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Millat Tractors

Millat Tractors Limited
Native name
ملت ٹریکٹرز
Company typePublic
PSX: MTL
KSE 100 component
KSE 30 component
IndustryAgricultural machinery
Founded1964; 61 years ago (1964)
FoundersRana Khudadad Khan
Rana Allahdaad Khan
Headquarters
Lahore
,
Pakistan
Area served
Pakistan
Key people
ProductsTractors
RevenueDecrease Rs. 47.139 billion (US$160 million) (2023)
Decrease Rs. 7.486 billion (US$26 million) (2023)
Decrease Rs. 3.733 billion (US$13 million) (2023)
Total assetsIncrease Rs. 29.765 billion (US$100 million) (2023)
Total equityIncrease Rs. 9.728 billion (US$34 million) (2023)
Number of employees
336 (2023)
SubsidiariesTIPEG Intertrade DMCC (75%)
Millat Industrial Products Limited (64.09%)
Bolan Castings Limited (46.26%)
Millat Equipment Limited (45%)
Hyundai Nishat Motors (15.86%)
Websitemillat.com.pk
Footnotes / references
Financials as of 30 June 2023 [1]

Millat Tractors (Urdu pronunciation: [ˈmɪl.lət ˈtræk.tərz] MIL-lut TRAK-tərz) is a Pakistani agricultural machinery manufacturer based in Lahore, Punjab, Pakistan.[2][3] Founded in 1964, it is the manufacturer of Massey Ferguson tractors in Pakistan with a production capacity of 40,000.[4][5][6]

It is one of the two major tractor manufacturers of Pakistan with a 70 percent market share, as compared to Al-Ghazi Tractors which had 29 percent market share in 2021.[7]

History

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Millat Tractors Limited was founded as Rana Tractors and Equipment Limited in 1964 by Rana Khudadad Khan and Rana Allahdaad Khan. It became an importer and marketer of Massey Ferguson tractors in Pakistan.[4] The company initially imported tractors as completely built units (CBU) but transitioned to assembling them from semi knocked-down (SKD) kits by 1967, due to transportation and cost efficiencies.[8]

In 1965, Rana Tractors was listed on the Karachi Stock Exchange.[9]

In 1972, following the nationalization of key industries by the Government of Pakistan, Rana Tractors was renamed Millat Tractors and incorporated into the Pakistan Tractor Corporation (PTC), facilitating the assembly of tractors from completely knocked down (CKD) kits.[8] The first engine assembly line in Pakistan was developed by Millat Tractors in 1982, although the company faced difficulties in procuring cast and machined parts.[8] This led to the establishment of casting facilities at vendor sites in 1984 and an in-house machining facility for essential engine and axle components.[8]

In 1992, Millat Tractors was acquired by the employees of the company for PKR 305.97 million (US$ 12.49 million) under the privatization scheme.[10][11] Subsequently, a tractor assembly plant was established capable of producing 15,000 tractors annually in a single shift.[8]

In 1993, Millat Tractors acquired a 51 percent stake in Bolan Casting Limited, enhancing its casting capabilities for automotive parts.[8] The following year, it established Millat Equipment Limited to produce gears and shafts for tractors and other applications.[8]

In 1999, Millat Industrial Products Limited was established to manufacture batteries and cells for the automotive and industrial markets.[8]

In 2001, Millat Tractors acquired Rex Barren Batteries, a battery manufacturer based in Kasur, under the privatization scheme of the government of Pakistan.[12]

By 2015, Millat Tractors had diversified its product range to include seven tractor models, various industrial products such as generators and fork lifts, and twenty-five types of agricultural implements.[8]

In January 2023, due to continuous drop in demand for tractors and cashflow constraints, Millat Tractors suspended its plant operations till further notice.[13]

In June 2024, an audit of Millat Tractors submitted to the Federal Tax Ombudsman imposed a penalty of Rs 5.41 billion on the company.[14]

Products

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Recognition

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Millat Tractors, as a company, is on the Forbes List of Asia's 200 Best Under a Billion (2018)[3]

References

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  1. ^ "Millat Tractors Annual Report 2023" (PDF). millat.com.pk. Retrieved 30 November 2023.
  2. ^ Seyyed, Fazal Jawad; Shehzad, Ch. Tanveer; Ashfaq, Hafsa (6 March 2020). "Millat Tractors Limited: A Shariah-compliant Investment Opportunity". Asian Journal of Management Cases. 17 (1_suppl): S61 – S77. doi:10.1177/0972820119884399 – via CrossRef.
  3. ^ a b c d "Company Profile of Millat Tractors". Forbes. 18 July 2018.
  4. ^ a b "What's going on with Millat?". Profit by Pakistan Today. 28 November 2021.
  5. ^ a b Syed Wajeeh ul Hasan Naqvi (July–August 2018). "Driving Pakistan's agri future". Dawn. Retrieved 17 June 2021.
  6. ^ "Millat Tractors sets new production and sales record". The Express Tribune. 16 June 2018.
  7. ^ "Tractor collusion". Profit by Pakistan Today. 19 September 2021.
  8. ^ a b c d e f g h i Jajja, Muhammad Shakeel Sadiq; Hassan, Syed Zahoor (7 March 2016). "Millat Tractors Limited: Has The Time Come to Say Goodbye to Massey Ferguson?". Asian Journal of Management Cases. 13 (1): 1–22. doi:10.1177/0972820115619258. S2CID 155207431.
  9. ^ "Automobile Assembler: MILLAT TRACTORS LIMITED - Year Ended 30-6-2003". Brecorder. 14 June 2004.
  10. ^ Jafarey, V. A. Structural Adjustment and Macroeconomic Policy Issues. International Monetary Fund.
  11. ^ "Ministry of Privatisation - Privatisation Commission".
  12. ^ Hussain, Dilawar (5 December 2001). "Millat Tractors acquires Rex Barren". DAWN.COM.
  13. ^ "Millat Tractors shuts plant". DAWN. 6 January 2023.
  14. ^ Ali, Kalbe (22 June 2024). "Millat Tractors fined Rs5.4bn for sales tax audit discrepancy". DAWN.
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