AUTOMOTIVE INDUSTRY IN PAKISTAN: Messages from S M Irfan Aqueel Chief Executive Officer, Millat Tractors Limited

TEXT: Millat Tractors Limited, an ISO 9001:2008 certified company is Pakistan's leading engineering concern in the automobile sector engaged in the manufacturing and marketing of world renowned Massey Ferguson (MF) tractors under licensing agreement with AGCO Ltd. USA; Forklift Trucks under license from Anhui Forklift Trucks, China; Diesel Engines; Diesel Generating Sets and a range of allied agricultural and industrial implements.

Millat Tractors has played a pivotal role in the transfer of technology and transformation of local engineering sector into a robust, vibrant, quality conscious Auto Vending Industry. The Company is regarded as a pioneer in setting up country's automotive vendor base. Today, a local content of more than 90% has been achieved in Millat tractors. The company offers tractor models in the range of 50-85 HP, diesel gen sets of capacities 12.5kVA to 150 kVA and 3 & 4 ton forklift trucks.

In order to address the fast growing demand of our valued customers, MTL is striving hard to develop new cost effective solutions pertaining to tractor/farm machinery and new agricultural implements through the ongoing research and development projects.

MTL has an unmatched, elaborate and extensive field network spread throughout the country. This network comprises of 81 main dealers, 50 spare parts dealers and more than 500 authorized workshops where MTL trained technicians provide efficient after-sale service to its customers.

With more than 60% share of the local tractor market, MTL has integrated and consolidated its technical know-how, expertise and sizable investment in allied industries to ensure adequate supplies of quality components through 3 downstream companies. These companies, which are part of the Millat Group, include Millat Equipment Limited, engaged in the manufacturing of power train parts, Bolan Castings Limited, that manufactures precision castings for the automotive industry and Millat Industrial Products Limited, which manufactures automotive batteries.

Millat Tractors has been recognized internationally by Plimsoll - UK as 16th largest company with exceptional performance in Global Tractor Manufacturing Industry in the year 2012.

Forbes Global magazine has included MTL in "Asia's Best 200 Under a Billion Dollar Companies" in the years 2010, 2011 & 2012. The company has received achievement award in "Tractor & Agriculture Implements" sector by FPCCI in 2016. It is a matter of great pride that Millat Tractors has consistently maintained its position in the Top 25 companies of Pakistan Stock Exchange for more than a decade, Brands Foundation, Pakistan has bestowed "Brands of the Year Award" to Millat Tractors in the category of 'tractors' in 2016.

The Company after entering into an export agreement with its principals, M/s AGCO started exporting tractors to the African & Middle Eastern markets which is a great achievement in itself and pride for Pakistan. This also reflects the quality and price competitiveness of Millat produced Massey Ferguson tractors, worldwide.

MTL has responded to the challenge of Covid-19 by effectively managing its own operations and broadening and diversifying its vendor base to maintain the supply of quality automotive parts while effectively responding to the continuously changing environment of the international market.

The company has recently taken lead in the local automobile sector by developing & launching Pakistan's 1st emission compliant diesel engine enabling not only to address the environmental issues but also further expand its export market.

To enhance the present path of economic growth the tractor industry requires support of the Government in the form of providing conducive business environment, implementing policies that purely focus on acquiring Export business in a free market economy and reducing intervention of government departments in the spirit of providing "ease of doing business" and generation of wealth in the country.

Despite all odds, MTL has made history by becoming the first Pakistani Tractor Manufacturing Company which has exported over 2000 Tractors, Engines and Components in 2020-21, and was listed in the Top 50 exporters of Pakistan. This marks an unprecedented growth in exports by recording a phenomenal rise of 135% compared to its last year's performance.

MTL is continuously striving not only to contribute towards the revival of Pakistani economy, but also to delight its customers while fulfilling its social and national responsibilities.

Copyright Business Recorder, 2021