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Volume 2, Number 1, January-March 2013 ISSN (P):2279-0918, (O):2279-0926

International Journal of Entrepreneurship & Business Environment Perspectives Pezzottaite Journals 350 | P a g e

A CASE STUDY OF TRACTOR QUEEN OF INDIA: THE MALLIKA SRINIVASAN

Aathira K.1 R. Shanthi2

ABSTRACT

In most sectors and industries across the globe, it is seen that 65% to 75% of the business ownership or company management

lies with men. However, there is increasing evidence that more and more women are becoming interested in small business

ownership. Meanwhile, some previous researches had suggested that it is more difficult for women to start a business and

raise business finance than men and that those women are more likely to encounter credibility problems when dealing with

bankers (Carter and Cannon, 1992).

KEYWORDS

Women, Leadership, Women Entrepreneurs, Development, Economic Conditions, Empowerment, Social Conditions,

Literacy, Education etc.

INTRODUCTION

One such case study is of one of the best known women entrepreneur in India, analyzing the success factors which make her

unique. The framework of the study follows the concept of entrepreneurships, common characteristics associated with

entrepreneurs, and the success factors that make women entrepreneurship unique. The results suggest that family support,

dynamic personality and social ties, educational background impact positively and significantly to the success of women

entrepreneurs.

RESEARCH METHODOLOGY

The methodology adopted for this case study involved using the information available in featured articles from The Hindu,

Business standard, Economic Times, company website and video of NDTV interview etc. The author has compiled the sources for

the case study.

BACKGROUND OF CASE

Malia Srinivasan - A leader and strategist, recognized for professionalism, commitment to excellence and contribution to Indian

industry and academia. When she had taken over the responsibility of expanding the wealth and business of TAFE, the turnover

of the company was just Rs 85 Cr. and today, under the expert guidance of her father and the whole hearted support of the team,

she has brought about a major transformation. She converted TAFE into a high technology-oriented company, thereby becoming

the initial choice of the farmers.

During her initial stint with the company, though her designation was impressive, she was not given any job description, and was

merely told to find out what she could do. Her office was a partitioned space in one of the TAFE building's corridors. And while

some employees were welcoming, others were very skeptical. 'Let's see how long she lasts,' was their attitude. She promptly got

down to business, holding discussions with other employees, trying to see where she could add value. "It was a great induction

where only the fittest would survive," she says, and in a few years, she had a complete grip on the business. She always fully

immersed in her work, rattling off figures and projections and plans, amid giving instructions to her employees.

Her biggest coup so far was the acquisition of Eicher Motors in 2005, the move that catapulted TAFE into the No. 2 slot in the

country. "Many conservatives in the company were very surprised by the bold move."The downturn happened in 2000, when

TAFE, like all tractor companies, was badly hit. Its sales fell from 49,000 to 24,000 tractors a year. But Mrs. Srinivasan turned the

setback into an opportunity by investing heavily in research and development, and launching new products. In the period of

testing times, her decision to invest Rs. 70 Cr. in product designing and development helped the company sail through. TAFE

introduced new models of tractors and other farm equipment almost annually, just as the car companies do. Additionally, she

focused on re-engineering its processes and invested heavily in enterprise resource planning. And it paid off. Revenues increased

from less than US $20 million in 1986 to US $660 million in 2006.

In family businesses people will pay a lot of attention to sustainability and will also search for opportunities. But most

importantly, it is imperative to be happy with what one is doing. To be an achiever she cherishes her family and community

values, and achieves a balance between work and home. It is no wonder that she is held as a role model for women achievers

around the world. In a span of 25 years, Mrs. Srinivasan has steadily built this enterprise into becoming the worlds 3rd largest Tractor manufacturer, the countrys largest exporter of tractors and the most profitable tractor manufacturer in the world. TAFE's turnover, from a mere Rs86 Cr. in 1985 in the year she joined, had risen to Rs5,800 Cr. by 2010/11, making it the second biggest

tractor company in India after Mahindra Tractors .Since then she has risen to become India's tractor woman making an indelible

1Research Scholar, University of Madars, Department of Commerce, Maharashtra, India, [email protected] 2Assistant Professor, Department of Commerce, University of Mumbai, Maharashtra, India, [email protected]



impression in a heavily male-dominated industry. From around 4,000 tractors a year in 1985, the group now manufactures

120,000 annually.

