COMPANY PROFILE

TRACTOR AND FARM EQUIPMENT LTD

Tractors and Farm Equipment Limited (TAFE), a US $1.6 billion tractor major incorporated in

1960 at Chennai, India, is the third largest tractor manufacturer in the world and the second

largest in India by volumes, with a 25% market share of the Indian tractor industry and a sale of

approximately 148,000 tractors (domestic and international) annually. TAFE's partnership with

AGCO Corporation and the Massey Ferguson brand for 52 years is an outstanding example of

TAFE's commitment to its values of building long-term relationships with its stakeholders,

through fair and ethical business practices.

HISTORY OF THE COMPANY

The Amalgamations Group entered the tractor business in 1960. Simpson & Company was

already making Perkins Diesel Engines and the founder chairman of the group, Mr.

Anantharamakrishnan's own great interest in agriculture and the Green Revolution in making,

made the group grab the opportunity to make tractors when it presented itself.

Standard Motor Products of India Limited had been assembling Massey Ferguson tractors in

India for Massey Ferguson India, which was a Bangalore based company handling the entire

MF business in India. Massey Ferguson was looking for a company that would, in a phased

manner, manufacture its tractors in India and successful negotiations with The Amalgamations

Group lead to the group taking over the Bangalore operations and moving it to Chennai, then

Madras. The new company was called Tractors and Farm Equipment Limited.

On December 15, 1960, Mr. S. Anantharamakrishnan announced at a press conference at

Chennai, his plans to manufacture tractors and implements at Simpson's Industrial Estate in

collaboration with Massey Ferguson of Toronto. At that time, the estimated demand for tractors

in India was 12000 tractors per year and TAFE was allocated a capacity of 7000 tractors a year.

Initially 50% of the tractor was built with indigenous content but within two years this rose to

85%. From these early beginnings, we are proud to have risen to a turnover of US $1.6 billion

and a sale of over 148,000 tractors (domestic and international) in the year 2011-2012, apart

from the distinction of being India's largest exporter of tractors consecutively for the last three

years.

VISION The philosophy that drives TAFE was first enunciated by its CMD in 1992. "To us in TAFE,

Excellence is not something that we engineer, inspect and input into our tractors. It is an innate

desire to attain the best that comes from within each of us. It defines our lives at work and at

home and ripples out into the world around us". (Source: Corporate Film-1992).

This inspired TAFE to evolve its Vision & Values in 1999, through a company-wide

participative exercise with external facilitation from IIM, Bangalore. The Vision &Values

statement captures key elements of TAFE's culture, strengths and aspirations. Subsequently,

Warwick Manufacturing Group (WMG), UK, facilitated each element of the V&V being linked

to CSFs of the company to translate 'Vision' to 'Reality' through a Vision to Reality Plan (VTRP)

that forms basis of the company's Business Plan.

To achieve the distinction of the first choice among the farming community of India and

ensuring a growing presence in international markets through setting leadership standards

of performance and customer care in the agricultural machinery business.

MISSION

” People involvement at all levels has improved tremendously and there is a noticeable cultural

change. Renoir Processes especially SCG & MAT meetings and Short Interval Control at

Supervisory levels have resulted in the achievements for all the KPIs defined. The Information

Flow has clearly streamlined and I get the consolidated reports for review on my desk daily. ”

“The experience of working with the Top Gear project by Renoir was an unforgettable

unlearning and learning curve in all interactions. It gave me an insight to unearth improvement

opportunities and opened myself to change thoughts and actions.”

QALITY POLICY

TAFE's thrust on total quality is organization wide and is aimed at ensuring we as a corporate

entity set the industry benchmarks for the quality of both products and services. Japanese quality

management systems/ tools such as 5S, Kanban, Kaizen and Six Sigma find wide application in

the company. TAFE pioneered the quality circle movement in the tractor industry and has over

fifty quality circles in place.

