a

On
To Study the Impact of Tractor Dealers Infrastructure on Sales In

Mahindra & Mahindra (Swaraj Division)

(Formerly Punjab Tractor Ltd.)

Submitted in partial fulfilment of the requirements for the degree of Master of Business Administration (2010-2012) affiliated to Punjab Technical University, Jalandhar

Guided by : Mr. Varinder Gupta (Sales Manager)

Supervised by :Ms. Priya arora

Submitted by :Name- anjay kr. pandey MBA - 3rd Sem Roll No.- 104982249501

PUNJAB INSTITUTE OF MANAGEMENT AND TECHNOLOGY, MANDI GOBINDGARH, PUNJAB

STUDENT DECLARATION
I hereby declare that the final Project Report To Study the Impact of Tractor Dealers Infrastructure on Sales submitted in partial fulfillment of the award of the degree of Master of Business Administration (MBA) to punjab institute of management and technology (pimt), mandi gobingarh (Approved by A.I.C.T.E New Delhi, Affiliated to Punjab Technical University, Jalandhar) is one of my original work and not submitted to any other Degree/Diploma, fellowship or other similar title.

Anjay

ACKNOWLEDGEMENT
This has been a truly learning experience as the project assigned had a great learning potential & tremendous scope of application. It gives a great pleasure in acknowledging the invaluable assistance extended by the various personalities in the successful completion of this project report. I would like to gratitude Mr. Varinder Gupta, Sales Manager, for his guidance and support at every step. I express my deepest sense of gratitude to my respected guide priya arora (Faculty Management, pimt) for his encouragement, guidance & taken interest in my project. I am also indebted to Ms. Simrpreet Kaur, H.O.D. Management, for providing enough guidance in completion of this project. The duration of the training has been period of learning, not only about the project but also high moral values, ethics and great work culture.

Last but not the least I thank my family members and my friends for giving much needed support.

Date :

anjaykr. pandey

CONTENTS

INDIAN TRACTOR INDUSTRY

INTRODUCTION India being a predominately agriculture country, where agriculture is the life and blood of the economy, has been a traditional manufacturer of different type of farm machinery and implements. However, the use of advanced agricultural techniques in India stared only in early 60s. Modernization and tractorization in Indian agricultural is only a post independence phenomenon. One of the achievements of green revolution has been that the farmers increasingly realised the advantage of tractorization. This would happen only because of awareness of new farm technology among the farmers, rise in the level of their income an education. The biological source if energy especially bullocks, could not cope with the requirements of the changed situation therefore, introduction of tractors got accelerated in several agriculturally advanced states of country like Punjab, Haryana, Maharashtra, etc. tractors were introduce to Indian agriculture in early 20s. The demand of tractors rose sharply in last two decades. However, the rate of adaptation of tractors in diff. Part of country Punjab occupies no.1 rank in this regard. Punjab possess only 1.5 % of the geographical area of the country; the density of 85 tractors per hectare in Punjab is the highest as compared to national average of 10.5 tractors per hectare.

India is primarily an agrarian nation, with more than 50% of our GDP being contributed directly or indirectly by agriculture. No wonder India is considered the largest tractor market in the world. But in terns of total tractor in use in the country , we are ranked 8th. In terms of penetration, India has 10.5 tractors per thousand hectare of gross cropped area (GCA) as compared to the international average close to 30 tractors per thousand hectare of GCA Figuratively speaking, Indias largest GCA is next only to the big two USA and Russia. That and the highly fragmented land holding in India have helped our country to become the largest tractor market in the world. Thus the Indian tractor market has to be only after considering its position in the world Description Arable land Irrigated area Tractors in use Units Million hectare Million hectare Tractor/1000 hectare Despite a phenomenal increase in tractors population in the country, the tractor density is very low at about 10.5 tractors per thousand hectare of GCA in comparison to the international of about 28 tractors. also , the small size of land holding in India have led to low average of tractor at 35 horse power , which is far low then the global average of above 80 HP Easy availability of bank finance coupled with the declining interest rate has propelled the demand for tractors. Furthermore, a good monsoon a strong growth in agricultural production and an increase in the irrigated area rate expected to lead to a long term growth of 7 to 8 %. There has been a boom in the tractor industry since 1997. The sales of tractors are not evenly distributed. They are mainly concentrated in the north and North West were Punjab, Haryana and UP account for mainly 50% of the tractor sales. Punjab alone accounts for 26%.the main reason is comparatively larger land holdings and the affluence farmers in these states .new market like MP, Tamil Nadu, Andhra Pradesh, Maharastra and Gujarat are also growing at fast pace. World total 1,444 249.6 28 India 170 45.8 10.5 Indias rank 2 2 8

