Industrial Visit-1.docx

The Bhopal School of Social Sciences

Report on Industrial Visit Eicher For the partial fulfillment of BA MGMT I YEAR (2017-18)

Submitted to: Yashvir Gurjar

Submitted by: Sameeksha Sharma

INTRODUCTION TO THE COMPANY EICHER TRACTORS The Eicher brand of tractors are one of the oldest names in the industry, and with the all new and refreshing Eicher ‘E’ symbol, are a household name in India, and a respected mark of trust in various parts of the world. A reputed brand in the agricultural vista, Eicher tractors are renowned for their high value for money proposition, providing cost-effective and proficient products packed with some of the finest global technology. Synonymous with ruggedness and reliability, Eicher tractors are efficient, economical and offer an Ummed Se Zyada, (translated means “it exceeds expectations”) experience. Blended with precision technology and the promise of TAFE, there is an Eicher tractor for everything and a tractor for all.

HISTORY OF EICHER TRACTORS In the small village, Forstern near Munich, in Bavaria, Germany, the first Eicher tractor was made, in the 1930s, by Joseph and Albert Eicher. It was the beginning of considerable development of Eicher's Forstern and Dingolfing factories. These pioneers made several tests and carried out a patient work of clarification. The first evolution was marked by the construction of an automatic mower and a three-wheeled tractor. The brothers Joseph and Albert Eicher were born and grew up in an agricultural part of Germany. Their personal taste for agriculture favored the development of ideas which led to the manufacturing of machines and modern devices. In 1949, their manufacture of the first farm tractor with an engine with air cooling allowed Eicher to rank among the most important manufacturers of tractors. In 1959, Eicher set up the Eicher Tractor Corporation of India Private Ltd., along with the Goodearth Company of New Delhi, India, and began production in 1960 of Indianbuilt Eicher tractors. That company sold the tractor business to TAFE, also of India, which still produces Eicher tractors. In the 1960s Eicher started the production of a light truck, which was also produced for Magirus-Deutz at a later date. In 1973, Massey Ferguson purchased Eicher, and many Massey-licensed Eichers were built. They later sold their interest, and Dromson now owns the company. They now build specialized tractors for vineyards.

 TAFE Motors Tractors and Farm Equipment Limited (TAFE) is a unit company of the Amalgamations group, one of India's largest light engineering groups with diverse interests in diesel engines, automobile components, tractors and related farm machinery, lubricants, panel instruments, hydraulic pumps, engineering tools, storage batteries, paints, engineering plastics, automobile franchises and printing apart from interests in agribusiness, book selling and publishing. The group's leadership technology, built on foreign know how has been nurtured through indigenous efforts. TAFE was established in 1961 to manufacture and market a range of Massey Ferguson tractors and related farm equipment in India. One of the largest tractor manufacturers in India, TAFE's vision is to be the first choice of customers in India and to also move towards a growing presence in the international markets. TAFE has collaboration with AGCO Corporation, headquartered in Duluth, Georgia, which is one of the largest manufacturers, designers and distributors of agricultural equipment in the world. Its products are sold in more than 140 countries. With a network of more than 500 dealers, branches, service outlets as well as its own sales offices and depots covering the entire width and breadth of India, TAFE is committed to providing complete farming solutions to its customers and empowering them to work towards increased farm productivity, prosperity and profits. Tractors and Farm Equipment Limited (TAFE), has been a pioneer in the mechanization of the Indian farms. Beginning with the popularizing of tractors in agriculture in the early 60s, TAFE has many firsts to its credit. TAFE was the first company to market a total package of Tractors and farm equipment to not only provides farm power but also interfaces to transform the farm power to increased farm productivity. TAFE was also the first to introduce the Direct Injection technology in India, thereby initiating considerable fuel saving and the resulting economies in tractor operations cost to its customers. TAFE was also the first Indian manufacturer to launch a 75 HP tractor to cater to the emerging needs of very large farms and agri-businesses. With three manufacturing locations at Chennai (Sembiam), Madurai (Kallidaipatti) and Bangalore (Doddaballapur), TAFE has a large manufacturing base. Its Madurai plant, the latest and possibly the largest such plant in the

