Sustomer Satisfaction

CHAPTER-1

1

INTRODUCTION

The Project assigned to me was “A STUDY ON CUSTOMER

SATISFACTIOIN ON MAHINDRA TRACTORS IN SREEKRISHNA

AUTOMOBILE, AUTORISED DEALER IN MAHINDRA TRACTORS

MEDAK DIST.

CUSTOMER SATISFACTION

According to Philip Kotler, “satisfaction is a person’s feelings of

pressure or disappointment resulting from product’s perceived perfor-

mance (outcome) in relation to his or her expectations. Customer satisfac-

tion is the level of a person’s felt state resulting from comparing a prod-

uct’s perceived performance (outcome) in relation to the person’s expecta-

tions”.

This satisfaction level is a function of difference between perceived

performance and expectations. If the product’s performance, exceed

expectation the customer highly satisfied or delighted. If the performance

matches the expectations the customer is satisfied. If the products

performance fall shorts of expectations the customer is dissatisfied.

1 Many companies are aiming for high satisfaction because customers

who are just satisfied still find it easy to switch when a better offer

comes along. High satisfaction or delight creates an emotional affinity

with brand.

2 Variety of factors that affect customer satisfaction includes product

quality, product availability and after sales support such as warranties

and services. Customer satisfaction is seen as a proof of delivering a

2

quality product or service. It is believed that customer satisfaction

brings sales growth, and market share. A company can always

increase customer satisfaction by lowering its price or increasing its

services but this may result in lower profits. Thus the purpose of

marketing is to generate customer value profitability.

3 India is on the threshold of a new millennium. India chose for global

economy, exposing her to winds of change in the market place, which

has expanded vastly and become fiercely competitive. In the changed

environment, decision makers view the marketing concept as the key

to success. Marketing in practice has to manage products, pricing,

promotion and distribution.

4 A successful product can be developed by exploding these

opportunities. While delivering the value of the consumer we make

use of marketing support. This support is based on the knowledge of

consumers and distribution. Marketing support both at the

introduction of products and maturing is considered

5 Marketing, as suggested by the American Marketing Association is

"an organizational function and a set of processes for creating,

communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organization and its

stakeholders".

6 The two major factors of marketing are the recruitment of new

customers (acquisition) and the retention and expansion of

relationships with existing customers (base management). Marketing

methods are informed by many of the social, particularly psychology,

sociology, and economics. Anthropology is also a small, but growing,

influence. Market research underpins these activities. Through

advertising, it is also related to many of the creative arts.

3

7 For a marketing plan to be successful, the mix of the four "Ps"1 i.e.

product, price, place, promotion must reflect the wants and desires of

the consumers in the target market. Trying to convince a market

segment to buy something they don't want is extremely expensive and

seldom successful. Marketers depend on marketing research, both

formal and informal, to determine what consumers want and what

they are willing to pay for. Marketers hope that this process will give

them a sustainable competitive advantage. Marketing management is

the practical application of this process. The offer is also an important

addition to the 4P's theory.

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 com-

panies 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 satisfac-

tion .If customer is fully satisfied by the product it not only rub the organi-

zation 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 sur-

vey 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

TRACTOR on behalf of Mahindra and Mahindra Automobiles. The

impact of automobile industry on the rest of the economy has been so

evasive and momentous that is characterized as second industrial.

It played a vital role in helping the nation to produce higher value

1

4

good and services and in the enhancing their skills and impose tremendous

demand for automobile. The decrease in the interest rate and easy

available of Tractor loons from 2 to 3 years, lot of car 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 M&M

The different strategies followed by M&M consists of Customer

relationship management, strategy to providing better facility to the owner,

and strategy to provide better after sales service to customer.

Customer Relationship Management

CRM as a tool was used to create positive word-of-mouth, to

monitor customer experiences and generate referrals. A series of CRM

activities were implemented with regular direct communication, events

and customer satisfaction surveys, Events, Festive offers, Rewards

Program, etc.

This study will help me to find and customer satisfaction level of

the customer for authorized M&M service station in medak dist, To know

the reason for decline of customers at service station, To know the

perception of customers regarding the charges or rates offered by the

service station and To know any suggestion from customers to improve the

service station.

The study is scheduled through primary data and other information

thereby preparing Questionnaire, which focus of various variables, and

attributes that are important to know the satisfaction level and the factors

affecting the purchase decision.

The survey caused at the zahirabad in medak Dist with the sample

size of 100.The collected data are tabulated and analyzed data and all

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suggestions are given according to the analyzed data graphs and charts are

used to illustrate the statistical data and findings.

The information collecting on the customer satisfaction totally

from the rural area because the tractors are produced for the formers 90 %

of these products buying farmers.

METHOD TO MEASURE CUSTOMER SATISFACTION

Companies use the following methods to measure customer satisfaction.

1) Complaints and suggestion system:

Companies obtaining complaints through their customer service

centers, and further suggestions were given by customers to satisfy their

desires.

2) Customer satisfaction surveys

Responsive companies obtain a direct measure of customer

satisfaction by periodic surveys. They send questionnaires to random

sample of their customers to find out how they feel about various aspects

of the company’s performance and also solicit views on their competitor’s

performance. It is useful to measure the customer’s willingness to

recommend the company and brand to other persons.

3) Lost Customer Analysis.

Companies should contact customers who have stopped buying or who

have switched to another supplier to learn why this happened.

4) Consumer Behavior Vs Consumption Behavior

Consumer behavior refers to the manner in which an individual

reaches decision related to the selection, purchases and use of goods and

services. Walters and Paul says that, consumer behavior is the process

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whereby the individuals decide what, when, how and from whom to

purchase goods & services.

Consumer behavior relates to an individual person (Micro behavior) where

as consumption behavior relates to and to the mass or aggregate of

individuals (Macro behavior) consumers behavior as a study focuses on

the decision process of the individual consumer or consuming unit such as

the family.

In contrast the consumption behavior as a study is to do with the

explanation of the behavior of the aggregate of consumers or the

consuming unit. Consumer is a pivot, around which the entire system of

marketing revolves. The study of buyer behavior is one of the most

important keys to successful mark

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OBJECTIVES OF THE STUDY

The study has been under taken to analyze the customer satisfaction

towards all variant of Mahindra Tractors in Zahirabad (Andra Pradesh)

with a special reference to the M&M motors, the other objectives are:

To gather information about customer satisfaction toward Tractors

in the geographic region of Zahirabad (Andra Pradesh).

To know the customer perception about features, low maintenance

cost and looks of Tractors.

To know the customer satisfaction about the safety and comfort

provided by Tractors.

To provide suggestions, in improving the customer satisfaction and

the company sales and profitability.

To know the customer satisfaction towards the after sales service offers

by M&M.

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NEED AND SCOPE OF THE STUDY

In this competitive world retaining the customers has become im-

portant part and parcel of the business activity, since in this arena the peo-

ple who adapt to changes and new technologies will survive.

This study will help to understand customer need, preference and

what they require from the service station and this study will not only help

me as a student but it will also the sree Krishna automobiles to improve

its service standard

PURPOSE OF THE STUDY

The purpose the study on customer satisfaction regarding after

sales service and to know any suggestion to improve the sree Krishna au-

tomobile service center at zaheerabad.

The different strategies followed by M&M consists of Customer

relationship management, strategy to providing better facility to the

owner, and strategy to provide better after sales service to customer. To

know the the customers expecting from the M&M company. And how the

customer is getting total value of the tractors of the Mahindra Company.

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RESEARCH METHODOLOGY

The study was conducted by convent sampling and was

administered through questionnaire. This research was conducted for

Mahindra & Mahindra tractors, to know there opinion about the

process of customers satisfaction and customers perception about the

Mahindra tractors.

DATA COLLECTION TOOLS:

Primary data:

The data collected was/is primary data requires to meet the objectives

of the project was obtained mainly as primary data to know the

opinion of the respondents about the process of customer’s

satisfaction.

Secondary data:

Secondary data includes the collection of information from several

journals, magazines and through internet.