HISTORY OF THE COMPANY

In 1965, Government of India research institute Central Mechanical Engineering Research Institute, Durgapur, WB initiated design and development 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 manufacturers nine models of tractor and several models of combine harvesters. The manufacturing units are located at SAS Nagar, Asron Village of Nawanshahar District and Nabha of Patiala District, Punjab. Actis, a private equity firm acquired 29 per cent 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 per cent stake in Punjab Tractors Ltd. that will reportedly increase M&M's share in the domestic tractor market from just over 30 per cent to nearly 40 per cent. The 43 per cent stake in Punjab Tractors includes the 29 per cent owned by Actis and 14.2 per cent by the Delhi-based Burman family. In July 2007, Mahindra upped its share in Punjab to 64.6%.

COMPANY
Punjab tractor limited was established in the year 1970 between 1971-73 PTL setup Swaraj project for 5000 tractor per annum at a capital outlay of Rs.37.0 million . The equity base was Rs.11.0 million . In 1974 Swaraj 724 (26.5 hp) tractor was commercially introduced. Its second tractor model , SWARAJ 735(39 hp) was developed its own R & D . Today PTL has four operating division with 2202 employees. It has 443 dealers networks and 281 ancillary base. In the year 2002 the cumulative tractor sales of the company crossed 5,00,000 mark.

BOARD OF DIRECTORS
The Company's current Board of Directors is as follows: NAME 1. Mr. Keshub Mahindra DESIGNATION Chairman Vice Chairman and Managing Director Director Director Director Executive Director & Group Chief Financial Officer (Group CFO) Executive Director & Secretary Director Director Director Director Nominee of LIC

2. Mr. Anand G. Mahindra 3. Deepak Shantilal Parekh 4. 5. 6. Nadir Burjorji Godrej M. M. Murugappan Bharat Narotam Doshi

7. 8. 9.

Arun Kumar Nanda Narayanan Vaghul Dr. Ashok Sekhar Ganguly

10. R. K. Kulkarni 11. Anupam Pradip Puri 12. Thomas Mathew T.

PUNJAB TRACTORS LTD EQUITY SHAREHOLDING PATTERN AS ON 31st March,2008

1 2 3 4 5

Mahindra Group LIC/GIC/IFCI/BANKS Mutual Funds / Banks Other FIIs Public

64.64% 22.75% 2.37% 0.44% 9.80%

PRODUCT LINE

TRACTOR RANGING FROM 24 h.p TO 75 h.p FORKLIFTS HARVESTING COMBINES AUTOMOTIVE CASTINGS DIESEL ENGINES AUTOMOTIVE SEATING AND COMPONENTS

1965

Govt. of India's research institute (CMERI) at Durgapur initiates design and development of SWARAJ tractor based on indigenous know-how.

1966

Punjab Govt. through PSIDC acquires SWARAJ tractor's design from CMERI and establishes Punjab Tractors Ltd. (PTL) for its commercialization.

