Assignment 1

Pre-visit report on M&M Swaraj tractor plant, Mohali

The Swaraj brand has a rich history emerging from the spike in the demand for tractors during the Green Revolution of the mid-sixties. Swaraj has become synonymous with tractors that are powerful and reliable because of their long term expertise in delivering such products consistently.

The Mohali plant, which mainly produces under-40bhp tractors, is the oldest plant of the company and began operations in 1974 when five engineers from the Central Mechanical Engineering Research Institute of Durgapur developed an indigenous design of a tractor. 

Product line and markets: 

They have models to suit small farms and large, first-time buyers and those seeking upgrades, and agricultural as well as commercial operations. Their product range starts from a 22 HP category tractor and varies up to 72 HP category tractors, catering needs as per the customer requirements. They also offer compatible wheel-type and track-type harvesters.

Their market share rose from nine percent in 2007-08 to 13 percent in 2012-13 and sales volumes doubled from 35,000 units in 2008-09 to 69,000 units in 2012-13. At present, sales volumes are around 90,000 units.

There are more than 7,00,000 satisfied customers of Swaraj in the country. Swaraj tractors are also exported to various countries including Bangladesh, Nepal, Sri Lanka, Nigeria, Ghana, Gambia, Zimbabwe, Zambia, Tanzania and the USA.

Quality Management concepts:

Earlier, the Swaraj brand had its own following but for some time there was a lull in terms of product refreshment and product features, in terms of new offerings and consumers. This led to the adoption of TPM (Total Productivity Maintenance) and TQM (Total Quality Management) by the Swaraj division. The average age of the Swaraj workforce today is in the 20s, with the company running two shifts a day in the assembly and paint shop.

Swaraj has won the Quality Excellence Award in the year 2008 and the Deming Prize as well as the TPM Excellence award in the year 2012.

 It is quite clear that the Swaraj tractor brand is giving competitors a run for their money. It is slowly garnering market share and volumes and farming new growth.