Sample design:

A sample design of some respondents was taken and segmented into

occupation, age and income.

Type of questionnaire:

The questionnaire consist of open ended, multiple choice dichotomous

and closed ended.

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LIMITATION OF THE STUDY

Only Zahirabad region people opinions taken in to Consideration

for this study.

The project is carried out for the period of 45 days only.

Measurement of customer satisfaction is complex subjects, which

uses non-objectives method, which is not reliable.

The sample unit was also 100 respondents.

Communication is the barrier to gather information.

Some of the customers refusing to give the information about the

product because they are not phasing any miner problems with the

Mahindra tractors.

To meet and know the satisfaction level of customers regarding

Mahindra tractors I was to follow the customer given time which

was not convenient to me.

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CHAPTER-II

12

INDUSTRY PROFILE

History and development of Automobiles also marks the dynamism in

technological growth men have achieved. From the days of horseless

carriages to the modern-age self-guided automobiles that are designed

meticulously using cutting-edge technology, we have certainly-traveled

too far.

Automobile Industry in India is still in its infancy but growing

rapidly. The opportunities in the automobile industry in India are attracting

big names with the big purse and they are investing vigorously in

infrastructure, design and development, and marketing. Automobile

industry in India is today poised for (he big leap and this segment helps

you to be ready for that.

INDIAN AUTOMOBILE INDUSTRY

The automobile industry is one of the core industries in India

economy, whose prospect is reflective of the economic resilience of the

economy. With the liberalization of the economy. India has become the

playground of major global automobile majors. This industry report of

SCOPE MARKETING & INFORMATIONS SOLUTIONS PVT LTD

provides extensive information on the Indian Automobile Industry.

The automobile industry in India is gradually evolving to replicate

those of developed countries. The report focuses on the trends that are

emerging in the industry across segments, namely, passenger cars/multi-

utility vehicles, commercial vehicles, two-wheelers and tractors. The

qualitative analysis of the various trends reveals that the industry offers

immense scope even for allied industries and those looking at investing in

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the auto industry’s a background, a brief perspective of the global

automobile industry across segments has been provided with comparisons

on Indian scenario wherever needed. A detailed competitive analysis of the

industry has been provided backed warn comprehensive details on

production, sales, exports and imports over the years, across segments.

Sales have increased with the entry of several foreign manufacturers and the

introduction of new vehicle models. The report also deals with aggressive

marketing strategies undertaken by different manufacturers in India. This

highlights key issues influencing the automotive industry in India such as

import and excise duties, emission norms etc and it also deals with various

government regulations.

BIRTH OF AUTOMOBILES

The history of the automobile actually began about 4,000 years ago

when the first wheel was used for transportation in India. Several Italians

recorded designs for wind-driven vehicles. The first was Guido da

Vigevano in 1335. It was a windmill-type drive to gears and thus to

wheels. Vaturio designed a similar vehicle that was also never built. Later

Leonardo da Vinci designed clockwork-driven tricycle with tiller steering

and a differential mechanism between the rear wheels.

In the early 15th century, the Portuguese arrived in China and the

interaction of the two cultures led to a variety of new technologies,

including the creation of a wheel that turned under its own power. By the

1600s, small steam-powered engine models were developed, but it was

another century before a full-sized engine-powered vehicle was created.

Although by the mid-15th century the idea of a self-propelled

vehicle had been put into practice with the development of experimental

vehicles powered by means of springs, clockworks, and the wind, Nicolas-

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Joseph Cugnot of France is considered to have built the first true

automobile 1769. Designed by Cugnot and constructed by M. Brezin, it is

also the first vehicle to move under its own power for which there is a

record. Cugnot's three-wheeled steam-powered vehicle carried four

persons and was meant to move artillery pieces. It had a top speed of a

little more than 3.2 km/h (2 mph) and had to stop every 20 minutes to

build up a fresh head of steam.

Evans was the first American who obtained a patent for "a self-

propelled carriage." He, in fact, attempted to create a two-in-one

combination of a steam wagon and a flat-bottomed boat, which didn't

receive any attention in those days. During the 1830's, the steam vehicle

had made great advances. But stiff competition from railway companies

and crude legislations in Britain forced the poor steam vehicle gradually

out of use on roads. The early steam-powered vehicles were so heavy that

they were only practical on a perfectly flat surface as strong as iron. A

road thus made out of iron rails became the norm for the next hundred and

twenty-five years. The vehicles got bigger and heavier and more powerful

and as such they were eventually capable of pulling a train of many cars

filled with freight and passengers.

Carl Benz and Gotttlieb Daimler, both Germans, share the credit of

changing the transport habits of the world, for their efforts laid the

foundation of the great motor industry, as we know it today. First, Carl

Benz invented the petrol engine in 1885 and a year later Daimler made a

car driven by motor of his own design and the rest is history.

Daimler's engine proved to be a great success mainly because of its

less weight that could deliver 1000 rpm and needed only very small and

light vehicles to cany them.

France too had joined the motoring scenario by 1890 when two

Frenchmen Pan hard and Levassor began producing vehicles powered by

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Daimler engine, and Daimler himself, possessed by the automobile spirit,

went on adding new features to his engine. He built the first V-Twin

engine with a glowing platinum tube to explode the cylinder gas-the very

earliest form of sparking plug. The engines were positioned under the seat

in most of the Daimler as well as Benz cars. However, the French duo of

Pan hard and Leaser made a revolutionary contribution when they mounted

the engine in the front of the car under a 'bonnet'. For many years after the

introduction of automobiles, three kinds of power sources were in common

use: steam engines, gasoline or petrol engines, and electric motors. In

1900, over 2,300 automobiles were registered in New York, Boston,

Massachusetts, and Chicago. Of these, 1,170 were steam cars, 800 were

electric cars, and only 400 were gasoline cars.

In ten years from the invention of the petrol engine, the motorcar

had evolved itself into amazing designs and shapes. By 1898, there were 50

automobile-manufacturing companies in the United States, a number that

rose to 241 by 1908. In that year, Henry Ford revolutionized the manufacture

of automobiles with his assembly-line style of production and brought out

the Model T, a car that was inexpensive, versatile, and easy to maintain.

The introduction of the Model T transformed the automobile from a

plaything of the rich to an item that even people of modest income could

afford; by the late 1920s the car was commonplace in modem industrial

nations.

Herbert Austin and William Morris, two different carmakers,

introduced mass production methods of assembly in the UK, thus paving

the way for *a revolution in the automobile industry. Austin Seven was the

world's first practical four-seated "baby car' which brought the pleasures of

motoring to many thousands of people who could not buy a larger, more

expensive car.

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Even the 'bull-nose' Morris with front mounted engine became the

well-loved model and one of the most popular cars in the 1920s.

Automobile manufacturers in the 1930s and 1940s refined and

improved on the principles of Ford and other pioneers. Cars were generally

large, and many were still extremely expensive and luxurious; many of the

most collectible cars date from this time. The increased affluence of tire

United States after World War II led to the development of large, petrol-

consuming vehicles, while most companies in Europe made smaller, more

fuel-efficient cars. Since the mid-1970s, the rising cost of fuel has increased

the demand for these smaller cars, many of which have been produced in

Japan as well as in Europe and the United States.

Clearly, the consumer is king in a competitive environment. The

automobile sector is just one of several examples of how the consumer as

benefited from competition. For decades, the Indian consumer as paid

dearly for our policy maker’s confusion between socialism and capitalism.

The thoughtless policy frame as neither allowed neither efficient produc-

ers nor consumers to get optimum value for their effort or money. The re-

cent price was triggered by Telco’s India is an interesting case study. Let

us trace the evolution of the Indian passenger car industry. Since indepen-

dence till the early 1980’s there were only to major Indian players-Hindus-

tan Motors and Premier auto-in the industry. As new players were barred

by licensing, and imports by absurd import duties, these two car manufac-

turers constituted the oligopoly.