1971.73

PTL sets up SWARAJ Project for 5,000 tractors per annum at a capital outlay of Rs. 37.0 million with an equity base of Rs 11.0 million

1974 1975 1978 1980

Swaraj 724 (26.5 HP) tractor commercially introduced. 2nd tractor model SWARAJ 735(39 HP) developed by own R&D, commercially introduced. 3rd Tractor model SWARAJ 720 (19.5 HP) developed by own R&D, commercially introduced. Guided by social concerns and responsibility, PTL takes over PSIDC's sick scooters unit - Punjab Scooters Ltd. (subsequently renamed as SWARAJ Automotives Ltd.) India's first Self propelled Harvester Combine - SWARAJ 8100 developed by own R&D, commercially introduced. SWARAJ Foundry Division set up in Backward area

1983

4th Tractor Model - SWARAJ 855 (55 HP) developed by own R&D, Plant 1. commercially introduced. Expansion of annual capacity to 12,000 tractors per annum at

1984

SWARAJ MAZDA Ltd. promoted in technical and financial collaboration with Mazda Motor Corpn. & Sumitomo Corpn. Japan for manufacture of Light Commercial Vehicles. PTL's equity participation is Rs. 30.4 million (29%) and that of Mazda and Sumitomo's Rs. 27.0 million (26%).

1985

SWARAJ Industrial Forklift Trucks developed by own R&D, commercially introduced.

1986

SWARAJ ENGINES Ltd. promoted in technical and financial collaboration with Kirloskar Oil Engines Ltd.(KOEL) for manufacture of diesel engines. PTL's equity participation is Rs. 6.9 million (33%) and that of KOEL's Rs 3.6 million (17%).

1993 1994 1998 1999 2001

Annual tractor capacity expanded to 24,000 per annum at Plant 1. Setup of tractor Plant II at Village Chappercheri with annual capacity of 12,000 per annum. Commencement of expansion to 60,000 tractors(30,000 at each plant). 5th and 6th tractor models - SWARAJ 733 (34 HP) & SWARAJ 744 (48 HP) developed by own R&D, commercially introduced. PTL won National Championship trophy in competition organized by All India Management Association (AIMA) for young managers. Economic times and Boston Consulting Group selects PTL as one of the India's finest 10 companies out of Economic times top 500 Companies.

2002 2003

Cumulative tractor sales crosses 5,00,000. PSIDC's disinvestment of its entire Equity holding (23.49%) in PTL in favour of CDC Financial Services (Mauritius) Ltd. With this, total holding of CDC & its associates in PTL stands at 28.48%.

2004 2005

7th & 8th tractor models - Swaraj 939 (41 HP) & Swarj 834 (34 HP) developed by own R&D, commercially introduced. PTL disinvested 15,73,000 euity shares of Rs. 10/- each of Swaraj Mazda Ltd. (constituting approx. 15% of SML's paid up capital) in favour of Sumitomo Corporation, Japan, a joint venture partner in Swaraj Mazda Ltd. at a total consideration of Rs. 629.2 million

2007

CDC/Actis Group and Burman Family's disinvestment of their Equity holding in PTL (43.3%) in favour of Mahindra Group (M&M). M&M made open offer to shareholders for another 20% equity of the Company. Mahindra Group's equity holding in the Company stands at 64.6% Cumulative Tractor Sales cross 600,000. Swaraj Track Type Combine designed and developed by in-house R&D, commercially launched

2008

Swaraj 3 Tonne Battery forklift, designed and developed by in-house R&D, commercially launched

QUICK FACTS
Year of establishment Business Group Registered Office Listing & its codes Corporate Office 1970 Swaraj tractor Phase 4 , industrial area S.A.S Nagar (MOHALI) Punjab NSE: PUNJABTRAC BSE: 500344 Sector 34 A, Chandigarh Tele- +(91)-172-2647700 Website FAX : +(91)-172-2615111 WWW.SWARAJENTERPRISE.COM