country is specially tailored to take on short run production batches to the exacting standards demanded by advanced countries. All its plants and sales offices are linked by VSAT links providing fast and efficient communications and data linkage another first of its kind in India. Tractors and Farm Equipment Limited (TAFE), is also involved in the following areas, apart from its core business of manufacturing and marketing tractors. 1. TAFE has developed a range of matching trailers, implements and accessories. These are marketed through TAFE's dealer network by a totally owned subsidiary. 2. TAFE, through TAL is also involved in the marketing and distribution of lubricants and greases for tractors through its dealer network. 3. TAFE is also involved in the packaged power industry through its Power Source Division. 4. TAFE has in-house facilities for the manufacture of hydraulic pumps and gears for tractors. A related facility for the manufacture of panel instruments, not only for captive use but also for the growing automobile industry in India is an integral part of the company. 5. TAFE has also diversified into Engineering plastics and production of tools and dies for this industry. 6. TAFE's vision is not just wishful thinking but based on recognized engineering, marketing and financial strengths, built up over the past four decades. In all that it does, TAFE pursues excellence. 7. To achieve the distinction of the first choice among the farming community of India and ensure a growing presence in international markets through setting leadership standards of performance and customer care in the agricultural machinery business. "To us in TAFE, excellence is not something that we engineer, input or inspect into our products. It is an innate desire that inspires our hearts at work and at home and ripples out into the world around us”.

TMTL

TMTL - A wholly owned subsidiary of TAFE (Tractors and Farm Equipment Limited). TAFE is a unit company of the Amalgamations Group, one of India's largest Light Engineering Groups with diverse interests in Diesel Engines , Automobile components , Tractors and related farm machinery, lubricants, panel instruments, hydraulic pumps, Engineering Tools , Storage Batteries, Paints , Engineering Plastics , Automobile franchises and Printing apart from interests in Agribusiness , book selling and publishing. The group's leadership technology, built on foreign know how has been nurtured through indigenous efforts. TMTL has in turn three divisions in India –   

Tractor Division, Bhopal – Manufacture and Assembly of Tractors Engine Division, Alwar – Manufacture and Assembly of Auto & Stationary Engines Transmission Division, Parwanoo – Manufacture of various Transmission

Components like Spur Gears, Helical Gears, Spline Shafts, Crown Wheel Pinion, Cam Shaft and Housings.

Tractor Division at Bhopal viz. Eicher Tractors is a leading Tractor manufacturer in India and manufacturing and selling “EICHER” brand of tractors. Eicher Tractors, a pioneer in Tractor manufacturing in India, rolled out its first Indian Tractor in 1959 with the collaboration of GebrEicher, Germany in 1960. The other group company TAFE too is amongst the oldest tractor manufacturer in India and is manufacturing and selling Massey Ferguson and TAFE range of Tractors. TAFE and TMTL as a group is the second largest Tractor manufacturer in India. Jointly, we have more than 25 tractor models and 100 variants, which is the largest range being offered by any Tractor manufacturer in India. Eicher Tractors has manufacturing and design facilities in Mandideep in Madhya Pradesh and producing 13 base models ranging from 24 HP to 50 HP. We are the only company, which offers a choice to the customers between Aircooled, and Water cooled technology. Eicher range of tractors enjoys unique advantages in terms of phenomenal fuel efficiency, its easy maintenance, higher pulling capacity, reliability and suitability for farm & commercial applications.

TAKES OVER EICHER TRACTORS: BIGGEST IN TRACTOR INDUSTRY The Chennai based tractor major, Tractors and Farm Equipment Limited has been taking over of Eicher’s tractor division near Bhopal, engine division at Alwar and gears division at Parwanoo, in the biggest such acquisition in the history of the Indian tractor industry. TAFE, already the second largest manufacturer of tractors in India, with this approval, comes within striking distance of market dominance in the domestic tractor industry. Speaking at a media meet, TAFE’s Director, Mrs. Mallika Srinivasan said, “This move was a well deliberated strategic move on our part. This acquisition will provide strong synergies of growth in the future to help achieve market dominance”. ‘TAFE motors and tractor limited’ company’s director Mrs. Mallika Srinivasan decided to take over Eicher tractors. She went on to add “TAFE has long held a significant presence in the 30-40 HP segment and the Eicher brand holds substantial market shares in the below 30 HP segment. The respective brands have a strong brand presence and equity in the customers’ minds. This coming together of the brands with strengths in individual segment forms a perfect fit to take on the tractor market which is currently on an upswing. It is in this scenario that this coming