They had neither financial muscle nor any incentive to invest in

technology or quality. Little wonder the Indian consumer had the worst

quality of cars in the

World. Worse than cars available even in countries like Nepal, Sri-

lanka or Bangladesh besides the exorbitant duty structure ensured that

ownership was restricted to the super rich the oligopolists were happy with

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this situation. …Until the then prime minister’s omnipotent son had bril-

liant idea! To manufacture a people car at an affordable price. Policies,

government machinery, etc were twisted to; cement prices in unofficial

markets (make the dream come true. The oligopolists were furious (read

premier Autos annual reports of late 1980’s/early1990’s).but the people

are maruti 800 came into existence.

We Indians have been quite happy with its japanee’s technology.

But I realized how poorly it compared to international cars when a well-

built foreign guest of mine, unable to fit himself in the front seat, re-

marked, “Is this car or a toy?” All thought that people car was available at

such a low price because of the benevolent pricing our egalitarian govern-

ment, which holds the majority stake in the company. Then competition

arrived even for the people car (the competitor, indica, though is yet to hit

the roads) and behold, the people car is affordable by many more.-it is 10-

12 percent cheaper. Some other carmakers have slashed prices by al-

most25%. The private players plan to sell 10000cars at lower price than

the erstwhile “People’s Car” has brought down prices of models that to-

gether sell about 250000 units every year. In cars, the price reduction is

quantifiable and visible. In the past seven years, there have been hundreds

of products where unshackling competition has benefited the consumer.

TRACTORS IN INDIA

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As commercialization of agriculture grew in intensity in the mid to late

1800s the British Raj and the local legislatures and provinces began in-

vesting 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 aggres-

sively promoted rural mechanization via joint ventures and tie-ups be-

tween local industrialists and international tractor manufacturers. Despite

this aggressiveness the first three decades after independence local pro-

duction of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor pro-

duction was nearly 140,000 units per year and by the late 1990s with pro-

duction 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 organiza-

tions 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

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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 produc-

tion 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 con-

tinued 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 mil-

lion mark. India now emerged as one of the world leaders in wheeled trac-

tor production.

1997 to 1999

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Five new manufacturers have started production since 1997. In 1998 Bajaj

Tempo, already well established in the motor industry, began tractor pro-

duction 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, and 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 mar-

kets. Sales remained in a slump, and added to the market saturation prob-

lems 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 uptick in sales once

again due to stronger and national and to some extent international mar-

kets. But by 2006 sales once again were down to 216,000 and now in

2007-08 have slid further to just over 200,000.

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Tractors manufacture association

The Tractor Manufacturers' Association of India (TMA) is housed under

The Confederation of Indian Industry (CII), New Delhi. Though not all

manufacturers are members TMA is recognized as the main trade group

representing the agricultural tractor industry in India. Mallika Srinivasan,

Economic Times Businesswoman of the year 2006, and CEO of TAFE

Limited, is currently serving as president.

Current manufacturers of tractors in India

Balwan Tractors, Force Motors Ltd

Formerly known as Bajaj Tempo Ltd. until 2005, Force Motors Ltd., mak-

ers 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 Bal-

wan 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 man-

ufactures mini-tractors under the Captain brand.

Crossword Agro Industries

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Located in Rajkot, India, Crossword manufactures small tractors under

the Nissan, Atmak and Captain brand names.

Eicher

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 from1965-1974 became

the first fully manufactured (100% indigenization) tractor in India. In De-

cember, 1987 Eicher Tractors went public and in June, 2005 Eicher Mo-

tors Limited sold Eicher Tractors & Engines to a subsidiary of TAFE

called TAFE Motors and Tractors Limited

Eicher also produced tractors under the Euro Power and Eicher Val-

tra brands under license from Valtra, an AGCO brand.

Escorts  (Escort, Powertrac and Farmtrac)

Escorts Ltd began local manufacture of Ford tractors in 1971 in collabora-

tion with Ford, UK and total production climbed steadily to 33,000

in1975 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, Power-

trac 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 Pin-

jore, Mohali in a large factory that also manufactures machine-tools, and-

23

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 performance.

Indo Farm

Founded in Baddi, Himachal Pradesh, India in 1999, Indo Farms builds

tractors in the 30-50hp ranges. 

John Deere

In 2000, John Deere set up production in a joint venture with Larsen &

Toubro Ltd in Sanaswadi, in a rural area near Pune, Maharashtra. It was

known as L&T John Deere Private Ltd, and manufactured tractors under

the L&T - John Deere name for sale in India, and under theJohn

Deere name for worldwide sales. 

Deere & Company acquired nearly all the remaining shares in this joint

venture. The new enterprise is known as John Deere Equipment Private

Limited. The factory currently produces tractors in of 35, 40, 42, 47, 50,

55 and 70 HP capacities for domestic markets and for export to the USA,

Mexico, Turkey, North and South Africa, and South East Asia. Pune fac-

tory started to produce new 55 to 75 Hp 5003 series tractors for European

market in 2008.

Mahindra Gujarat Tractor Limited

The company was originally incorporated in the state of Gu-

jarat in 1963 with technical collaboration with Motokov-Praha of Czecho-

slovakia asGujarat Tractor Corporate Ltd. It was taken over by Mahindra

& Mahindra Limited in 1978 (holds 60% equity) and re-christened Mahin-

dra Gujarat Tractor Ltd as part of Mahindra Tractors. The company is en-

24

gaged in manufacturing of tractors in a range of 30-45hp which are mar-

keted under Shaktimaan brand. They were previously marketed under

the Mahindra Gujarat name, and before that the Hindustanname.

Mahindra & Mahindra

M&M's Farm Equipment Sector origins lie in a joint venture in 1963 be-

tween 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 orga-

nizational restructuring in 1994, this division was called the Farm Equip-

ment Sector. The Farm Equipment Sector has also ventured into manufac-

turing of Industrial Engines. M&M Industrial engines are used for various

applications like generator sets, industrial, construction, marine, compres-

sors, etc. These engines are manufactured at the Company's engine assem-

bly plants at Kandivli and Nagpur. M&M has two main tractor manufac-

turing plants located at Mumbai and Nagpur in Maharashtra. Apart from

these two main manufacturing units, the Farm Equipment Sector has satel-

lite 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 In-

dian tractor manufactures with joint ventures with western tractor compa-

nies, M&M, in 2004 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 annually.

25

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 firmActis Capi-

tal and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra

upped its stake to 64.6%.

MARS Farm Equipments Ltd.

Originally established in 1976, the MARS Group is engaged in manufac-

turing/marketing of dump trucks, loaders, foggers, and agricultural tractors

and attachments. Based in Lucknow, U.P., it began manufacturing two

mini-tractor models under the Marshal name in 2005,Captain DI 2600 of

25 HP and Trishul MT DI 625 10 HP. 

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 par-

ent company FIAT bought 70% of holdings of Case Corporation and cre-

ated Case New Holland Global (CNH one of the top three tractor/agricul-

tural/construction 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 manufac-

tured 24,000 tractors for the domestic and export markets.New Holland In-

dia 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 domes-

tic market. However due to slow down of economy by year 2001-2002

and slump in domestic demand, it became a challenge to utilize the in-

stalled capacity of the factory.Hence the company started looking its mar-

26

ket 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 busi-

ness 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 Holland.

Preet Tractors

Preet Agro began manufacturing tractors in 2002 in Punjab, India. They

currently manufacture in the 35-70hp range.

Punjab Tractors Ltd (Swaraj Tractors)

In 1965, Government of India research institute Central Mechanical Engi-

neering Research Institute, Durgapur, WB initiated design and develop-

ment 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 com-

bine harvesters. The manufacturing units are located at Mohali District,

Asron Village of Nawanshahar District and Nabha of Patiala District, Pun-

jab. 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 744, SWARAJ 735, SWARAJ 855, SWARAJ 978, SWARAJ

834, SWARAJ 939, SWARAJ 733, SWARAJ 724, SWARAJ 722

27

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 Capi-

tal and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra

upped its share in Punjab to 64.6%.

Same Deutz-Fahr Ltd.