Farm equipment major Mahindra & Mahindra 's Swaraj division today said it is aiming to perform better than the industry's expected growth of 10-15% during the current fiscal on the back of good monsoon and higher Minimum Support Price (MSP) announced by the Centre. "The (tractor) market will grow around 10-15% and we are looking for a better than market growth," company's Chief Executive Bishwambhar Mihra told reporters. "All the factors including monsoon, rural spending by government, shortage of

labourand buoyancy in MSP are positive this year, which will drive the growth," he added. Swaraj Division of Mahindra and Mahindra posted a sales growth of 24% last fiscal against the market growth of 19.8% in the same year. Industry grew at a high rate of 30% in 2009-10, 19.8% in 2010-11, and in 2011-12 it is expected to grow between 10-15%, he said. Mahindra and Mahindra, in 2007, had acquired a majority stake in Punjab Tractors Limited which used to produce Swaraj brand of tractors, and in February 2009, it was merged in Mahindra and Mahindra as Swaraj Division. The market share of Swaraj Division, which has two plants here, has increased to 12.4% from 9% in three years back and recorded sales of 60,997 units in last fiscal. The division is currently operating at 120% capacity and has planned to spend Rs 50 crore in doubling the capacity of its foundry to 60,000 tonne. "We are looking for second phase of expansion of our foundry here by doubling it and it will take six months to complete," he said. The company is also planning to launch new fully air conditioned tractor with power of 85 hp in next six months for the first time for the domestic market, Mishra said. "These AC tractors will be for farmers who have huge land," he said, adding that the company would manufacture new tractor at its Mumbai plant. Additionally, Mahindra and Mahindra is coming up with new plant in Andhra Pradesh

with a capacity of 100,000 tractors per annum with an investment of Rs 350 crore. "The new plant will also manufacture Swaraj brand of tractors of 40-45 hp, which has huge demand in southern India."

CORPORATE MISSION STATEMENT

1. To produce and sell quality products with distinctive features at reasonable prices and with better than the best sales services to ensure durable satisfaction to customers. 2. To create a culture where each employees, vendor and dealer feels he is an owner and part of the family. 3. To provide consistently superior return to shareholders and financial stock holders. 4. To conduct business with highest standard of corporate behaviour, integrity and social ethics.

SWOT ANALYSIS OF PUNJAB TRACTORS LIMITED

Strengths
PTL has four constituencies to create wealth: (a) Farmers In an era where tractors were manufactured by players with foreign collaboration (without adapting to Indian conditions), PTL introduced its rugged, simple-to-maintain tractor, keeping in mind the Indian farmer and the environment, he operates in. This market, the beginning of treating customers as the extension of the company. This is the only company that do not treat spares as profit center. It supplies all the parts at cost to the dealer, and keeps the cheque that the same is passed on to the farmer. In contrast, all other tractor makers make more margins on spares than tractors. (b) Dealers Swaraj dealers are more charge, loyal and consequently affluent, PTL has left the dealership neither has the company as terminated any services. Top management carried out direct talk with the dealers, listen to their problems and provide the solution. (c) Share Holders Unlike others, PTL does not succumb to the temptation of drifting away into other business or putting with borrowed funds. It prefers to pay the dividend to the shareholders which has been increased from 250% last year to 260% this year.

2.

PTL has highest operating margins. This can be attributed to its R & D efforts and efficient manufacturing system. These coupled with efficient vendor managed could be termed as the tangible side of the business.

3. 4.

PTL boasts of Indias first totally indigenous tractor industry with 98% of the products developed internally. Another strength of PTL is its efficient vendorisation. It has now transferred even tricky component such as hydraulic control valves, gears (transmission and differential), shafts, crown wheels and tail pinions to its vendors. This has enabled the company to expand efficiently at low capital costs.

(D)

Human Resource Strengths

The current manpower costs less than 4 % of sales. This is attractive as against the industry average of 10.3%. There is an essence of commitment among the employees. PTL has best of top management talents in the form of Mr. Chander Mohan and Mr. Yash Mahajan. Mr. Yash Mahajan (the current Managing Director of PTL) has the credit of building a strong management team and a formidable middle management.

