M&M mulls revamp of Punjab Tractors

Punjab tractors Limited (PTL), the company in which Mahindra and Mahindra (M&M) had recently acquired a 43.5 per cent stake may be heading for a revamp.

A high profile team of M&M vice-chairman Anand Mahindra, is likely to visit Chandigarh on April 5 to get a feel on how to turnaround the ailing unit. The team is likely to visit the manufacturing bases of PTL at Mohali, Chapperchari and Nabha.

According to sources, the Mahindra group might upgrade the machinery and focus on man-power training as a part of its restructuring programme.

Punjab Tractors Limited, once a bluechip company lost its market share due to lack of direction.

The profits were not reinvested into the upgradation of machinery, training of man-power and marketing that led to a loss in market share of a once strong brand.

According to a senior company official, Mahindra group wants to synergise with PTL to secure a larger market share with optimum utilisation of available sources. "We are going to work as partners and not as a promoter" he said.

The Punjab Tractors for the time being has scaled down the production in order to clear the old commitments, said one of the suppliers.

The dealers and suppliers are sanguine over Mahindra's participation in Punjab Tractors.

It is expected that no major changes in higher management would be introduced and the marketing and R&D supportprovided by Mahindra would suffice for the revival of Punjab Tractors.