TAFE is an ISO 9001, ISO 14001 and ISO 27001 Certified Company

The focus on Total Quality Management, upgrading Vendor Quality and productivity and

strategic tie-ups with quality management specialists from Japan and the change management

exercise facilitated by the Warwick Management Group has paid rich dividends in terms of more

cost effective operations as well as being acknowledged by customers as manufacturers of

quality products.

PRODUCT AND SERVICE MIX

PRODUCTS

MF 9500

MF 9000 DI PLANETERY DRIVE

MF 7250 DI

EICHER 5660

EICHER 485

EICHER 5150

TAFE 30 DI ORCHARD PLUS

MF 1035 DI SHAKTHI

EICHER 312

EICHER 333

DEALERS LOCATED IN TAMIL NADU

S.NO PLACE DEALER NAME

1 Coimbatore Gaayatri Mallaiyan Tracto

2 Cuddalore Sivasakthi Tractors

3 Dharmapuri Sriram Eicher Tractors

4 Erode Supreme Tractors5 Hosur Nandhini Eicher Tractors

6 Kallakurichi Siva Sakthi Motors

7 Kancheepuram Susee Tractor Centre

8 Madurai George Oakes Limited

9 Ocheri Jayam Motors

10 PATTUKOTTAI Sakthi Motors

11 Pondicherry Ganges Tractors

12 Pollachi Ms And Company

13 Thiruvannamalai Om Sakthi Motors

14 Vellore Harvel Tractors & Farm Eq

15 Villupuram Cpc Motors

HARVESTING EQUIPMENT

CRUZER 7504

ACCESSORIES

1. 9-Tine / 11-Tine spring tiller

2. Disc Plough3. Front end loader - Mahaan 52454. Heavy duty tiller5. Mould board plough6. Offset disc harrow7. Rigid tine cultivator8. Rotary tiller9. Subsoiler10.Terracer blade11.Tipping / Non tipping trailer12.Tractor - Front mounted leveler

ENGINES

Eicher Engines is a unit of TAFE Motors and Tractors Limited (TMTL) with Alwar as the

manufacturing base. TMTL is a wholly owned subsidiary of TAFE, part of Chennai based

Amalgamations Group, which is one of India's largest light engineering conglomerates having

long and distinguished history of serving Indian and global markets with a pan Indian presence

of over 40 companies with highly skilled and competent workforce of over 15,000 and business

built on highest standards of integrity, ethics and values.

ENGINE TYPES

AGRO ENGINE

AUTO ENGINE

GENSET ENGINES

SILENT ENGINE

CAPABILITY

MANUFACTURING AND QUALITY

Operating on principles of TQM, TPM, SGA, Kaizen to meet global standards of quality &

productivity.

Awarded National Productivity Council Recognition thrice for productivity performance.

ISO 9001/14001 TS 16949 certification.

Awarded BEST IT USE COMPANY AWARD by NASSCOM.

Pioneers in Air Cooled Technology. Manufactured in Alwar Plant

Hi-Tech plant with CNC Machines

Engine Assembly in Dust Proof Ambience

Stringent Quality Controls & Manufacturing Standards.

EXPORT

With an enviable presence in India, we are now also beginning to expand overseas. Our recent

successful forays into South Asia, have once again proved that our philosophy "Customer first"

shall continue to win the confidence and trust of all global customers.

Our diversified range of Diesel Engines and Diesel Generators, catering to domestic, industrial,

official and Telecom segments has been designed keeping diverse climate, geography and end

usage factors in mind.

Our products offer significantly lower operational costs and are extremely good value for money.

