The Heart of Tractors

Swaraj Engines Ltd. (SEL) was set up to manufacture engines for fitment into Swaraj tractors for Punjab Tractors Ltd. (PTL), which has since been merged with Mahindra & Mahindra, which bought 63.3 per cent stake in PTL in July 2007 and retained Swaraj brand. Subsequently, SEL has also become supplier of hi-tech engine components to SML Isuzu Ltd., the erstwhile Swaraj Mazda Ltd. Since start of commercial operations in 1989-90, SEL has supplied around 4,04,000 engines (upto FY11) for fitment into Swaraj tractors. SEL’s engine business currently constitutes around 94 per cent of the company’s product revenue. The remainder represents value of hi-tech engine components being supplied to SML Isuzu for assembly of commercial vehicle engines. Huge space to tract Despite a low penetration level of tractors in many states, India is one of the largest markets in the world in terms of sales volume. Riding on the strength of increased need for mechanization due to shortage of farm labour, supported by government initiatives, domestic tractor sales for FY11 reached 4,82,200 tractors – a growth of 20 per cent over last fiscal. Additionally,

This article was originally published on June 19, 2012.