OUTLOOK OF THE COMPANY

Tractors and Farm Equipment Limited (TAFE), is a US$1.6 billion tractor major incorporated in 1960 at Chennai, India, and is

the third largest tractor manufacturer in the world and the second largest in India by volume. TAFE yields 24% market share of

the domestic tractor industry, with a sale of over 148,000 tractors (domestic and international) for the year 2011-12. TAFE's

partnership with AGCO Corporation and the Massey Ferguson brand for 52 years is the first in the tractor industry.

TAFE is a member of the Amalgamations Group of Chennai. The company has four plants involved in tractor manufacturing at

Mandidheep (Bhopal), Kallidaipatti (Madurai), and Doddabalbur (Bangalore) and in Chennai. They also have a diverse interests

in diesel engines, tractors and related farm machinery, automobile components, lubricants, panel instruments, hydraulic pumps,

engineering tools, storage batteries, paints, engineering plastics, automobile franchises and printing apart from interests in

agribusiness, book selling and publishing. The leadership technology of this Group is based on foreign method. TAFE exports to

over 77 countries, including developed countries in Europe and the Americas. Besides tractors, TAFE and its subsidiaries have

diverse business interests in areas such as diesel engines, batteries, transmission components, panel instruments, engineering

plastics, hydraulic pumps and cylinders, passenger vehicle distribution and plantations.

COMMON FACTORS OF SUCCESSFUL ENTREPRENEURS

Many small business owners are motivated to start a business on the basis of lifestyle or personal factors. The most important

factors that drive small business owners to success include: (Kao, 1991):

a. Total commitment, determination, and perseverance, b. Drive to achieve and grow, c. Opportunity and goal orientation, d. Persistent problem solving, e. Taking initiative and personal responsibility, f. Realism and a sense of humor, g. Seeking and using feedback, h. Internal locus of control, i. Calculated risk taking and risk seeking, j. Low need for status and power, k. Integrity and reliability.

CHALLENGES FACED BY WOMEN ENTREPRENEURS

The main problem faced by women entrepreneur is maintaining a balance between home and work. The women entrepreneurs

also have difficulties in accessing premises due to, among other factors, a lack of property and inheritance rights and their lack of

access to titled assets that can be offered as collateral for loans adversely affects the growth of their enterprises5. It was vitally

accepted and recognized fact that women entrepreneurs are facing numerous problems.

According to Venzs (1987) problems are classified into formulation-specific, implementation specific and operation specific perspectives. There is discrimination against women in India despite constitutional equality. Women do not get equal treatment in male-dominated Indian society and male ego puts barriers in their progress. The other hindering external factors

include gender discrimination, inaccessibility to information, training opportunities, infrastructure etc. Some internal factors like

risk aversion by women, lack of confidence, lack of vision of strategic leader etc. can also create obstacles for the women

entrepreneurship Development1.

TYPES OF WOMEN ENTREPRENEURS IN INDIA

Based on the information available from preserve article.com the Indian women entrepreneurs are broadly classified into

following ways.

Affluent Entrepreneurs

Affluent women entrepreneurs are that women entrepreneur who hails from rich business families. They are the daughters,

daughter-in laws, sisters, sister-in-laws and wives of affluent people in the society. Many of them are engaged in beauty parlour,

interior decoration, book publishing, film distribution and the like. The family supports the above type of entrepreneur in carrying

out their responsibilities.

Pull Factors

Women in towns and cities take up entrepreneurship as a challenge to do something new and to be economically independent.

These are coming under the category of pull factors. They belong to educated women who generally lake up small and medium



industries where risk is low. Under this category, women usually start service centers schools, food catering centers, restaurants,

grocery shops etc.