SAME Tractors is an USD 4 billion company for past 7 Decades of Rich

Experience in Agriculture Segment. It was found by Francesco Cazzani

along with his brother way back 1927. Greaves Ltd joined in collaboration

with SAME for manufacturing of tractors in 1996 under the SAME-

Greaves brand. By 2000, Greaves sold its shares to SAME and formed

50:50 Joint Venture as SAME Greaves Tractors Ltd.

By 2002, Greaves Exited from SAME, SAME Greaves has become a

wholly owned subsidiary of SAME, Italy. The company has been renamed

as SAME DEUTZ Fahr Group India, Ranipet, Tamil Nadu, and India.

Sonalika (International Tractors Ltd.)

International Tractors Limited was incorporated on October 17, 1995 and

began manufacturing tractors designed by Central Mechanical Engineer-

ing Research Institute (CMERI). ITL currently is manufacturing Son-

alika 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 Re-

nault Group. Renault Agriculture was bought by CLAAS of Germany

28

in 2003. Incidentally CLAAS already has a strong presence in India mar-

ket producing its Crop Tiger range of Combine Harvesters in a plant

in Faridabad (near New Delhi) since 1992. CLASS has opened a new

plant in Punjab at Morinda in 2006.

Standard

Standard Combine began building tractors in 2000 in Barnala, Punjab, In-

dia. In Standard Tractors, tractors are being manufactured in the range of

35, 45, 50, 60, and 75 HP with respective model names: Standard 335,

Standard 345, Standard 450, Standard 460, and Standard 475. Engines for

all these tractor models, except the last one, are manufactured within the

plant as ‘Standard Engines’, in specific names – SE 335, SE 345, SE 450

and SE 460, respectively. All the above-mentioned models of Standard

Engines have shown compliance to the TREM-III emission norms, as have

been verified by the ARAI. However, two new variants of tractor of 35 hp

(Standard 335-I) and 45 hp (Standard 345-I), equipped with fa-

mous Perkins engines (assembled within the Standard Tractors plant), and

two completely new models of tractor of 30 hp (Standard 330) and 40 hp

(Standard 340) are on the verge to be launched. Besides these, three 3-

wheelers (two passenger-carriers and one cargo), one 4-wheeler (cargo), a

crane, an electric 3-wheeled mini-car, and two 2-wheelers (scooters) are

either in the process of development or on the verge of launch from the

Standard Tractor Division.

TAFE

Tractors and Farm Equipment Limited (TAFE) was established in 1961 to

manufacture and market Massey Ferguson tractors and related farm equip-

ment in India. AGCO, the owner of Massey Ferguson, now owns 24% of

TAFE. Tractors are built and sold in India under both

theTAFE and Massey Ferguson brands, and exported under both brands as

well. In 2005, TAFE bought the Eicher Motors tractor and engine division.

29

VST Tillers

VST Tillers was set up in 1965 in Bangalore, India. In collaboration

with Mitsubishi Agricultural Machinery of Japan, they manufacture 18HP

tractors under various brands, including Mitsubishi-Shakti', Shakti, Euro-

trac-VST and Euro-Trac. They have been exported to Asia, the Middle

East, Europe and the USA. In odisa thet intarduse in 1987 with tte halpe of

m/s sahoo agrochemi Cuttack 753009

30

COMPANY PROFILE

Mahindra Tractors, the farm equipment division of Mahindra &

Mahindra, builds and sources tractors that are sold worldwide across six

continents. Mahindra is also among the top three tractor manufacturers in

the world. Mahindra has a huge consumer base in India, China and

America and a growing base in Australasia. The company builds more

tractors in India than any other manufacturer, and has the capacity to build

150,000 tractors a year. In 1963, M&M formed a joint venture with

International Harvester to manufacture tractors carrying the Mahindra

nameplate for the Indian market. Armed with engineering, tooling and

manufacturing know-how gained from this relationship, M&M developed

its first tractor, the B-275.Mahindra compact tractors and utility tractors

are some of the toughest, most durable on the planet. Mahindra Tractors

with sales of nearly 85,000 units annually is one of the largest tractor

companies in the world, and is number one in sales in India - the largest

tractor market in the world. To expand into the growing tractor market in

China, Mahindra acquired majority stake in Jiangling. To raise awareness

about Mahindra in the US, Mahindra USA announced its new sponsorship

in the NASCAR Nationwide Series with R3 Motorsports, which is

participating with a #23 Mahindra Tractors Chevrolet. The car will be

driven by Robert Richardson, Jr. Mahindra USA, Inc. announced a 17-race

primary and 18-race associate sponsorship for the 2009 NASCAR

Nationwide Series. With this sponsorship, Mahindra was the first Indian

company to sponsor a car in NASCAR. In 2008, Mahindra was a sponsor

of the McDonald Motorsports team which ran the #81 car in the NASCAR

Nationwide Series.

MAHIDRA OPERATIONS

31

Mahindra Tractors operates in 10 coutries and has a fairly large

customer base in the United States, Australia, Chile, Serbia, Indian

Subcontinent, Iran, Syria and a major part of the African continent among

many more Mahindra operates in China, North America and Australasia

through its subsidiaries, Jiangling, Mahindra USA and Mahindra Australia.

These subsidiaries are also responsible for sales. It also operates in some

Indian states through its subsidiaries namely, Mahindra Gujarat and

Swaraj.

M&M's association with the automobile business dates back to

1945. The Company was incorporated in 1945 and was originally formed

to manufacture utility vehicles for the Indian market, initially by importing

and assembling Willys Jeep kits. The manufacture of utility vehicles

commenced in 1954 in collaboration with Willys Overland Corporation

and its successors, Kaiser Jeep Corporation and American Motor

Corporation (now part of the Daimler Chrysler group). The Company

commenced manufacturing Light Commercial Vehicles (LCV) in 1965.

The Company has recently entered the three-wheeler market.

Over the years, the Mahindra brand of vehicles has come to repre-

sent high quality, ruggedness, durability, reliability, easy maintenance and

operational economy. These are the qualities that have endeared the vehi-

cle to individuals as well as institutions like the Indian armed forces.

M&M is the leader in the MUV business in the country since inception.

M&M has comprehensive manufacturing facilities with high level

of vertical integration. M&M's automotive division has four

manufacturing plants, three in the state of Maharashtra and one in Andhra

Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture

multi-utility vehicles, and engines are produced at the Igatpuri plant. Light

commercial vehicles and three-wheelers are manufactured at the

Company's plant in Zaheerabad in Andhra Pradesh.

32

Our Mumbai and Nasik plants with the R&D facility at Nasik are

ISO/TS 16949 certified. The Mumbai plant has also been recommended

for the TPM excellence award. Our engine plant at Igatpuri has QS 9000

certification. Our LCV & three-wheeler plant at Zaheerabad have ISO

9001:1994 certification. Both of these plants are also working towards TS

16949 certification. Our plants in Mumbai and Igatpuri are also ISO 14001

certified.

M&M has a strong Research & Development set-up, with over 300

engineers in the automotive division. The Company's technical prowess is

proven by negligible import content in our vehicle and by the design and

development of a totally, from ground upward, new contemporary SUV -

Scorpio.

The division's marketing efforts are supported by a network of

more than 275 dealers across the country, which are managed by 20 sales

offices. Additionally, the division has a national network of authorized

service stations and stockiest to meet customer needs for servicing and

spare parts.

Having conquered a substantial portion of India's semi-urban and

rural markets, the division has in recent year’s secured significant success

in urban regions following the introduction of premium MUVs like

Bolero, and Scorpio. Scorpio is M&M's first indigenously developed

Sports Utility Vehicle - an off road vehicle with car like comforts. The

Scorpio was launched in June 2002 and has been universally acclaimed. It

was declared to be the "Car of the Year" by CNBC AutoCAD, BBC

Wheels and Business Standard Motoring.

M&M's automotive division also exports its products to several

countries in Africa, Asia and European & Latin American countries.

33

HISTORY OF THE COMPANY

1947: October, first batch of seventy-five Utility Vehicles (UVs) imported

in CKD condition from Willys overland Export Corporation.