WEAKNESSES .

1. Production Capacity The production capacity does not match the sales potential. Continuous efforts are being made to increase the capacity. Success has been achieved and this year it has achieved the target of 50,700 tractors. 2. Lack of Good Market Share in East and South PTL share has good market share in northern belt. PTL still has to establish itself in east and south. PTL covers east and south through its 33 and 49 dealers respectively. It is still to improve in these sectors.

OPPORTUNITIES
1. Potential is the domestic market is large because India is a agricultural country and 70% of its population is in rural areas out of which 63% of the population derive their livelihood from agriculture. Thus the opportunities for Swaraj Tractors are large in the domestic sectors.

THREATS
1. The major threat to PTL is from the new tractor manufacturers especially the foreign players like New Holland. They are likely to up their in the upper segment that is in the higher H.P. tractors. People tend to buy the higher H.P. tractors just to maintain their standard of living.

OBJECTIVE OF THE RESEARCH

1. 2. 3.

To see the impact of infrastructure of the tractor dealer on the sales. Level of importance of different aspects of infrastructure. What is the nature and degree of correlation between the infrastructure of tractor dealer and sales of tractors?

RESEARCH METHODOLOGY
The search for knowledge through objectives and systematic method of finding solution to a problem is research.

RESERCH DESIGN
In research methodology there use Descriptive research design

PRIMARY DATA
The primary data is the data gathered for a specific purpose or specific research report. I have collected primary data with help of questionnaires from the Dealers.

SECONDARY DATA
The secondary data is the data, which already exists & was collected for some other purpose. The secondary data I have used in my research report is collected from the business magazines, journals & websites of trade organizations.

SAMPLING DESIGN
The first step in developing any sample design is to clearly define the set of objects, as my study is Descriptive research design, the sampling design includes three decisions i.e. sampling unit, Sample size & Sampling procedure.

SAMPLING UNIT
In this research report, the sampling unit includes the data collection of Dealers of tractors.

SAMPLING SIZE
The sample size of my research is 40 dealers.

AREA OF SURVEY

PATIALA, MOHALI, ROPAR,CHANDIGARH

Table1. Status of the Showroom

Self Owned Rented

Number 25 15

Percentage 62.5 37.5

Sample Size = 40

Interpretation: Out of 40 dealers, 25 dealers have their own showroom, which is 62.5 percent of total, and rest have Taken on rent which is 37.5 percent.

Table 2. Size of Showroom

Tractor Dealer Swaraj H.M.T Tafe Eicher John Deer Farmtrac Same Greaves Sonalia

Showroom Size (in sq. Feet) 1100 950 850 1400 1200 1700 580 650

Average size of the showroom in Patiala, Ropar, Mohali,chandigarh is 632 sq. Ft Sample Size = 40

Size of the showroom

1600

1500
1400

1200

1200 1000

Showroom size (in sq ft)

1000

800

600

500
400

250
200

225

180

200

0 sw araj H.M.T Tafe Eicher John Deer Farm trac Same Sonalika Greaves

Tractor De aler

Table 3. Condition for showroom.

Condition Separate tractor display Separate cabin for manager Separate cabin for proprietor

No.of dealer satisfy the condition 40 20 10

Percentage 100 50 25

Sample Size = 40 Interpretation: there are few condition for showroom . out of 100 percent, 100 percent satisfy the seprate tractor display, 50percent have separate cabin for manager and only 25 percent have separate cabin for proprietor.

Table 4.

