Details

Technical Note

Educator Copy

Note on The Local Suppliers To The Tractor Industry in Pakistan

Kara Isert, Sajid Khan, Irfan Amir


INDUSTRY : Tractor

AREA : Business Policy

ORGANIZATION : -

LENGTH : 0

LUMS No : 08-300-95-2

PUBLICATION YEAR : 1995

DESCRIPTION

KEYWORDS:

Local Supplies,Tractor Industry,Business Policy,Manufacturing Industry,Tractor Components,Operational Support,Automobile


DESCRIPTION:

This note provides an overview of the local tractor component manufacturing industry in Pakistan. The topics covered include industry growth, size, and geographical location, efficiency, buyer-seller relationship, fiscal and operational support, problems, and future prospects. In 1994, there were about 250 local firms which supplied Rs 1.82 billion worth of components to the four original equipment manufacturers (OEMs) of tractors in Pakistan'. Of the 250 companies, 145 (58 percent) were based in Lahore and 58 (23 percent) in Karachi. The remaining 47 firms were located in Gujrat, Gujranwala, Faisalabad, Daska, Multan, and Islamabad. The tractor supplier industry was highly concentrated with about 25 (10 percent) companies accounting for over 80 percent of industry sales2. Typically these large firms did not manufacture products exclusively for the tractor industry, rather they also supplied to other sectors of the automotive industry, namely, cars, jeeps, trucks, and motor cycles'. However, for about 60 percent (150) of the total 250 firms the manufacture of tractor components was the .principal activity4.


LEARNING OBJECTIVES:

N/A


SUBJECTS COVERED:

Business Policy