together of two major brands in the industry becomes highly significant. This also represents a giant leap for us in our vision to become the farmers’ first choice”. With this acquisition, TAFE’s combined market share is 22 per cent and a combined volume of about 53,000 tractors. TAFE already has large number of products and variants to suit the changing demand patterns of tractor customers across the country. With the addition of the portfolio of products offered under the Eicher Brand, this new venture will offer to its customers the best in terms of product range, value for money, quality, and innovation in design and assured post sales product support. The move will also result in TAFE having a combined distribution network of over 2000 dealers, branches, service and parts outlets and customer contact points which is the largest in the industry. TAFE and Eicher tractors will retain their individually strong identities at the brand level and distribution level. The potential synergies of growth made possible by this move will translate into positive benefits to the employees, vendors and dealers and provide them ample growth opportunities. With its major focus being on the tractor business, TAFE aspires to be the number one player in the domestic market and the growing presence in the international market. TAFE buys Eicher's tractor, engine & gear businesses for Rs 310 crore. The Eicher Motors board has cleared the sale of the company’s tractor, engine and gear businesses to Tractors and Farm Equipment’s, TAFE, for Rs 310 crore. TAFE will purchase the Eicher facilities through an SPV called TAFE Motors & Tractors.

PURPOSE As a part of our Management Practical we were taken for an Industrial Visit to The Eicher Tractors which is a unit of TAFE Motors and Tractors Limited, located at Mandideep. The main purpose of the visit was to see how their management functions and enhance our management knowledge and improve our management skills. These are few of the things we got to learn about Eicher’s management from our Industrial Visit.

 GROUP COMPANIES OF EICHER      

Eicher Tractors Limited (ETL). Eicher Motors Limited (EML). Eicher Exports Limited. Eicher Span Financial Limited. o Eicher Consultancy Services Limited. Capol Farm Equipment Limited (CAFÉ). Eicher Research Centre, Faridabad.

 TECHNICAL TIE UP 1. Technology transfer from Ricardo of UK for developing air-cooled engines 2. Technology transfer from SISU (VELMET) Finland, for higher horsepower tractors

 HUMAN RESOURCE DEVELOPMENT (HRD) Human Resource Development is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs.

 TRAINING  Types of Training :  Behavioral Training - For all level.  Functional Training - For all level.  Potential Related Training - For all level.  Multi-Skill Training - Workmen & Jr. staff.  Training for Dealers - To deal with customers.  Training Schools - Skill development.

 International Exposure - Sr. Level Executives to establish TQM.

 TOTAL QUALITY MANAGEMENT (TQM)

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Concept of TQM came to Eicher in 1989 with the following understandings:  Machine cannot do miracle, system & software are of equal importance.  Role of human resources are of paramount importance to derive the best out of Machines.

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In 1989 to Popularize the concept of TQM an experienced Faculty invited to train the People and later on appointed as adviser to the Chairman.

 RESEARCH AND DEVELOPMENT Comprehensive facilities for development of new tractor models including diesel engines. Facilities at ETE include - State of art Design officers with fully networked CAD / CAE environment, own Prototype / Tooling manufacturing facilities. Various Labs for Design verification, Field Simulation, Product Testing and validation and Information Center with facilities of Technical Library, Internet and Archives.

 EXPORTS U.K., SRI LANKA, BANGLADESH, NIGERIA and NEPAL.

 SALES & SERVICE NETWORK Gears are sold through a network of 16 distributors each having over 250 stockiest and retailers mainly entering to the replacement market. Company depots are located at Calcutta, Madras, Vijayawada, Bangalore, Ahmadabad, Indore and Delhi for supplying to distributors.  EICHER MARKETING The tractor operations are located at Bhopal plant. The combined production capacity is about 45000 tractors per annum. Eicher tractors manufacture and markets tractors from 24 HP to 61 HP range. Company has its own distribution network in most agrarian states and has 350 dealers. Marketing network is spread across the country and there are 35 area offices in smaller cities of the country. Eicher offers 2 years warranty on the tractors against any type of manufacturing defect & efforts are made to upgrade the service network by providing doorstep service to the farmers. The Marketing team consists of 52 executives and staff members. The group shall strive to become truly global in its operations.

OUTCOMES

The main outcomes of the visit were: 1. We gained hands-on experience of how industry operations (Marketing/Finance/Operations/SupplyChain etc.) are executed. 2. Industry visit bridged the gap between theoretical training and practical learning in a reallife environment. 3. Industrial Visit enhanced our interpersonal skills and communication techniques. 4. We became more aware of industry practices and regulations during industry visits. 5. Industry visit broadens the outlook with exposure to different workforces from different industries. 6. We also learnt about the Role of Top Management which are as follows: 

Achieve excellence in Quality.

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Delegation of Authority and Responsibility.

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Developing Ownership among the employees.

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Involvement and commitment of development of employees.

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Freedom to take initiative.

HURDLES There were no hurdles that I faced during my Industrial Visit. It was very informative visit for all of us. We got a chance to see the manufacturing and assembly unit of Eicher Tractors and also the functioning of their management.

CONCLUSIONS

Flow Chart of the Tractor Assembly Process