With ISO 9001, ISO 14001 and TS 16949 certifications, a fully operational R&D centre with a

continued Technology Transfer tie up with Ricardo Consulting Engineers, UK and AVL,

Austria, we offer quality that matches the best in the world

R& D CAPABILITIES

Team of more than 40 specialists dedicated to engine development

Online technical support agreement with technology providers such as Ricardo & AVL

Air cooled & water cooled engine technology database

Turbocharged & after cooled engines with latest combustion development tools & after treatment devices for stringent emission controls

Fully networked CAD/CAE environment

3d system/sub-system layout designs

Design verification & optimisation through FEA / inhouse software

Product data management

Formulation of reliability & accelerated endurance test cycles

SOFTWARE

PRO-E & WINDCHILL PDM Link

ACAD ( 2007 REL)

PRO-E & WINDCHILL PDM Link

HYPERWORKS

OPTISTRUCT

ANSIS

DEVELOPMENT PROCESS

Product strategic plan with QFD

Project sensitivity & risk analysis

FMEAS (DFX, DTC & process control plans)

CAE / FEA analysis for design optimization

In house proto development tools

Accelerated endurance & reliability testing & duty cycle simulations

Field validation & feedback

APQP process as per ISO/TS 16949

Integrated environment & quality policy

GEARS AND TRANSMISSIONS

Tafe's gears division is located at kelambakkam near jfarm and has a capacity to produce 40,000

crown wheels and pinions a year. The capacity is essentially used for captive consumption by

tafe’s tractors. The plant has the necessary infrastructure to produce crown wheels and pinions to

the demanding specifications of the application and is equipped with necessary facilities to

ensure quality products that exceed customer expectations.

Tmtl, tafe's wholly owned subsidiary has a gears and transmissions plant at parwanoo that

produces a range of gears and transmission products for captive consumption at tmtl and tafe for

tractors apart from sale to discerning oe buyers in the automotive sector.

Product range

Our product range covers following category of auto components

1.Transmission gears & shafts

2.Transmission housings

3.Crown wheel pinion

4. Cam shaft

Facilities

We have well equipped facilities to produce transmission gears & shafts, gear box housings,

crown wheel pinion & cam shaft, such as

Modular lines for hobbing, shaving, shaping

Heat treatment-gas carburizing & sealed quench.

Grinding-conventional & cnc

Combination of cnc machining centers & spm's

Cnc cam grinding machine

Our facilities to ensure reliability and consistency in quality include in-house cutter

resharpening machine, 3dcmm, cnc in volute tester, cncn cam tester.

Competency

Product related - capability to produce transmission gears & shafts for tractors & commercial

vehicles, gear box housings, crown wheel pinion & cam shaft for tractors.

People related - availability of skilled & trained work force.

System related - unit has well integrated quality system in line with ts requirement.

Unit also has well integrated erp software for production, maintenance, material control &

accounting functions.

ENGINEERING PLASTICS

Engineering Plastics Division (EPD) was created with the realization that engineering design is

seldom, if ever, an end unto itself. Rather, engineers embark on design with the intent of creating

a manufacturable product. We view design as an upstream phase in the multi-stage operation of

manufacturing.

The manufacturability of a design is a measure of how successfully it can be translated from

concept to computer representation and finally, into a high-quality and cost-effective physical

product. A visually perfect design might be impractical to manufacture. Or, minor changes to a

design can result in significantly improved tooling and production efficiency.

While computer-based technologies have made significant strides in simulating tasks of design

and analysis, there has been relatively less progress in validating manufacturability. Manufacture

validation requires sound knowledge in the tooling and production domain, most of which is

developed through years of experience and embedded in the minds of production floor experts,

rather than within computer programs. Validation expertise is also specific to the exact type of

manufacturing process.

Today, the Engineering Plastics Division has a primary focus on manufacturability in injection

molded engineering plastics and pressure die-castings. This is enabled by a close association

with the TAFE-Engineering Plastics Division, a truly state-of-the-art design, engineering and

production facility servicing many of the leading automotive, electronics and appliance suppliers

within the nation. EPD embodies an extensive knowledge in this engineering domain, made

available through years of actual production expertise.

SERVICE

SERVICE SUPPORT

A team of trained professionals coordinates with dealers and authorized service centers to ensure

that the tractors from TAFE are serviced and maintained to ensure long and trouble free service.