Area of Tractor display

Tractor Dealer H.M.T Swaraj Tafe Eicher John Deer Farmtrac Same Greaves Sonalika

Area ( in sq ft ) 250 250 550 200 500 500 150 225

Represented in graph

600 500 400 300 200 100 0 Area ( in sq ft ) H.M.T Swaraj Tafe Eicher John Deer Farmtrac Same Greaves Sonalika

Table 5. Size of the Workshop

Tractor Dealer H.M.T Swaraj Tafe Eicher John Deer Farmtrac Same Greaves Sonalika

Ave.Workshop Size (in sq. Ft) 400 550 300 1000 600 1000 100 200

Sample Size = 40 Interpretation: every showroom must have there own workshop.size of different work shop is given above.Average size of the workshop in Patiala, Ropar, Mohali is 520 sq. Ft

Size of the Workshop

1200

1000

1000

1000

Workshop Size (in sq ft)

800

600

600 550 400 300

400

200

200 100

0 H.M.T Swaraj Tafe Eicher John Deer Farmtrac Same Greaves Sonalika

Tractor Dealer

Table 6.

Condition of the Workshop

Condition

No. Of dealer satisfy the condition 25 40 40 35

Percentage

Washing arrangement Special Tools Spare parts store Instruction Charts

62.5 100 100 87.5

Sample Size = 40

Table 7.

how much money required for Investment

in Tractorss dealership.

Tractor Dealer H.M.T Swaraj Tafe Eicher John Deer Farmtrac Same Greaves Sonalika

Investment(in lac) 25 65 15 25 60 57 15 45

Average investment in tractor in Patiala, Ropar, Mohali,Chandigarh is 38.3 lac

Investment in Tractors

57 15 60 45

25 15 65

25

H.MT

Swaraj

Tafe

Eicher

John Deer

Farmtrac

Same Greaves

Sonalika

Table 8. Investment in Spare Part

Tractor Dealer Swaraj H.M.T Tafe Eicher John Deer Farmtrac Same Greaves Sonalika

Investment(in lac ) 6 5 2 4 5 10 1 2

Average investment in spare parts in Patiala, Ropar, Mohali is 4.3 lac

Investment in Spare Parts

10

2 5 4

swaraj John Deer

h.m.t Farmtrac

Tafe Same Greaves

Eicher Sonalika

Table 9

No of Manager and salesman each tractor dealer have

Tractor Dealer Swaraj Tafe Eichor Johndeer Farmtrac Same Greaves Sonalika H.M.T

No of Managers 2 2 2 2 2 1 2 2

No of salesman Total 6 3 3 1 8 1 2 5 8 5 5 3 10 2 4 7

Average number of Manager to each dealer has two Average number of each dealer has 4 salesmen

Table 10.

Market share of each tractor dealer for the year april 2008 to march 2009

Tractor dealor H.M.T Swaraj Tafe Eicher John Deer Farmtrac Sonalica Same Greaves

Sales(in numbers) 159 259 30 49 135 253 25 21

Market share in Patiala dist. 17.08 27.82 3.22 5.26 14.50 27.18 2.69 2.26

Total number of tractors sold in Patiala, Ropar, Mohali,chandigarh for the year 200809 was 931 Average number of tractor sold by each dealer was 116

Market Share of each tractor dealer for the year 2007-08

Patiala, Ropar & Mohali

2008-09
2.69 2.26 27.18 17.08 H.M.T Swaraj Tafe Eicher John Deer 27.82 14.5 5.26 3.22 Farmtrac Sonalika Same Greaves

Sales of each Tractor dealer in year 2008-09

300

Patiala, Ropar & 2008-09 For the Year Mohali

259 253

250

200

159

Slaes ( in no.) 150

135

100

50 30

49 25

21

0 H.M .T Sw araj Tafe Eicher John Deer Farm trac Sonalika Sam e Greaves

Tractor dealer

Table 11.