Push Factors

There are some women entrepreneurs who accept entrepreneurial activities to overcome financial difficulties. The family situation

forces them either to develop the existing family business or to start new ventures to improve the economic conditions of the

family. Such categories of entrepreneurs are termed as push factors.

Self-Employed Entrepreneur

Poor and very poor women in villages and town rely heavily on their own efforts for sustenance. They start tiny and Small

enterprises like brooms making, wax candle making, providing tea and coffee to offices, ironing of clothes knitting work, tailoring

firm etc. Such women are called self-employed entrepreneurs.

Rural Entrepreneurs

Women in rural areas/villages start enterprises which needs least organizing skill and less risk. Dairy products, pickles, fruit

juices, pappads and jagger making are coming under this category of rural entrepreneur.

SUCCESS MANTRA FOR A WOMEN ENTREPRENEUR

Competencies

Modern farm-equipment venture are rooted in traditional values. While scarcity of labor and the consequent increase in wage rates

has persuaded farmers to opt for mechanization, taking advantage over the issue the women entrepreneur make use of the

opportunities by applying strategy. It is a kind of impatience and hustle that takes a business from being quite average to being the

best in its field.

Unique Perspectives

In a case of tractor industry if farmers has a good crop, and support prices are also good, there would be purchasing power. And if

the rain picks up, there would be lesser adverse impact on the industry. Timely evaluation capacity of women entrepreneur on any

situation makes a difference.

Dynamic Personality

Live participation and persuasion of objectives actively and energetically will sharpen the skill. Dynamic thinkers have a sharp

eye for errors and can criticize without mercy if they see the success of a project endangered. The extroverted part of personality

provides excellent communication capabilities plus a certain charisma, making it easy to engage other people with specific

objectives. The women entrepreneur should possess commanding capacity along with friendliness to make others perform well.

Healthy Interpersonal Relationship

The employees are encouraged by a well defined performance appraisal program that enables open interaction between the

employee and the immediate superior and serves as a platform for not just measuring performance but also for recording

performance levels, analyzing short falls and relating them to competency gaps either in the technical or managerial skills area. A

difficult task for women entrepreneur is bringing everything under single umbrella, for this a team effort with complete

coordination is necessary.

Freedom for Professional Choice

The freedom in selecting a profession reflects in passion to do anything to attain a particular task and this prompts people to work

hard and achieve goal with full professional satisfaction. Many entrepreneurs are struggling to choose their own interesting field.

Mostly they are forced to flatter their roles under the shade of male owned companies.

Knowledge and Administration Capacity

Its not an easy task for women to manage all office works smoothly and efficiently on time. Here, her education and her fathers support give her a platform to perform well in this field. Lack of knowledge and communication skill endangers the survival.

Social Network

People cannot become your customers without knowing your business exists!-Crissy Heron (Founder of IndieBizChicks.com). Either through business network or through media network an entrepreneur has to make a link with the people.



TAFES SUCCESS MANTRA

Companies Strive for a Broader Social Purpose

TAFE is involved in the areas of education and health care through the Amalgamations group charities. It is also directly involved

in this area through partnering with other NGOs such as the Tamil Nadu Kidney Research Foundation.

Research and Development

The company is focused in product research and development to come up with goods and services that meet the needs of

tomorrow's customers, which paid them well even when other companies find fall in same year. This is a kind of conversion of

market information into products. The company is staffed with over 300 specialist engineers.

On Specialized Applications

The Company has found its own models. The reason behind buying smaller compact tractors from Gujarat, the Captain tractors,

was that it was being used for special purpose applications in Maharashtra and Gujarat. In pockets such as vineyards or groundnut

areas, which need less tillage or in inter-cultivation, they need lighter and small machines.

Innovation

It is not only the technology industry that welcomes innovation but also the farming sector. Farming sector requires advanced cost

effective products for their field. The industry should bring more innovative products which can meet customer needs and add

value to them.

Attention to Sustainability

Sustainability refers to development that meets the needs of the present without compromising the ability of future generations to

meet their own needs. The concerned industry should be aware of the sustainability of its product. In the case of tractors, they can

be made sustainable by using alternative fuels and liquids foe engine, transmission and hydraulics to protect the environment.

