The personnel

department maintained their record and then passes it to the Finance department where the

employees are given wages. The daily rate per hour per employee is Rs.155. The overtime

wage is also included by calculating the overtime hrs an pay the employee at a specific

overtime rate per hour, which is different for different employees.

Contract basis

Contract basis employees are given wages on monthly basis. These employees are given

a specific card for their attendance. And at the end of month in the basis of their

attendance records, they are paid for their wages.

Permanent basis

Permanent basis employees are also given wages on monthly basis.

Leave System:

The personnel department also handles the leave system. Basically three types of leaves are

given:

Earned Leave

Sick Leave

Casual Leave

The leave system for Executive and for Non-Executive (staff workers) is different.

Executives are allowed to have only earned leave but the workers are given all the three types

of leaves.

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Earned Leave

The worker preplans this type of leave. 30 days of Earned Leave

are allowed for each worker in one year. The worker is paid for this type of leave.

Sick Leave

In the case of any sickness 10 days of sick leave are allowed for each worker in one

year. The worker is not paid for this type of leave.

Casual Leave

In the case of any emergency 10 days of causal leave are allowed for each worker in

one year.

The worker is not paid for this type of leave. The worker can also take even the half-day

of this type of leave.

Leave Adjustment

Each worker has assigned a leave card for its record’s maintenance. The leave

adjustment is done on yearly basis by the personnel department.

Each month the total number Earned Leave, sick leave, and Casual Leave are calculated and

record is maintained. And after each year if the allowed days of leave are remaining then

they are adjusted in the next year’s leave Schedule for the related employee.

If any dispute arises then the personnel department handles this matter. If an employee

misbehaves, then the personnel department issued a charge sheet to him and takes the

corresponding action against or in favors of him.

The Personnel department handles all these work.

The Admin department deals with the information related to:

Workers

Warning

Charge sheet

Transaction of post

16


Types of workers :

Daily basis

Contract basis

Permanent basis

The manpower strength required for daily production is 603.

The personnel department’s responsibility is to keep the man power strength standard one.

For this purpose, the daily records are maintained, and also the daily attendance is taken. If

for certain reason any worker is not available, the personnel department has to make

adjustment to keep the standard level of man power strength for the production of tractors.

The Admin department’s responsibilities are:

Transport Facility

All the facilities related to transport are under this department. The things related to

plant are transported from one place to another is called pool transport facility.

Purchased

For long-term purpose, parts are purchases that are required to assemble the tractors

so that to avoid the stop of production. Purchases are made on the credit basis to the

suppliers. But the problem occurs here sometime because even the small amount is also

made trough credits.

Security

All type of security related to,

Employees, and Goods are under the responsibility of admin department.

Medical Facility

17


Social Security: its relate to the workers. Workers are secured through insurance. On

5000 wage, 7% insurance security is given to each employee, i.e., 350 rupees is given to each

employee per month.

Officers Security: for executives this policy also exists. And they are also secured through

the insurance.

Retirement

There is employee old age system for employees and also for workers. 280 rupees is

retained for each worker as per month for its pension plan. In which, the employee’s

contribution is 40 rupees which is deducted from his salary and the remaining 240 rupees is

given by the organization.

Labor Benefits

There are two acts related to the labor’s benefit:

Participation Act of 1932: under this act, the workers ere given the facilities of medical

treatment, pension facility, etc.

1934 Act: under this act, including the facilities of 1932 act, the marriage grant facility,

scholarship, education, and many other facilities are avail by the workers from the

organizations which are registered through this Act.

18


The department plays a vital role in the factory and is regarded as the backbone of the

factory because it controls almost all the other departments of the factory. All the other

departments cannot play its role without the help of the Store department. The main purpose

of the store is to receive the components, maintain the record and issue the parts according to

the need. Store department is divided into the following sub parts.

Yard

BAAN

Local Un Boxing

Store Casing Knock Down (C.K.D) Department

Binning

Salvage Cell

Expense store

This part of the store is responsible for receiving, binning the heavy components, and

to make the tyre assembly.

The store yard is categorized into three areas:

Components Receiving area: In this area the components are unloaded from the trucks.