1949: Lease of 11071 Sq. yds at Mazagaon from British India Steam

navigation. The first Willys Overland Jeep built in India at the Assembly

Plant, Mazagaon, and Bombay.

1954: Phased manufacture of Vehicles undertaken in collaboration with

Kaiser Jeep Corporation and American Motors Corporation.

1962: Indigenous content of Jeep goes up to 70%. 137 acres of land

purchased at Kandivli to centralize manufacturing operations.

1965: FC 150 Petrol Trucks introduced.

1967: Two wheel drive Utility Vehicles introduced. 101" wheelbase and

Metal Body UVs introduced. Indigenous content goes up by 97%.

1969: Export of vehicles started, export of total 1200 UVs together with

spare parts to Yugoslavia. Exports also made to Ceylon, Singapore,

Philippines and Indonesia.

1970: Contracts concluded to export of 3304 vehicles, mainly to

Yugoslavia and Indonesia.

1971: Separate R&D section set up.

1974: Maxi miller campaign launched to conserve fuel. CJ 4A introduced

with new transmission and axle ratio. Collaboration Agreement with Jeep

Corporation (subsidiary of AMC, Detroit).

1975: FC 260 Diesel light truck introduced. CJ 500 D Diesel introduced

with MD 2350 Diesel Engine.

34

1979: Government of India approves in principle, the technical

collaboration with Peugeot, France for the manufacture of XDP 4.90

Diesel Engine.

1981: Nasik Trucks Assembly Plant formally inaugurated. Peugeot Engine

Assembly Plant at Ghatkopar inaugurated. NC 665 DP Mini Truck rolls

out from Nasik Assembly Line.

1983: FJ 460 models introduced with 4-speed gearbox. Engine plant at

Igatpuri was formally inaugurated by Mr. Jean Boillot, President of

Automobiles Peugeot of France for the manufacture of 25000 Peugeot and

Petrol engines.

1985: New Mahindra Vehicle-MM 540 launched in Bombay. NC 640 DP

with 4-speed gearbox introduced. Mahindra MM 440 introduced.

1986: CJ 640 DP Vehicle introduced.

1987: MM 540 DP metal Body Wagonette introduced.

1988: M&M signed a Memorandum of Understanding with Hyderabad

Allwyn Nissan Limited to form Mahindra Nissan Allwyn Ltd., as its

associate company with LCV operations in Andhra Pradesh.

1989: CJ 340 DP model introduced. M&M and Peugeot announced their

tie up for the manufacture of Peugeot 504 pick up truck, BA 10 gearboxes

and latest XD 3 diesel engines. M&M acquired automotive pressing unit at

Kanhe, from Guest Keen Williams Ltd.

1991: Introduction of CJ 500 DI models with MDI 2500 A direct injection

diesel engines. M&M bags order to export 10000 CKD kits. Commander

range of models: 650 DI, 750 DP/HT were launched with tremendous

market response.

1993: Mahindra Armada launched. M&M was the only manufacturer to

withstand the demand recession, with increasing sales.

35

1995: Mahindra Nissan Allwyn Ltd. (MNAL) merged with M&M and

Zaheerabad LCV operations becoming part of Automotive Sector. FJ

series of LCVs were shifted from Nasik to Zaheerabad. Business Process

Re-engineering Project initiated in the Division. Igatpuri Engine Plant

received ISO 9002 certificate from TUV of Germany. Single Cab/Double

Cab project was initiated.

1996: New LCV model Cabking DI 3150 & Mahindra Classic vehicles

were launched. New Commander 5 Door Hard Top was introduced.

The company was the first automobile manufacturer to get all the engine

types approved for the new emission norms effective from 1st April 96.

IDAM (Integrated Design & Manufacturing) set up for designing entirely

new vehicle with the help of internationally renowned consultants.

1997: Commercial production of Ford Escort commenced at Nasik Plant.

License & Technical Assistance Agreement was signed with Mitsubishi

Motors Corporation for

Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and BA 10).

Soft/Hard top versions of CL/MM 550, 8 seater Armada, Commander 650

DI with longer wheel base and MM 540/550 XDB models were

introduced. Kandivli and Nasik plants received ISO 9002 certificate from

RW-TUV.

1998: Die shop Inauguration at Nashik Plant 2-8/8/97.

Voyager launched by the Chairman at Zaheerabad Plant on 12/11/97.

Complete localisation of Cabking model at Zaheerabad plant.

Change over from 3-Speed to 4-Speed Transmission.

400 nos. Army order successfully executed at Kandivli Plant in Mar'98.

MAJOR MILESTONES

1945 October 2, Mahindra & Mohammed formed.

36

1948: The Company was renamed Mahindra & Mahindra Limited (M &

M) Steel Trading business was started in association with suppliers in U.K

1948: Business connections in USA through Mahindra Wallace

1949: Wallace Steel trading on behalf of European suppliers Jeep

Assembly commenced

1950: The first business with Mitsubishi Corporation (for 5000 Tons) for

wagon building plates for supply from Yawata Iron & Steel

1953: Otis Elevator Co. (India) established

1954: Technical & Financial Collaboration with Willys Overland

Corporation

1956: Shares listed on the Bombay Stock Exchange Dr. Beck & Co.

formed - a JV with Dr. Beck & Co., Germany

1957: Mahindra Owen formed - a JV with Rubery Owen & Co. Ltd., UK

1958: Machine Tools Division started

1960: Mahindra Sintered Products Ltd. (MSP) formed - a JV with the

GKN Group, UK.

1962: Mahindra Ugine Steel Company (MUSCO) formed - a JV with

Ugine Kuhlmann, France

1963: International Tractor Co. of India (ITCI) formed - a JV with

International Harvester Co., USA

1965: Vickers Sperry of India Ltd. a JV with Sperry Rand Corporation,

USA.Roplas (India) collaboration with Rubery Owen, UK .Manufacture

of Light Commercial Vehicles commenced.

1970: Mahindra Engineering & Chemical Products Ltd. (MECP)

commenced operations.

1971: International Harvester collaboration ended

37

1975: Switch over to diesel vehicles in-house development.

1977: ITCI merges with M&M, to become its Tractor Division

1979: License from Automobiles Peugeot, France for manufacture of XDP

4.90 Diesel Engines

1982: License from KIA for manufacture of 4 Speed Transmissions

"Mahindra" brands of tractors born Siro Plats formed

1983: M&M becomes market leader in Indian Tractor Market. (Position

retained ever since)

1984: Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to

assemble and market utility vehicles in Europe

1986: Mahindra British Telecom (MBT) formed - a JV with British

Telecommunications plc (BT), UK

1987: Acuired International Instruments Ltd.

1989: Automotive Pressing Unit (now MUSCO Stampings) acquired from

GKW

1991: Introduction of Commander Series.

1992: Triton Overwater Transport Agency Ltd., formed. Implementation

of the Service Center project at Kanhe. Merged diverse activities of Steel,

Machine Tools, Graphics into Intertrade Division

1993: Mahindra Steel Service Centre Limited formed in association with

Mitsubishi Corporation and Nissho Iwai Corporation of Japan.

Mahindra Acres Consulting Engineers Ltd. (MACE) formed - a JV with

Acres International, Canada. Incorporation of MBT International Inc.,

USA, a wholly owned subsidiary of MBT

The Company’s maiden international offering the US$ 75m GDR issue.

38

INTRODUCTION OF ARMADA.

1994: Mahindra Realty & Infrastructure Developers Ltd. (MRIDL)

formedMahindra USA Inc., formed, for distribution of Tractors in the USA

EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic

Company Ltd. A/S, Denmark Reorganization of the Group creating six

Strategic Business Units .MSL Division (Auto Components) hived off to

form Mahindra Sona Ltd. Mahindra Nissan Allwyn Limited merged with

the Company.

1995: Mahindra Holding & Finance Ltd. (MHFL) becomes a subsidiary of

M & M to carry out business as investment company.Technical

collaboration with Mitsubishi / Samcor to manufacture L300.