To offer immediate technical support a toll free call center exists for customers in India. To meet

emerging needs and improving features of the tractors, we also monitor tractors in the field and

that's an edge under our Service Support System.

In order to ensure service at customer's door steps, a system of mobile service personnel to reach

customers at their site is in place. Further, we ensure that all our dealers are staffed by personnel

trained by us at our product training centre.

Empowering the customer

Customer support at TAFE relates to our most important core value, "Customer Satisfaction"

At TAFE Service our philosophy lies in "Empowering the customer" from whom the business

starts and where it ends. Our whole team of service employees, dealers or service stations

continuously strives to empower the customers in multiple ways so that they not only remain

with us but also become the core driver for our products, policies & services.

Door step installation

Whether our "Door step installation" of practical demo within fortnight of purchase, the drivers

training during our events or the customer education meets, we empower our customers with the

right knowledge to get best out of their tractors. In an industry where the machine is used in the

most remote corners of the country, our benchmark "Service @doorstep" bikes not only provide

home delivery at customers convenience but also save lot of money & time for them.

We empower the customers to realize their extraordinary worth to our business, by constantly

pampering them through our mega & mini service events like a " 5 in 1 " camps. We not only

service the tractor but also do a family health check up to mentally & physically empower them.

Communication

Our customers are empowered to communicate with ease & influence the company by

expressing their views, opinions or suggestions in CSI surveys, direct customer visits, survey

through call centers, 24 hour toll free assistance & contacts numbers displayed at our service

stations and on tractors.

Our service network with over 800 dealer workshops, over 800 service bikes & 400 "Apna Sewa

Kendras" in remote clusters, empower the customers to avail all their tractor service

requirements at their desired place.

TAFE service firmly believes that not only the availability but also the speed of response during

crisis, really empowers the customers. So we strive to reach critical parts, engines & technical

assistance in remotest locations in no time . TAFE service is proud to be more closely associated

with the customers more than any other company in the industry .Our aim is to maintain our

leadership standards in customer service.

2.6-HISTORICAL MILESTONES

Since its inception, TAFE has set high standards for itself in every respect. We have consistently grown over the years, reaching new heights and achieving new milestones.S.NO YEAR EVENT1 1960 Incorporated as a joint venture

with massey fergason.2 1961 Tractors roll out of our

sembium (chennai) factory.

3 1981 Second tractor factory established Doddaballapur(Bangalore) Engineering Plastics Division Plant established at Doddaballapur.

41987 Third Tractor Plant

established at Kallidaipatti near Madurai.

5 1990 Engineering Export Promotion council Export Award for 20 years (1990-2010).

6 2000 National Award for the Welfare of people with disability-govt of India.

7 2002 Second Engineering Plastics Plant established at maraimalainagar near Chennai.

8 2005 Eicher’s tractors business, Engines Plant at Alwar and transmissions plant at Parwanoo acquired under TAFE motors and Tractors Limited.

9 2007 Commendation for “Strong Commitment to excel” from the jury of the CII Exim Bank Award for Business Excellence.

10 2009 Commendation for “Significant achievement in the journey of excellence” from the Business Excellence.

11 2010 TAFE becomes India’s largest exporter of tractors.

12 2011 Front Sullivan- India Manufacturing Excellence Award (TAFE Madurai Plant).

13 2012 Commendation for Significant Achievement in the second band (550-600) by CII-EXIM Bank, for

Business Excellence.

Marketing strategies of TAFE tractors

Marketing is the set of human activities directed at facilitating and consummating exchanges

- Philip Kotler

Marketing strategy is a process that can allow an organization to concentrate its limited resources

on the greatest opportunities to increase sales and achieve a sustainable competitive advantage

At the heart of any business strategy is a marketing strategyBusinesses exist to deliver products that satisfy customers.

CUSTOMER ACQUISITION

Customer acquisition is the process of acquiring new customers for business or converting

existing prospect into new customers.