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In Focus: Preparing Ground

Punjab Tractor's waiting to turn the corner with a new management

The rough ride for Punjab Tractors (PTL) seems to have come to an end. With the overhauling of management, the company is ready for a turnaround. After the acquisition of around 13 per cent stake by the Burman family of Dabur late last year, PTL has undergone major management reshuffles.

With long-time managing director Yash Mahajan making an exit, the company has constituted a six-member group for restructuring. The new management, led by chairman PD Narang, has appointed Ariba and Accenture for formulating new sourcing and business strategy. Dabur is also likely to bring management expertise to boost Punjab Tractors' performance.

Of late, company's sales have been dipping. Its market share too has seen erosion, falling from 18 per cent to 10.8 per cent.

In an attempt to arrest the decline, the company - which has a capacity of 60,000 tractors - is planning to diversify its product bouquet. Capacity utilisation levels are expected to improve as domestic and export demand picks up. The company plans to widen its geographical presence and offer user-specific products, including relaunch of some of its models with improved engine and new features.

PTL is also increasing focus on overseas markets. For the year to March 31, 2006, the company posted a net profit of Rs 129.3 crore on revenue of Rs 958.6 crore.

Actis is the largest shareholder in PTL with a stake of 29% followed by LIC (15%) and the Burmans.