1996: Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor Co. USA

to manufacture passenger cars .The Company made a Foreign Currency

Convertible Bond (FCCB) issue of US$ 115 million.

1997: A new die shop was inaugurated at Nasik. Inauguration of The

Mahindra United World College of India.

1999: Launch of ‘Bijlee’ a battery-operated, 3-wheeler environmental-

friendly vehicle.The largest online used vehicle website in India launched

by Mahindra Network Services.The business of Intertrade Division and

Mahindra Exports Ltd. combined and renamed Mahindra Intertrade Ltd.

The Company acquired major stake in Gujarat Tractors. Mahindra &

Mahindra Financial Services Limited becomes a subsidiary of M&M

2000: The Company unveils new logo.Mahindra Auto Specialties Ltd. a

new 100% subsidiary is formed.M&M sets up its first satellite tractor plant

at Rudrapur.The Company launches New Age Tractor, the Mahindra Arjun

605 DI (60 HP tractor). The Company launches Bolero GLX a Utility

Vehicle a response to needs of urban consumer.

39

2001: A 3-wheeler diesel vehicle "Champion" is launched. The Company

launches Mahindra MaXX a MUV positioned with the caption Maximum

Space, Maximum Comfort.M&M ties up with Renault for petrol engines.

M&M established a separate division to provide Defence Solutions

2002: M&M launches Scorpio - the new generation Sports Utility Vehicle

2003: Scorpio - Recipient of prestigious Awards "Car of the Year" Award

from Business Standard Motoring "Best SUV of the Year" and "Best Car

of the Year" Awards from BBC on Wheels "Car of the Year" Award from

CNBC Auto Car.M&M launches the "Invader" - a sporty open top vehicle.

M&M opens a second tractor assembly plant in USA.M&M launches

MaXX Pik Up. M&M Tractors awarded the prestigious Deming Prize for

excellence in Quality -the first tractor company in the world to receive the

award. M&M launches India's first Turbo tractor - Mahindra Sarpanch 595

DI Super Turbo. Scorpio wins National Award for R&D. M&M ventures

into Industrial Engine business. Mahindra Defence & Lockheed Martin

Information Systems, UK, strike an alliance for Defence Product.

2004: Launched the Mahindra World Tractor - a 75 HP tractor in the

overseas market.

Formed a new Sector, Mahindra Systems and Automotive Technologies

(MSAT), to focus on developing components as well as offering

engineering services.

Launched "Bolero" and "Scorpio" in Latin American, Middle East and

South African markets.

Signed MOU to enter into JV with Jiangling Motor Co. Group (JMCG) of

China to acquire tractor-manufacturing assets from Jiangling Tractor

Company, a subsidiary of JMCG.

M&M becomes the first Indian company to achieve sales of one million

tractors.

40

2005: Acquired 51% stake in SAR Transmission Private Limited, a

company engaged in manufacture of gears and transmission shafts.

M&M Farm Equipment Sector launch operations in Australia.

M&M becomes the first Indian auto manufacturer to launch the Common

Rail Diesel Engine (CRDe), offering it on the Scorpio.

Acquired 80% stake in the JV with Jiangling Motors i.e. in Mahindra

(China) Tractor Company.

M&M and Renault enter into a JV to manufacture of the mid-sized sedan,

Logan, in India.

M&M and International Truck and Engine Corporation enter into a JV to

manufacture Trucks & Buses in India. The first tractor from the JV,

Mahindra (China) Tractor Co. Limited, rolled out on 2 July 2005

2008: Mahindra USA was rated highest in Overall Satisfaction amongst

tractor manufacturers in a survey conducted by the North American

Equipment Dealers Association (NAEDA) – the apexdealer association in

the USA. Mahindra Tractors also recently featured in the top 10 list of

most innovative Indian companies compiled by the Wall Street Journal as

part of its survey to determine Asia’s 200 most-admired and innovative

companies.

At the 2008 Delhi Auto Show, Mahindra executives said the company is

pursuing an aggressive product expansion program that would see the

launch of several new platforms and vehicles over the next three years, in-

cluding an entry-level SUV designed to seat five passengers and powered

by a small turbodiesel engine. True to their word, M&M launched

the Mahindra Xylo in January 2009, and as of June 2009, the Xylo has

sold over 15000 models.

Also in early 2008, Mahindra commenced its first overseas CKD opera-

tions with the launch of the Mahindra Scorpio in Egypt, in partnership

41

with the Bavarian Auto Group. This was soon followed by assembly facil-

ities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, in-

clude Scorpio Pik Ups in single and double cab pick-up body styles as

well as SUVs.

The US based Reputation Institute recently ranked Mahindra among the

top 10 Indian companies in its 'Global 200: The World's Best Corporate

Reputations' list.

Mahindra & Mahindra has controlling stakes in Reva electric and has sub-

mitted letter of Intent for South Korea's Ssangyong 

Mahindra is currently preparing to sell the diesel SUVs and pickup trucks

starting in February 2010 in North America, through an independent dis-

tributor, Global Vehicles USA, based inAlpharetta, Georgia. Mahindrahas

announced it will import pickup trucks from India inknockdown kit

(CKD) form to circumvent the Chicken tax. CKDs are complete vehicles

that will be assembled in the U.S. from kits of parts shipped in crates.

M&M is one of the leading tractor brands in the world. It is also the

largest manufacturer of tractors in India with sustained market leadership

of over 25 years. It designs, develops, manufactures and markets tractors

as well as farm implements. Mahindra Tractors (China) Co. Ltd.

manufactures tractors for the growing Chinese market and is a hub for

tractor exports to the USA and other nations. M&M has a 100%

subsidiary, Mahindra USA, which assembles products for the American

market.

COMPETITORS MAHINDRA TRACTORS

Six main players - Mahindra & Mahindra Ltd (M&M), Tractors

Farm Equipment Ltd (TAFE),

Escorts Ltd, Punjab Tractors Ltd (PTL),

42

Eicher Ltd,

Hindustan Machine Tools Ltd (HMT) - control most of the market,

while a couple of players in the unorganized sector specialize in

used tractors.

Mahindra & Mahindra is the leader in the industry, with a market

share of 27%. Three multinationals,

New Ford Holland, John Deere and Greaves, have entered the mar-

ket in the past two years, but their combined sales have been below

6,000 units.

All Indian brands, except Punjab Tractors Ltd, have had overseas

tie-ups and support since the beginning.

THE MARKET SHARE OF MAHINDRA TRACTORS

The company has a strong presence in more than 20 countries with a

global customer base in excess of 1.2 Mn. In the year 2007, the company

sold about 115,000 tractors around the world. In India, which is the

world’s largest tractor market and having about 20 different tractor

manufacturers, the company enjoys a market share in excess of 30%. With

its recent acquisition of another tractor company in India, its combined

market share would reach 40%. In USA, the company has three assembly

facilities and is among the top 4 in the relevant

PRODUCT PROFILE

This particular line of tractors is tough, economical and reliable.

With 8 forwards speeds and maximum road speed of 30 Km per

hour, these tractors are especially suitable for road operations as

43

well.

They specialise in all kinds of farming operations, ranging from

secondary tillage to crop protection and mowing. Even operations

like material handling and transport can be carried out efficiently.

These tough and reliable tractors are designed to perform multiple

tasks and take on the rigors of work with ease. These tractors are

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loaded with a high performance engine, easy shift transmission,

advantageous single speed PTO and big lift capacity.

These tough and reliable tractors are designed to perform multiple

tasks and take on the rigors of work with ease. They specialise in

all kinds of farming operations, ranging from secondary tillage to

crop protection and mowing.

45

CHAPTER-III

T HEORETICAL   CONCEPT

Customer satisfaction refers to the extent to which customers are

46

happy with the products and services provided by a business. Customer

satisfaction levels can be measured using survey techniques and

questionnaires. Gaining high levels of customer satisfaction is very

important to a business because satisfied customers are most likely to be

loyal and to make repeated orders and to use a wide range of services

offered by a business.