Market share of each tractor dealer for the year april 2009 to march 2010

Tractor dealor H.M.T Swaraj Tafe Eicher John deer Farmtrac Sonalika Same Greaves

Sales (in number ) 140 211 22 39 120 256 40 8

Market share ( % ) 16.74 25.23 2.63 4.66 14.35 30.62 4.78 0.95

Total no. Of tractor sold for the year 2009-10 is 836 Average number of Tractor sold by dealer is 104.5

Market share of each dealer in year 2009- 10

Patiala, Ropar Mohali,chandigarh

4.78 0.95 16.74

30.62

25.23

14.35

4.66

2.63

H.M.T

Sw araj

Tafe

Eicher

John Dee r

Farm trac

Sonalika

Sam e Greaves

Sales of each tractor dealer in year 2009-10

300

250 211 200

Patiala, Ropar & 256 Mohali,chandigarh

Sales ( in No.)

150

140 120

100

50 22

39

40 8

0
H.M.T Sw araj Tafe Eicher John Deer Farmtrac Sonalika Sam e Greaves

Tractor Dealer

To see the correlation between the showroom size and sales

Tractor Dealer H.M.T Swaraj Eicher Tafe John Deer Farmtrac Same Greaves Sonalika Sales (Avg.) 150 235 44 26 128 255 15 33 R1 6 7 4 2 5 8 1 3 Showroom size in sq ft 500 250 1200 225 1000 1500 180 200 R2 5 4 7 3 6 8 1 2 D2 = (R1-R2) 1 9 9 1 1 0 0 1 22

Rank Correlation r = 1- 6 D2 N3 - N = 1 - 622 83 8 = 1 - 132 504 = 1 - 0.26 = 0.74

To check the correlation between sales and workshop size

Tractor Dealer Sales R1 Workshop size R2 D2 = (R1-R2)

H.M.T Swaraj Eicher Tafe John Deer Farmtrac Same Greaves Sonalika

(Avg.) 150 235 44 26 128 255 15 33

6 7 4 2 5 8 1 3

in sq ft 400 550 1000 300 600 1000 100 200

4 5 7.5 3 6 7.5 1 2

4 4 12.25 1 1 0.25 0 1 23.50

r = 1 6 [ D2 + 1/12 (m3 m) ] N3 N = 1 6 [ 23.5 + 1/12 (2 3 2) ] 83 8 = 1 6 [23.5 + 0.5] 512 8 = 1- 6 24 504 = 1 0.28 = 0.72

To see the correlation between the sales and the investment in tractor and spares
Tractor Dealer Sales (Avg.) R1 Investment in tractor & spares R2 D2 = (R1-R2))

H.M.T Swaraj Eicher Tafe John Deer Farmtrac Same Greaves Sonalika

150 235 44 26 128 255 15 33

6 7 4 2 5 8 1 3

25 + 5 = 30 65 + 5 = 70 25 + 4 = 29 15 + 2 = 17 60 + 5 = 65 57 + 10 =67 15 + 1 =16 45 + 2 = 47

4 8 3 2 6 7 1 5

4 1 1 0 1 1 0 4 11

r = 1 6 D2 N3 N = 1 6 11 83 8 =1 66 512 8 = 1 0.13 = 0.87

To see the correlation between the sales and Tractor display area
Sales H.M.T Swaraj Eicher Tafe John Deer Farmtrac Same Greaves Sonalika (Avg.) 150 235 44 26 128 255 15 33 R1 6 7 4 2 5 8 1 3 Tractor display Area (in sq ft.) 250 250 100 750 500 500 50 225 R2 4.5 4.5 2 8 6.5 6.5 1 3 D2 = (R1-R2) 2.25 6.25 4 36 2.25 2.25 0 0 53

Rank correlation r = 1 6 [ D2 + 1/12 (m3 m) + 1/12 (m3 m) ] N3 N = 1 6 [53 + 1/12 (23 2) + 1/12 (23 2)] 83 8 = 1 6 [53 + 0.5 + 0.5] 512 8 = 1 6 54 504 = 1 0.64 = 0.36