Application of IT:

IT investments have been made in digitalizing operations. Sales processes and structures are streamlined and IT has transformed

the company in due course.

Timely Up gradation:

Once demand is created or identified, companies gets under pressure to expand its production capacity through additional

investments in infrastructure, vendor up gradation, adoption of technology, merger and acquisition etc. Delay in any area will

ultimately affect the company.

STRATEGY

Product Diversification

TAFE offers harvesting equipment, agro, auto, genet, and silent engines; auto components, including transmission gears and

shafts, transmission housings, crown wheel pinions, and cam shafts; injection molded engineering plastics and pressure die-

castings; and accessories and implements, which include spring tillers, disc ploughs, front end loaders, heavy duty tillers, mould

board ploughs, offset disc harrows, rigid tine cultivators, rotary tillers, sub soilers, terracer blades, tipping/non tipping trailers, and

tractor-front mounted levelers.

Custom Built Products and Services

TAFE caters to a range of institutional, private, and government customers, such as telecom, petrol pumps, government

departments, banks, nursing homes, and various industries. Because of this strategy, failure in a particular product or down turn in

particular area can be set off by other products.

Sharp Decision Making Capacity

Decision making is based on some facts. For example, tractor industry is highly influenced by monsoon and price factor. Because

the target group is farmers, they are considered to be low income leverage groups. The success mainly lies in the sharpness in

decision making to stabilize the sales even in bad times. CARE Research believes that a healthy growth in agriculture will drive tractor demand. Hence, tractor sales will be highly dependent on a good monsoon.4



Tap With Economic Changes

Structural changes in the farm sector, such as shortage of labour and easy access to credit, would lead to more mechanization

which can be considered as an opportunity for business. But at the same time, the support price, subsidy and government policies

might affect demand.

Table-1: Success factors which differentiate Malliaka Srinivasan from other Women Entrepreneurs

Sources: Authors Compilation

The tractor queen inherently possessed wealth and knowledge and above all full family support that played major role and also

her will power, skill and sharpness in analyzing the market made her differ from other entrepreneurs.

CONCLUSIONS

It is clearly understood that women seek fair treatment and improved compensation, and that these desires motivates them to

move from management to entrepreneurship. Womens entrepreneurship can make a particularly strong contribution to the economic well-being of the family and communities, poverty reduction and womens empowerment. Nothing is impossible if the women have a desire to win. And it is this success mantra that we have learnt from the Tractor queen of India. Despite of all odds,

women entrepreneurs do exist revealing the truth that they are more acquiring than their male counterparts.

REFERENCES

1. Bhardwaj, Parashar, & Pandey. (2011). Women entrepreneurs in India: opportunities and challenges. Buddhik: The Journal of Management, 2(1).

2. Buttner, (2001). Examining female entrepreneurs management styles: An application of a relational frame. Journal of Business Ethics, 29, 253-269.

3. Carter, S., & Cannon, T. (1992). Women as Entrepreneurs, London: Academic Press.

4. (2012, February). ICRA (Tractor industry report).

5. (2008, March). ILO strategy on womens entrepreneurship development (Report No. G.B301/ESP4). ILO: Geneva.

6. Kao, J. J. (1991). The Entrepreneur. PrenticeHall.

7. Vinze. (1987). Women Entrepreneurs in India: A Socio-Economic Study of Delhi - 1975-76. New Delhi: Mittal Publications.

8. Retrieved from www.investing.businessweek.com

9. Retrieved from www.hindu.com

10. Retrieved from www.business-standard.com

11. Retrieved from www.businesstoday.in

12. Retrieved from www.sparks.wisdomjobs.com

13. Retrieved from www.preservearticles.com

14. Retrieved from www.tafe.com

*****

Factors Women Entrepreneurs Tractor Queen

Industry Finance, Medical, Telefilm etc. Manufacturing

Start-up finance Beyond the scope of most womens personal assets and credit track record.

Affluent Entrepreneur

Business New business Family owned Business (Existing)

Industry Size Small Multinational

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