Yard Item Location: The heavy components such as gear box, axle case casting parts are

stored here.

Tyres Assembly: The front and the rear tyre are also stored here.

19


The term “quality” refers to the excellent product or service that fulfills or exceeds

our expectations. The expectations are based on the intended used and the selling price. Thus,

a quality is somewhat is an intangible based on perception.

Standard quality is the totality of features and characterizes tics of a product or service that

bear on its ability to satisfy implied or stated needs. Stated needs are determined by the

contract, whereas the implied needs are the function of the market and must be identified and

defined. The needs involve:

Quality Control

It is the use of techniques and activities to achieve, sustain, and improve the

quality of a product or service.

Quality Assurance

All the planned and systematic actions necessary to provide adequate

confidence that a product or service will satisfy given requirements for quality is called

Quality Assurance.

Safety

Availability

Maintainability

Reliability

Usability

Economics (Price)

Environment

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PRODUCTION PROCESS

The process design in the assembly line of tractors consists of the following operations an

activities.

Gear Box

Transmission

Coupling of transmission with Gear-Box

Test Bench

Coupling engine with transmission

First line

Paint shop

Second line

Final inspection

GEAR-BOX

In the plant, during assembling certain operations are performed by technical individuals, are

discussed as under.

i) CLEANING OF CASE FROM INSIDE

ii) COUNTER SHAFT NUT TIGHTING AND STAKING.

iii) TRANSMISSION SHAFT COVERS TIGHTENING.

iv) SPILTER TIGHTENING AND LOCK PLATE BENING.

v) CHECK POSITION OF MAIN SHAFT INNER AND SEAL AFTER INSERTION OF

TRANSMISSION

The following are the operations that are performed during transmission.

i) CLEANING FROM INSIDE.

ii) BEVEL PINION NUT TIGHTENING.

iii) BEVEL PINION ROTATING TORQUE.

iv) DRIVE HEAD TIGHTENING.

v) BEVEL DRIVE ROTATING.

vi) BEVEL DRIVE BACKLASH.

21


COUPLING OF TRANSMISSION WITH GEAR-BOX

Here gearbox and all other parts, which are prepared in transmission, are coupled and the

following operations are performed.

i) GEARBOX WITH TRANSMISSION TIGHTENING.

ii) FINAL DRIVES TIGHTENING.

iii) BREAK PEDAL ADJUSTMENT .

TEST BENCH

Here the engine is checked to check that all its parts are at their its correct places or not,

further actions are taken later on.

1. CLUTCH TO FLY WHEEL TIGHTENING

2. ENGINE WITH TRANSMISSION

3. MASTER CLUTCH PEDAL ADJUSTMENT

4. HYDRALIC LIFT TRANSMISSION TIGHTENING

5. LEVER TO STEERING BOX TIGHTENING

6. FRONT AXLE SUPPORT TIGHTENING

PAINT SHOP

i) WASHING

Here to remove dust the body of engine , the body of the engine is washed with hot mixture

of hot water and chemicals.

ii) PRIMER

Here the body is make prepared for paint by allowing to remained in the hot air.

iii) PAINT

Here the steel body is painted in the “Paint Shop”.

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SECOND LINE

1. ELECTRICAL SYSTEM

2. ALIGNMENT OF STEEL METAL

3. FRONT WHEEL TIGHTENING

4. REAR WHEAL TIGHTENING

5. WHEEL ALIGNMENT

Here the front and back wheels are alighted and their bolts are tightened.

vii) OIL CHECKING

Here the oil levels are checked and fill oil to it and after it the final inspection is made.

FINAL INSPECTION

The following are the operations, which are performed during final inspection of finished

tractors.

i) CHECKING OF OIL LEVEL: Air cleaner oil checking

Water level checking

Weight test of Hydraulic pressure

Engine oil level checking

Gear Box oil level checking

ii) CHECKING OF OPERATING PARTS:

Clutch play tightening and sound test

High, low gear sound checking

Final drive tube leak

Differential case hole and sound checking

Gear box top cover leak checking

Differential leak checking

Engine sound checking

Lift pump support checking

Automisophry support checking

Paint cover checking

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ELECTRICAL LIGHTING SYSTEM CHECKING :

Head light high checking

Beam indicators checking

Oil pressure checking

Alternate light checking

Alternate junctions checking

Fan belt (extension/loose) checking

Fuel gauge checking

Temperature gauge checking

Main wire clip checking

Parking lights checking

Parking indicators checking

Neutral switch checking

Head light low checking

Back lights checking

Horn checking

Yellow lamp checking

24


The Finance Department handles all the matters related to finance. It also maintains

all the records related to it and also prepare a budget for each year. All the payment

transactions, recording transactions, and the maintenance of records are under Finance

department.

