report

Company Profile
The Founding Philosophy
Background
Overview Manufacturing
Overview Material Management
Methods Involed
Design
Final Inspection



















COMPANY PROFILE

ABOUT THE COMPANY
The Escorts Group is among India's leading engineering conglomerates
operating in the high growth sectors of agri-machinery, construction & material
handling equipment, railway equipment and auto components.

Having pioneered farm mechanization in the country, Escorts has played a pivotal
role in the agricultural growth of India for over five decades. One of the leading
tractor manufacturers of the country, Escorts offers a comprehensive range of
tractors, more than 45 variants starting from 25 to 80 HP. Escort, Farmtrac and
Powertrac are the widely accepted and preferred brands of tractors from the
house of Escorts.
A leading material handling and construction equipment manufacturer, we
manufacture and market a diverse range of equipment like cranes, loaders,
vibratory rollers and forklifts. Escorts today is the world's largest Pick 'n' Carry
Hydraulic Mobile Crane manufacturer.

Escorts has been a major player in the railway equipment business in India for
nearly five decades. Our product offering includes brakes, couplers, shock
absorbers, rail fastening systems,composite brake blocks and vulcanized rubber
parts.
In the auto components segment, Escorts is a leading manufacturer of auto
suspension products including shock absorbers and telescopic front forks. Over
the years, with continuous development and improvement in manufacturing
technology and design, new reliable products have been introduced.
Throughout the evolution of Escorts, technology has always been its greatest ally
for growth. In the over six decades of our inception, Escorts has been much more
than just being one of India's largest engineering companies. It has been a
harbinger of new technology, a prime mover on the industrial front, at every
stage introducing products and technologies that helped take the country forward
in key growth areas. Over a million tractors and over 16,000 construction and
material handling equipment that have rolled out from the facilities of Escorts,
complemented by a highly satisfied customer base, are testimony to the
manufacturing excellence of Escorts. Following the globally accepted best
manufacturing practices with relentless focus on research and development,
Escorts is today in the league of premier corporate entities in India.

Technological and business collaboration with world leaders over the years,
Globally competitive indigenous engineering capabilities, over 1600 sales and
service outlets and footprints in over 40 countries have been instrumental in
making Escorts the Indian multinational. At a time when the world is looking at
India as an outsourcing destination, Escorts is rightly placed to be the dependable
outsourcing partner of world's leading engineering corporations looking at
outsourcing manufacture of engines, transmissions, gears, hydraulics, implements
and attachments to tractors, and shock absorbers for heavy trailers.

In today's Global Market Place, Escorts is fast on the path of an internal
transformation, which will help it to be a key driver of manufacturing excellence
in the global arena. For this we are going beyond just adhering to prevailing
norms, we are setting our own standards and relentlessly pursuing them to
achieve our desired benchmarks of excellence.



THE FOUNDING PHILOSOPHY

Over six decades back two young men set out on a journey together armed with
little beyond intelligence, business acumen and determination and dreams
aplenty. They believed that India could only achieve total freedom with a
breakthrough in the field of agriculture and mechanization would have to rule the
fields. Their youthful enthusiasm had kindled the hope that one day they would
make a mark of their own. They were in fact writing the first chapter of what has
come to be widely recognized as one of the greatest success stories in Indian
industry.
Escorts came into being with a vision. A vision that eschewed easy paths to
profitability, and sought instead for ways to make a contribution. A vision that led
two young brothers, Yudi and Hari Nanda, to branch out of their family's
prospering transport business and institute ventures that were to become the
foundations of Escorts Limited. On 17th October 1944, Escorts Agents Limited was
born at Lahore (now in Pakistan) with Mr. Yudi Nanda as Managing Director and
Mr. Hari Nanda as Chairman. It was a trendsetting marketing house driven by the
same business philosophy, which had given their family enterprise an unrivalled
reputation: customer concern. Not long afterwards, this driving ambition to go
beyond the expected led Hari Nanda to the first of his many successful business
insights - the discovery of the great business potential that lay in India's villages.
This led to the launch, in 1948, of Escorts (Agriculture and Machines) Ltd., with
Yudi Nanda as Director. Though separate business entities then, both companies
had two great strengths in common: the dynamic Nanda brothers and the
unifying force of the name they gave their companies; Escorts, literally 'escorting'
their products and services to the customer while most other businessmen were
just selling.
Tragically, Mr. Yudi Nanda died in an accident in 1952 - but his spirit remained
embedded in the foundations of the company. Mr. H P Nanda then took on the
mantle to realize the dreams which he had always seen with his brother.
Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged in 1953
to create a single entity -Escorts Agents Pvt Ltd. Having initially started with a
franchise for Westinghouse domestic appliances, by this time the Company had
already expanded its marketing and service operations, representing
internationally known German and American organizations such as MAN, AEG,
Haniel&Leug, Knorr Bremse, MIAG and BMA for sophisticated electrical and
mechanical engineering equipment and Minneapolis Moline and Wisconsin for
agricultural tractors, implements and engines. Escorts made a major thrust into
the agricultural arena by taking on the marketing and service franchise for Massey
Ferguson tractors in Northern India, which soon comprised 75% of MF's all-India
sales - a signal tribute to Escorts' inherent strengths. Its first industrial venture
came up in 1954, in partnership with Goetzewerke of Germany for the
manufacture of piston rings and cylinder liners - followed by production of pistons
in collaboration with MAHLE, also of Germany, in 1960. The company's
incorporation in its present name, Escorts Limited, was effected on 18th January,
1960. Escorts' next major industrial activity was the assembly of tractors in 1961
in technical cooperation with URSUS of Poland. Subsequently this led to the
manufacture of the country's first indigenous tractors under Escorts' own brand
name, which were to play a pivotal role in the Green Revolution. This went on to
lay the foundations that even today are the Company's core strengths -relevant,
world-standard technology through strategic international alliances; a
broadbased marketing and service network yet unrivalled.

