Calcutta, Oct. 5: Punjab Tractors Ltd (PTL), the Rs 900 crore tractors manufacturer, is planning to set up another plant to meet increasing demands.
Sources said the state-of-the-art new plant would manufacture up to 25,000 units. The plant will take the company’s total capacity to one-lakh units. “The demand for PTL’s tractors is increasing and the company is looking at a growth rate of 10-11 per cent per annum. The company needs to raise its capacity because the existing capacity will not be able to match the demand growth in the next couple of years,” they said.
The company has already started working on the details of the proposed project, sources added. They, however, refused to divulge the investment plan for the project.
“If everything goes right, PTL should be able to come up with the investment plan very soon. The company is also looking for potential areas where it can set up the new plant,” they said.
PTL, which is the second largest tractor manufacturer in the country after Mahindra &Mahindra, has managed to corner about 20 per cent market share in the domestic market.
“Thirty years back, when Punjab Tractors entered the market it lagged far behind its competitors. But with aggressive marketing and corporate strategies, it has been able to overtake them significantly,” they said.
PTL, which was promoted by the Punjab State Industrial Development Corporation (PSIDC), is also looking at the export potential in the US and Canada. “The company is already developing tractors with the US technical benchmark. Once the products are accepted in the US, which itself is a huge market, there would be no problem in selling these elsewhere in the world,” they said. The company is also equally interested in Australia and New Zealand.
PTL, which registered a handsome net profit of Rs 100 crore in the last financial year, is trying to maintain profitability in the current fiscal.