M&M ownership leads to turnaround for Punjab Tractors Ltd.
After having been acquired by Mahindra & Mahindra last year, Punjab Tractors Ltd. (PTL) - which seemed to be in the financial doldrums earlier - is now beginning to do much better. The company’s excess capacity at its two plants at Mohali is now being used to manufacture Mahindra tractors, While PTL’s own Swaraj-branded tractors have also gained some ground.
According to reports in the media, sales of PTL tractors increased by 57% in the first half of this fiscal, at 17,257 units, and in the same period, the company’s market share increased from 7.3% to 10.7%.
With a production capacity of 60,000 tractors per annum, both of PTL’s manufacturing units at Mohali have excess capacity, which will now be used to make Mahindra tractors. This also means that M&M will no longer establish a new tractor manufacturing facility (the company was earlier looking at setting up such a unit somewhere in South India), which is likely to result in a saving of hundreds of crores of rupees for the company.
[Via: indiaautomotive]
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