Beyond the growth of the organization, these principles have ensured that Mr. H.
P. Nanda's contribution to the cause of industry and the consumer will endure. He
pioneered the revolutionary concept of 'interdependence' between ancillary and
large industries, institutionalizing vendor development and in the process building
Faridabad and the entire belt of townships in the region. He introduced the
discipline of service going before marketing, reassuring the customer that Escorts
would stay with them, that they were here for the long run. He built lasting
alliances with an array of the world's most respected names in tractors, industrial
equipment, two-wheelers, construction equipment and telecommunications.
Going further, he created institutions devoted to value engineering and training,
not only as investments in the company's future but also as catalysts for the
enhancement of Indian industry as a whole the Escorts R&D Centre and the
unique Escorts Institute of Farm Mechanization. His concern extended to the
society in which he worked, and he manifested it by establishing the Escorts
Medical Centre at Faridabad, Escorts Heart Institute and Research Centre at New
Delhi, as well as numerous village development programmes. And above all, he
imbued the corporation with his own pioneering.

Escorts is testimony to the valor, vision and values of its Founder Mr. H P Nanda.
He remains the inspiration for our courage, spirit of adventure and ability to
Think Big. These qualities are his enduring legacy and have inspired and
encouraged us down the decades and will continue doing so in all our endeavors.












Background



In 1960, our parent company, Escorts, set up the strategic Agri Machinery Group
(AMG) to venture into tractors.


In 1965, we rolled out our first batch of tractors under the brand name of Escort.



In 1969 a separate company, Escorts Tractors Ltd., was established with equity
participation of Ford Motor Co., Basildon, UK for the manufacture of Ford
agricultural tractors in India.



In the year 1996 Escorts Tractors Ltd. formally merged with the parent company,
Escorts Ltd.


Since inception, we have manufactured over 1 million tractors.








Overview Manufacturing
Escorts - AMG has Tractor manufacturing capacity of 98,940 trs / annum which is
the highest in Asia at one location. Its manufacturing operations are divided in
three plants as

Component Plant
Tractor Assembly Plant
Crankshaft & Hydraulic Plant

Component Plant consists of Machine shops in which all major castings such as
Engine blocks, Gear Box housings, Differential housings are being machined along
with Gears & Shafts. Machine shop consists of State of the Art machines such as
CNC Horizontal Machining Centers, CNC Turning Centers and variety of other
precision machines, including Gear Hobbing and Shaving machines, etc. It is
important to note that all critical components are machined in house.
Tractor Assembly Plant is divided into two lines as Farmtrac Line and the
Powertrac Line. Farmtrac Line is a composite line that has machining as well as
assembly activities of Engine, Transmission & Tractor whereas on Powertrac line
only Assembly activities of Engine, Transnmission& Tractor are being carried out.
Tractor Assembly Plant has State of the Art Paint Shop that has CED paint shop
facilities. Engine Shop has State of the Art testing facilities that includes AVL make
Eddy Current Dynamometers in Engine Test House.

Crankshaft & Hydraulic Plant is divided into two parts as Crankshaft Line and
Hydraulics Line. Crankshaft line consists of machine shop where crankshafts of all
Tractor models are being machined. It has State of the Art machines such as
Rotary Miller, Pin Grinder, Journal Grinder, etc. Hydraulic line consists of
Machining as well as Assembly activities where critical parts of tractor hydraulics
such as Distributor, Hydraulic Cylinder, etc are being machined and assembled. It
has State of the Art Honing and other precision machines.




Overview Materials Management

Presently procuring materials for 72,000 tractors per annum.
Present procurement value over US$ 30 million.
Production will rise to 100,000 tractors per annum in 2 years.
Procurement value will rise to almost US$ 45 million in that period.
Presently 387 suppliers of which over 95% are India domestic.
Advantages of low costs of materials in India.
Items procured are:
Castings
Forgings
Machined Parts
Proprietaries
Sheet Metal
Hardware