The need to satisfy customer for success in any commercial enterprises is

very obvious. The income of all commercial enterprises is derived from

the payments received for the products and services to its external

customers. Customers are the sole reason for the existence of commercial

establishments.

Since sales are the most important goal of any commercial enterprise, it

becomes necessary to satisfy customers. For customer satisfaction it is

necessary to establish and maintain certain important characteristics like:

a. Quality

b. Fair prices

c. Good customer handling skills

d. Efficient delivery

e. Serious consideration of consumer complaints.

Satisfaction is the feeling of pleasure or disappointment attained from

comparing a products perceived performance (outcome) in relation to his

or her expectations. If the performance falls short of expectations, the

customer is dissatisfied. If the performance matches the expectations, the

customer is satisfied. If the performance exceeds expectations, the

customer is highly satisfied or delighted

7 STEPS TO SATISFY A CUSTOMER

It's a well known fact that no business can exist without customers. In the

business of Website design, it's important to work closely with your

customers to make sure the site or system you create for them is as close

47

to their requirements as you can manage. Because it's critical that you

form a close working relationship with your client, customer service is of

vital importance. What follows are a selection of tips that will make your

clients feel valued, wanted and loved.

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting

with a customer. If you're not used to this sort of thing it can be a pretty

nerve-wracking experience. Rest assured, though, it does get easier over

time. It's important to meet your customers face to face at least once or

even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work

with someone they've actually met in person, rather than a voice on the

phone or someone typing into an email or messenger program. When you

do meet them, be calm, confident and above all, take time to ask them

what they need. I believe that if a potential client spends over half the

meeting doing the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to

wait days for a response to an email or phone call. It might not always be

practical to deal with all customers' queries within the space of a few

hours, but at least email or call them back and let them know you've

received their message and you'll contact them about it as soon as

possible. Even if you're not able to solve a problem right away, let the

customer know you're working on it.

A good example of this is my Web host. They've had some trouble with

server hardware which has caused a fair bit of downtime lately. At every

step along the way I was emailed and told exactly what was going on, why

things were going wrong, and how long it would be before they were

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working again. They also apologized repeatedly, which was nice. Now if

they server had just gone down with no explanation I think I'd have been

pretty annoyed and may have moved my business elsewhere. But because

they took time to keep me informed, it didn't seem so bad, and I at least

knew they were doing something about the problems. That to me is a

prime example of customer service.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile

through the phone. This is very true. It's very important to be friendly,

courteous and to make your clients feel like you're their friend and you're

there to help them out. There will be times when you want to beat your

clients over the head repeatedly with a blunt object - it happens to all of

us. It's vital that you keep a clear head, respond to your clients' wishes as

best you can, and at all times remain polite and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a

clearly defined customer service policy is going to save you a lot of time

and effort in the long run. If a customer has a problem, what should they

do? If the first option doesn't work, then what? Should they contact

different people for billing and technical enquiries? If they're not satisfied

with any aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person

to person, or not knowing who to turn to. Making sure they know exactly

what to do at each stage of their enquiry should be of utmost importance.

So make sure your customer service policy is present on your site -- and

anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

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Have you ever received a Happy Birthday email or card from a

company you were a client of? Have you ever had a personalized sign-up

confirmation email for a service that you could tell was typed from

scratch? These little niceties can be time consuming and aren't always cost

effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your

customers, it's something. It shows you care; it shows there are real people

on the other end of that screen or telephone; and most importantly, it

makes the customer feel welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help

Them Out.

Sometimes this is easier said than done! However, achieving this

supreme level of understanding with your clients will do wonders for your

working relationship.

Take this as an example: you're working on the front-end for your client's

exciting new ecommerce Endeavour. You have all the images, originals

and files backed up on your desktop computer and the site is going really

well. During a meeting with your client he/she happens to mention a hard-

copy brochure their internal marketing people are developing. As if by

magic, a couple of weeks later a CD-ROM arrives on their doorstep

complete with high resolution versions of all the images you've used on

the site. A note accompanies it which reads:

"Hi, you mentioned a hard-copy brochure you were working on and I

wanted to provide you with large-scale copies of the graphics I've used on

the site. Hopefully you'll be able to make use of some in your brochure."

Your client is heartily impressed, and remarks to his colleagues and

friends how very helpful and considerate his Web designers are.

Meanwhile, in your office, you lay back in your chair drinking your 7th

cup of coffee that morning, safe in the knowledge this happy customer

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will send several referrals your way.

7. Honor Your Promises

It's possible this is the most important point in this article. The

simple message: when you promise something, deliver. The most common

example here is project delivery dates.

Clients don't like to be disappointed. Sometimes, something may not get

done, or you might miss a deadline through no fault of your own. Projects

can be late, technology can fail and sub-contractors don't always deliver

on time. In this case a quick apology and assurance it'll be ready ASAP

wouldn't go amiss.

Conclusion

Customer service, like any aspect of business, is a practiced art that takes

time and effort to master. All you need to do to achieve this is to stop and

switch roles with the customer. What would you want from your business

if you were the client? How would you want to be treated? Treat your

customers like your friends and they'll always come back

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CHAPTER-IV

DATA ANALYSIS & INTERPRETATION

1) Are you a satisfied with Mahindra Tractor?

S Options No Of respondents percentage

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No

1 Yes 85 85%

2 No 15 15%

Source: Questionnaire

Interpretation 1:

The sample drawn on probability basis shows that 85% of the

customers were satisfied with Mahindra tractors and only 15% were not

satisfied with Mahindra tractors.

Observation:

Most of the respondents approached were satisfied with Mahindra

tractors.

2) If “Yes” Which factor you consider is satisfies you most?

S.No Options No of Respondents Percentage

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1 Feature 16 16%

2 Low maintenance 69 69%

3 Looks 5 5%

4 After sales service 10 10%

Source: Questionnaire

Interpretation 2: The sample drawn on the probability basis clearly

shows that 69% customers are the opinion that low maintenance is the

satisfaction factor Mahindra Tractors, 10% of them who view After Sales

Service, 16% respondents of them view that feature of Mahindra Tractors

as satisfaction factor. And 5% of the customers are respondent looks of the

Mahindra Tractor.

Observation: Majority of the respondent are of the idea that low

maintenance of the top most feature contributing to customer satisfaction

followed by after sales services comfort style and features

As such, Mahindra should focus on the aspects, which will enhance the

customer satisfaction and thus the market share

3) Customer perception about Mahindra tractors in general?

54

S.

no

Options No of Respondents Percentage

1 Very good 12 12%

2 Good 38 38%

3 Average 50 50%

4 Bad 0 0%

Source: Questionnaire

Interpretation 3: Out of 100% of respondents, 38% of the customers of

the respondents gave Good response to Mahindra Tractor. 12% of the

customers gave Very Good response, 50% of the customers gave Average

response and 0% of the customers gave bad response to Mahindra tractors.

Observation: According to above diagram most of the customers are

respondents as average they satisfied with the Mahindra Tractor, it

satisfies that the customer satisfaction levels are very high. If the company

were to identify the pitfalls in their product and undertake remedial

measure, thus it will lead to more good word of mouth publicity.

4) Are you satisfied with the Safety and Comfort of Tractor?

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S.

no

Options No of Respondents Percentage

1 Extremely satisfied 15 15%

2 Satisfied 51 51%

3 Neutral 26 26%

4 Dissatisfied 8 8%

Source: Questionnaire

Interpretation 4: 100% of the respondents, 51% of the respondents

approached was satisfied with the safety and comfort features with the

M&M tractors. Followed by 15% was extremely satisfied, 26% of the

customers are neutral and rest of the 8% was dissatisfied with safety and

comfort feature of Mahindra Tractors.

Observation: As majority of the respondents are satisfied with the safety

and comfort feature of Mahindra Tractors. 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.

5) Are you satisfied with the Design?