The Finance Department of Al Ghazi Tractors Ltd. handles all the matters all the

payment transactions, recording transactions, and the maintenance of records are under this

department. The Finance Department has the direct link with the Admin Department. All

type of bills and slips came in this department from the Admin department. And if there is

any mistake then the Finance Department inform the Admin Department about this to make it

correct. The Finance department has the following sections categorized as:

Accountant

Collection Account

Cash Account

Payroll and Tax System

For the maintenance of records or for the payment and receipt purpose, different vouchers are

used.

For Payment purpose:

Cash Payment Voucher

Account Payable Voucher

Bank Payment Voucher

Journal Voucher

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For Receipt purpose:

Cash Receipt Voucher

Bank Receipt Voucher

Cash Payment Voucher

The CPV is usually made for the internal users. The Finance Department through CPV makes the

payment up to of Rs.5000. If the purchases are above that specific amount, then Finance Department

has to taken approval from the Head Office. The cash payment is also made by the Finance

Department. The CPV is made for different payments such as:

Officer Mess Expense

Cleaning Charges

Staff Welfare, and many more.

Travelling Expenses

Medical Allowances

On each CPV it is necessary to stamp a “Revenue Stamp”. This stamp is given by the government to

generate its revenue.

For Rs.2,000 or below it, Rs.1 stamp is stamped.



Account Payable Voucher

The APV is also made for the payment purpose, but the main difference between CPV and APV

is “tax deduction”. The payment for which the APV is made is usually for the parties. The tax is

deducted from their amount and after that the remaining amount is paid to them for their services. The

APV is made for the deduction of the tax. Different parties are charged different amount of

deductions.

The taxes that are collected from different parties through APV are must be submitted in the

bank within one week.

Bank Payment Voucher

26


After the checking and approval of APV, the BPV is prepared for the amount that is

payable to the parties. Then after this, it is also checked and verified and after that the cheque

is prepared for the payment. And when the payee takes its cheque, the cheque is given to

him/her and all the attached documents related to it are maintained in the DBU file.

The BPV is not only made for the payable amount after deduction, the services that are not

tax deductible are also paid through BPV. Such as:

Vehicle Services like petrol, CNG, Diesel etc. each vehicle has a sheet card assigned

to it. This type of services taken by the specific vehicle is recorded in the card and

after each month, the card is checked and the payment is made through the BPV.

Haj Expenses for the employees who are winner through the draw each year are

allowed to go to perform Haj and all the expenses are from the company, the payment

of these expenses is made through BPV.

Loan like motorcycle loan is given to the employees of about Rs. 20,000, and this

payment is also made through the BPV.

And also there are many other payments made through BPV, but due to shorten of time it is

not possible to mention all.

Journal Voucher

Usually the DJV is prepared for the adjustment purpose, if there were any mistake happened

during the maintenance of records than to correct it or to rectify it the DJV is prepared. The

account in which there is mistake occurs, that account is debited and the rectification account

is credited by the same amount.

Cash Receipt Voucher

27


CRV is prepared at the time of receiving cash. Usually the CRV is prepared for scrape sale.

The compay’s own workers or employees buy most of the things that become scraped. So the

CRV is prepared for it.

One copy of that receipt is keep in record and one copy is given to the employee so that he

can make a gate pass for taking the scrape product out of the organization

This process is as follows:

The employee/worker writes an application to the GM (Plant) and after approval from

the Admin Department, it comes in the Finance Department where the CRV is made for it.

And then the product can easily be taken by employee/worker after making a gate pass.

There is 15% tax is charged on the total amount for each scrape sale.

