PTL takeover spreads cheer among workers

The employees of Punjab Tractors Ltd (PTL), especially workers are delighted at the acquisition of the controlling stake in the company by Mahindra and Mahindra (M&M). The leading tractor company yesterday purchased the stakes of Actis (14.5 per cent) and Burman family(29 per cent).

The employees told Business Standard that the deal would bring PTL back on the fast track, which was once the number two player in India. While the workers are upbeat over the deal, apprehensions are, the axe might fall on higher management.

Speaking to Business Standard, one of the employees said, " We are glad that the stake has been bought by an aggressive player and market leader like M & M. We hope that the volumes would grow in near future thus giving us more stability."

Currently, PTL produces 24,000 tractors a year,and employs around 1400-1500 people. Out of the workforce, around 1000-1100 (in two shifts) are in engaged in production while about 400 people are in the management team, sources say.

Another worker who is in late 40's said, " About 3-4 months back, we were doubtful about the future, as we thought that this company would also meet the same fate as others( many big units have closed operation in past), but M & M has secured our future as it would put PTL on fast track."

He added that the earlier stakeholders were venture capitalists, lacking futuristic vision, and had no background of tractor business, but the entry of M & M will give PTL, a new dimension to its business.

While the workers are upbeat over the development, the higher officials are tightlipped and refused to comment.

Apprehensions are that the axe might fall on higher management as according to sources, it is over staffed.

Mahindra & Mahindra is expected to pose a major threat to regional tractor manufacturers like Hoshiarpur-based International Tractor Ltd which manufactures Sonalika brand tractors, Baddi-based Indo farm Tractors and Pinjore-based HMT Tractors.

Mahindra & Mahindra is also expected to command a major share in the market, as in Punjab and Haryana alone, there is demand of about 38, 000 tractors a year. Before the deal, PTL has a market share of 13.5 per cent and M&M cornered 11.8 per cent in the states of Punjab and Haryana.