To see the correlation between the Sales and Sale Staff

Sales Mahindra & Mahindra Swaraj Eicher Tafe John Deer Farmtrac Same Greaves Sonalika (Avg.) 150 235 44 26 128 255 15 33 R1 6 7 4 2 5 8 1 3 Sale Staff 6 7 4 3 2 9 1 1 R2 6 7 5 4 3 8 1.5 1.5 D2 = (R1-R2) 0 0 1 4 4 0 0.25 2.25 11.50

Rank correlation r = 1 6 [ D2 + 1/12 (m3 m) ] N3 N

= 1 6 [11.5 + 1/12 (23 2) ] 83 8 = 1 6 [ 11.5 + 0.5 ] 512 8 = 1 6 12 504 = 1 0.14 = 0.86

To check the correlation between the sales Managerial Staff

Tractor Dealer H.M.T Swaraj Eicher Tafe John Deer Farmtrac Same Greaves Sonalika Sales (Avg.) 150 235 44 26 128 255 15 33 R1 6 7 4 2 5 8 1 3 Managerial Staff 2 1 1 1 1 2 1 2 R2 7 3 3 3 3 7 3 7 D2 = (R1-R2) 1 16 1 1 4 1 4 16 44

Rank correlation r = 1 6 [ D2 + 1/12 (m3 m) + 1/12 (m3 m) ] N3 N = 1 6 [44 + 1/12 (53 5) + 1/12 (53 5)] 83 8 = 1 6 [ 44 + 10 + 2 ] 512 8

= 1 6 56 504 = 1 0.66 = 0.33

ANALYSIS
Analysis the outcome of the survey conducted. The first and foremost thing that become clear is that Mahindra & Mahindra and Swaraj are enjoying the top position in the tractor industry . They are having the market share of 34.3% and 18.3% respectively. So, it is clear that Swaraj is at the second position. Regarding the dealers infrastructure it is clear that infrastructure do effect the sales .

The effect of the different area has been analysed using rank correlation method . The highest is the correlation , it has the more relationship with the sales , i.e. it effects the sales . The least is the correlation , it has no effect on sales . It is found that the highest impact on sales is the investment in tractor and spares by tractor dealer . It has the correlation of 0.87 After the investment the second comes sale staff with the correlation of 0.86 After that sales depand upon the showroom size with the correlation of 0.74

After that sales depands upon the size of workshop with the correlation of 0.72 After sales is effected by tractor display area with the correlation of 0.36 After sales is effected by managerial staff with the correlation of 0.33 After that the least factor which effects the sales is condition of showroom with the correlation of 0.19

CONCLUSION

The factor which are considered important for good infrastructure are given below :1. 2. 3. 4. 5. Investment in tractor and spares. Availability of sales staff and service staff. Size of showroom. Size of the workshop. Display area of tractor.

The above factors are in the ordered of preference. So, the dealer should develop the infrastructure in the above order to give a boost to their sales.

BIBLIOGRAPHY Books:1.

MARKETING MANAGEMENT - PHILIP KOTLER 2. STATICAL METHODS - S.P GUPTA 3. RESEARCH METHODOLOGY - C.R KOTHARI

Websites:4. http://www.swarajenterprise.com/ 5. http://www.ruf.rice.edu/~bioslabs/tools/report/reportfor

m.html

6. http://www.tractordata.com/farm-tractors/tractor-

brands/swaraj/swaraj-tractors.html
7. http://automobiles.indiabizclub.com/info/automobile_typ

es/tractors
8. http://en.wikipedia.org/wiki/Tractors_in_India

1. What is your name and from how many years you have been in this business. 2. Is this showroom is on rent. 3. IS there workshop facility, if yes then What is the size of the workshop. 4. what is the size of tractor display platform. 5. how many managers and sellsman do you have. 6. how much fund is required for dealership. 7.how much fund is required for spare parts. 8.do you have separate cabin for managers and proprietor. 9.do you provide loan facility. 10.how many tractor you sold in 2008 and 2009.