Mainly the company charge the sales tax on four types of things: these are:

Electricity

Shell Pakistan Limited

Oil, Lubricants

Scrape

After each month the specific sales taxes are maintained. The total amount of the sales

taxes for a month is recorded on the receipt and then the government refund that amount to

the Company because it is tax exempted.

28


• MILLAT TRACTORS LTD.

• FECTO BELARUS TRACTORS

• G.M.TRACTORS (PVT) LTD

• KHYBER TRACTORS

• MODERN CONTINENTAL

• CHINA GOLD -OX

• ALLIED TRACTORS

29


Horizental analysis

Income statement

a/c Name 2004 2003 Change

2004-2003

% change

(2004-2003)*100/2005

Sales 9022515 779322 +1283193 14.22%

C.G.S (7387468) (6136774) +1250694 16092%

GP 1635047 1602548 +32499 1.98%

Distribution cost (65152) (61403) +3749 5.75%

Admin expenses (80043) (79744) +299 .39%

Income 1489852 1461401 +28451 1.90%

Operating income 564660 303372 +261288 46.27%

Operating expense (141571) (121700) +19871 14.03%

Finance cost (2761) (7517) -4756 -172.2%

Profit before tax 1910180 1635556 +274624 14.37%

Tax (680862) (574683) +106179 15.59%

Profit after tax 1229318 1060873 +168445 13.70%

30


Vertical Analysis

a/c Name 2004 % 2003 %

Sales 9022515 100% 7739322 100%

C.G.S (7387468) 81.87% (6136744) (79.20)%

GP 1635047 18.12% 1602548 20.80%

Distribution cost (65152) (.70)% (61403) (.07)%

Admin expenses (80043) (.88)% (79744) (1.0)%

Operating Income 1489852 16.51% 1461401 18.88%

Income 564660 6.25% 303372 3.91%

Finance cost (2761) (0.031)% (7517) (1.57)%

Profit before tax 1910180 21.07% 1635556 21.13%

Tax (680862) (7.54)% (574683) (7.24)%

Profit after tax 1229318 13.62% 1060873 13.7%

Balance Sheet

Horizentol analysis

a/c name 2004 2003 change %

Current assets 2035794 1869380 171814 8.13%

Operating assets 204955 213276 (8321) (4.05)%

Capital work in

process

2594 8461 (5867) (226.17)%

Long term loans 867 2520 (1653) (190.5)%

Deffered tax 40224 32436 7788 19.36%

Current liabilities 1412869 911411 201458 35.49%

Long term

liabilities

45607 2210 43397 95.15%

Capital 827107 1208202 (381095) (46.07)%

31


Vertical analysis

Balance sheet

Assets side

a/c Name 2004 % 2003 %

Current assets 2035794 89.90% 1869380 87.84%

Operating assets 208698 9.13% 222887 10.50%

Long term loans 867 .03% 2520 .11%

Deffered tax 40224 1.75% 32436 1.52%

Total assets 2285583 100% 2121823 100%

Liability side

a/c Name 2004 % 2003 %

Current liabilities 1412869 61.81% 911411 42.95%

Long term

liabilities

45607 1.99% 2210 .104%

Capital 827107 36.18% 1208202 56.94%

Total lia. &

capital

2285583 100% 2121823 100%

Ratio analysis

32


For 2004

Current ratio= Current assets

Current liability

= 1863980 = 2.04

911411

Debt ratio = total liabilities

Total assets

= 913621 = 0.430

2121823

Return on assets = Earnings for common stockholders

Total assets

= 1229318 / 2285583 = 0.53

Total asset turn over = sales/CGS

Total assets

= 9022515 = 4.25

2121823

Gp margin = GP/Sales

= 1635047/9022515 = 0.1812

Operating profit margin = OP/ Sales

= 1912941/9022515 = 0.21

Net profit margin = NP/Sales = 1229318/9022515= 0.13

EPS = Earnings available for common stock / shares for common stock

=1229318 / 60000000 = 0.02

P/E Ratio = MPS / EPS =5 / 0.02 = 250

For 2003

33


Current ratio = Current assets

Current liability

= 2035794 / 1412869 = 1.44

Debt ratio = Total liabilities

Total assets

=1458476 / 2285583 = 0.63

Total asset turn over = sales/CGS

Total assets

=7739322 / 2285583 = 3.386

Gp margin = GP/Sales

= 1602548 / 7739322 = 0.20

Operating profit margin = Operating Profit / Sales

= 1643073 / 7739322 = 0.21

Net profit margin = NP/Sales = 1060873 / 7739322 = 0.13

Inventory turnover = CGS / Inventory 6136774 / 408283 = 15.0

Return on equity = net income / capital =1060873/ 1208202 = 0.87

Return on asset = sales / total assets = 7739322 / 2121823 = 3.64

EPS = Earnings available for common stock / shares for common stock

= 1060873 / 40000000 = 0.025

P/E Ratio = MPS / EPS = 5 / .025 = 200

34


35