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S.

no

Options No of Respondents Percentage

1 Satisfied 80 80%

2 Neutral 20 20%

3 Dissatisfied 0 0%

Source: Questionnaire

Interpretation 5: 100% of respondents 80% of the respondents

approached were satisfied with the Design of the Mahindra Tractors. 20%

of them neutral and 0% are dissatisfied with the design of the Mahindra &

Mahindra Tractors.

Observation: As majority of the respondents are satisfied with the design

of Mahindra 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.

6) Are you satisfied with Maintenance cost?

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S.

no

Options No of Respondents Percentage

1 Satisfied 72 72%

2 Neutral 22 22%

3 Dissatisfied 16 16%

Source: Questionnaire

Interpretation 6: The sample drawn on the probability basis shows that

out of 100% of respondents 72% of the respondents approached were

satisfied with the maintenance of the Tractor. 22% of neutral and 16% of

the customers is dissatisfied with the maintenance cost of the Mahindra

Tractors.

Observation: Though majority of the customer are satisfied that the

maintenance cost of Mahindra Tractor is less, around 16% are not satisfied

which may be because of comparison of Tractor with the newly launched

competing brands coming with even lower maintenance cost.

7) Are you satisfy with the fuel consumption of TRACTOR?

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S.

no

Options No of Respondents Percentage

1 Extremely satisfied 7 7%

2 Satisfied 56 56%

3 Neutral 33 33%

4 Dissatisfied 4 4%

Source: Questionnaire

Interpretation 7: 100% of the respondents 56% of the respondents

approached were satisfied with the fuel consumption of the Tractor.

Followed by 7% was extremely satisfied, 33% are neutral and rest of the

4% is more dissatisfied with fuel consumption of Tractor.

Observation: As majority of the respondents are satisfied with the fuel

consumption of Mahindra 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 dissatisfied.

8) Are you satisfied with providing two years warranty?

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S.

no

Options No of Respondents Percentage

1 Satisfied 75 75%

2 Not Satisfied 25 25%

If not, how many yeas you required:

Source: Questionnaire

Interpretation 8: 100% of the respondents 75% of the customers are

satisfied with the two years warranty providing on the Mahindra Tractors.

And the rest of the 25% of the customers are not satisfied.

Observation: Most of the customers are satisfied with the two years of the

warranty of the Mahindra Tractors, as for y advice the company have to

find out the customers those who are not satisfying with the two years

warranty to decrease the dissatisfaction of the customers.

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9) Are you getting total value of the money with M&M tractor?

S. no Options No of Respondents Percentage

1 High Value 35 35%

2 Total Value 55 55%

3 Somewhat Value 10 10%

4 Nothing 0 0

Source: Questionnaire

Interpretation 9: 55% out of the 100% of the respondent customers are

getting total value of the Mahindra Tractors, 35% of the respondent people

are get the high value of the Tractors. 10% of the customers are getting

some what value of the Mahindra Tractors. And according to my survey

0% of the customers are responding nothing on the Mahindra Tractors.

Observation: As for the above diagram high percentage of the customers

are satisfying with total value of the money of the Mahindra Tractors.

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10) Who influence to purchase M&M tractor?

S.

no

Options No of Respondents Percentage

1 Self decision 15 15%

2 Friends 8 8%

3 Others 28 28%

4 Family 49 49%

Source: Questionnaire

Interpretation 10: From the above chart 49% of the customers are

responding that Family Members are influence to buy the Mahindra

Tractor. As well as 28% of the customers responding that by motivating

other people like a sales executives neighbors. 15% of the customers are

responding that they have taken self decision to by a Tractor for their

agriculture purpose and commercial purpose. And 8% of the customers are

saying that Friends are influence to by the Tractor of the Mahindra

Company.

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Observation: I have done my survey on the customer’s satisfaction at the

Zaeerabad region; all the customers are bought the Mahindra Tractors

agricommercial purpose.

11) Availability of Spare parts of M&M tractor?

S. no Options No of Respondents Percentage

1 Hardly Available 5 5%

2 Available 50 50%

3 Easily Available 45 45%

Source: Questionnaire

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Interpretation: The availability of the spare parts 50% of the customers

are responding that spare parts are available, 45% of the customers are

responding easily available spare parts of the Tractors and the less 5% of

the customers are responding that spare parts Hardly available.

Observation: According to the above chart the availability of the spare

parts are less percentage of the people are saying that spare parts are

hardly available.

My suggestion on the availability of the spare parts of the Mahindra

Tractors the company have to satisfy the customers, some of the customers

are requesting to open the service centers on the weekends.

The spare parts for the Mahindra Tractors is available for every 20 km. for

this M&M company make a more contribution to set up this type spare

parts net work availability.

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12) Do you want to give any suggestion about any change in the Tractors?

Some of the customers have suggested that to change the gearing

system from the right side to left side.

To maintain the quality of the color

Some of the customers suggesting that to fix the horn system on

the middle of steering wheel.

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CHAPTER-V

66

FINDINGS

According to my survey, out of 100, responds 31% of the people

says neither agree nor disagree about overall service provided by

sree krishna Automobiles.

Out of 100 respondents 32% of the people moderate about tools &

techniques.

From the source of field survey, out of 100 respondents 56% of the

customers agree with sufficient & genuine spares,

According to my survey 60% of the customers says service charge

is very high in Mahindra authorized service center.

9% of the respondents are dissatisfied with the delivery of vehicle

timings.

From the source of field survey nearly 80% of Customers facing

the problems of servicing because of service center kept close on

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Sunday’s, help full to them, that the service station will opens on

Sunday’s.

SUGGSESTIONS

Management should make availability of sufficient tools and

techniques and genuine spare parts at all authorized automobile

dealer.

Management should try to reduce service charges as much as

possible.

Management should maintain delivery timings and on road break

down services. As they promised to their customers.

Majority of the customer’s wants to keep the service station open

on Sunday’s the management should try to provide service and

suggestions on Sunday’s also.

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CONCLUSION

The Mahindra & Mahindra tractors was playing a vital role in

tractors segmentation, it is the market leader of the tractors.

Mahindra & Mahindra capture the market share of 30% in the

tractor segment of automobile industry.

Most of the customers will prepare for Mahindra tractors

because of.

1. Brand image

2. Fuel Efficiency

3. Availability of spare parts

One of the best feature of Mahindra is 15 liters fuel tank Where

other’s could providing 13 liters.

M&M providing two year’s warranty, where other could

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providing 1 year warranty

ANNEXURE

Questions to the customers:

1) Are you a satisfied with Mahindra Tractor?

Yes No

2) If “Yes” Which factor you consider is satisfies you most?

Feature Low Maintenance

Looks after Sales Service

3) Your general perception about Mahindra Tractor?

Very Good Good

Average Bad

4) Do you satisfied with the Safety and Comfort measures of

Mahindra Tractor?

Extremely Satisfied Satisfied

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Neutral Dissatisfied

5) Are you satisfied with the Design?

Satisfied Neutral Dissatisfied

6) Do you satisfied with Maintenance cost?

Satisfied Neutral Dissatisfied

7) Are you satisfy with the fuel consumption of Mahindra Tractors?

Extremely Satisfied Satisfied

Neutral Dissatisfied

8) Are you satisfied with providing of two years warranty on

Mahindra Tractors?

Satisfied Not satisfied

If not, how many yeas require:

9) Are you getting total value of the money with M&M tractor?

High Value Total value

Somewhat Value Nothing

10) Who influence to purchase M&M tractor?

Self Decision Friends

Others Family Members

11) Availability of spare parts of M&M tractor?

Hardly Available Available

Easily Available

12) Do you want to give any suggestion about any change in the Tractors?

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a) Name: b) Occupation:

c) Age: d) Income: g) Modal of the tractor:

e) Address:

BIBLIOGRAPHY

I have done some field work in order to get the data about

customer satisfaction by asking some questions to different

customers at different service stations.

Some data was collected from sree Krishna automobiles

Zahirabad.

Reference Books:

Marketing Management, Philip Kotler 12th edition

Market Research, Naresh K. Malhotra

Reference websites:

www.mahindratractors.co.in

www.automobile.com

www.google.com

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