AGTL has the distinction of bring the first automobile industry in Pakistan to earn the ISO-9002 recognition. This major advance of tuning up the production activities through ISO9000 has put in place a system of sound quality activities and cross functional intergrated process through out the company.

Their manufacturing plant is the symbol of engineering dynamics the AGTL plznt at D.G Khan.

Their 3% parts are make locally. Lower cost producers of high quality products. For customer satisfaction AGTL has dotted whole country with large dealer

network(100 dealers and 1000 customer care service center) customer care center and tractor workshop.

AGTL has won the following rewards which adds to their strengthens1. top companies performance awards.2. Corporate excellence awards3. best calender awards4. golden jubilee award

Their worker commitment to their organization is also their great strenth.

Quality products with strong threshing power.

As AGTL is currently market leaders, they are few weaknesses as compared to strengths.

Low advertising budget as compare to competitors.

They are looking forward to capture market with more diversification in the product.

Through introduction of new product and they think that product will become market success

in the future, as they are delivery all, that which is demanded by the customer.

36


New model introduce by competitor having turbo charge whose major advantage is

that it result in less consumption of fuel.

Sales tax if implemented by the government than it will increase the price and it will

not be benificial for organization as it will reduce the total sale.

Government has plan to import duty free tractors from Russia which are less costly

then FIAT quality products.

37


AL GHAZI TRACTOR LIMITED:

AL-ghazi tractor establish as government institution but it not perform in the way as it is

performing now .so it was privities as Pakistan first privatized firm. After privatization it start

the journey of success and today it is emerged as market leader in industry but that largely

was the out come of:

Dedication to work in the direction of profitability

No compromise on quality

Learning from competitors

Undurstanding the needs and wants of customers

Providing benefits and ficilities to employees to boast there moral

Widening the vision through marketing research

With culture of corporation and poitics free

Decision making from bottom to top

With updating the production facilities according to new needs and wants

38


Having the largest share in the industry

Best quality products on which customer trust

With employees so motivated that they are ready to perform wonders

Un match in Pakistan corporate world in giving of returns to share holders(about 293

millions in year 2000)

Paying the tax to Govt. which is equivilant to 35% of company profit

39


Role Of Corporation In Industry:

AGTL is the 21st century market leader. To maintain this they have to more caution

regarding there competitors and involvement of market research in there decision should be

at peak.

Departments:

Marketing department is there most influencing and playing its role in achieving the

core objective. Further advancement can be made in its role through increasing the

advertising budget.

Product Mix

There strategic business unit is fiat 480 as 70% of the sale of AGTL is based on this

product .it is the good sign that AGTL considering the addition of two new product with

lesser horsepower as compared to Fiat 480. As our country is largely composed of those

farmers, which are having land, less than 25 Akers.

In AGTL Quality Is The Thing Which Is Un Compromising And Which In Fact First

Step In All The Success Which AGTL Gain And Will Remain Gaining If They Remain Firm

On There Motto.

40


www.alghazitractorslimited.com

www.googlesearchengine.com

www.yahoosearch.com

www.paksearch.com

Riaz Hassan depti Manager Distribution

41

http://www.paksearch.com/

http://www.yahoosearch.com/

http://www.googlesearchengine.com/

http://www.alghazitractorslimited.com/

Internship Ghazi Tractor

Documents

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models of tractors

dera ghazi khan

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personnel deptt

agtl plant

management control of