Swaraj 50

Vijay C Roy

Conceived as the first indigenous tractor, offering the farmer freedom from expensive imports and high costs, Swaraj Tractors is today the second largest tractor maker in India. From a humble beginning at Mohali in Punjab in 1974, the brand has not only survived against all odds, but has seen rapid growth, with over 22 lakh customers across India.

The brand was a product born out of the Green Revolution. When the first tractor rolled out of the Swaraj plant on April 14, 1974, it had “Indian” written all over it and stood apart in the crowd of imported tractors. In the 20-25 horse power (HP) category, it was not just the cheapest but also the best performing tractor, recall analysts.

Major milestones

1972: Construction starts at Mohali.

1974: Commercial production begins. First 26.5 HP tractor launched.

1983: Swaraj 855 launched in 50 HP category.

1995: Second plant at Chappar Chiri, Mohali, established.

2002: Cumulative sales cross 5-lakh mark.

2007: M&M gets majority stake in Punjab Tractors Limited (PTL).

2009: Cumulative sales cross 7-lakh mark. Merger of PTL with M&M.

2018: Cumulative sales cross 15 lakh.

From the first model that rolled out, Swaraj Tractors got noticed for its authentic style. The rugged, rough-and-tough looks, the bold, straight-lines design, everything added to the distinct aura.

The brand is also a success story about how a government enterprise landed into professional hands (Mahindra Group) and saw exponential growth.

Looking ahead

Fusion of mechanisation with digital technologies & AI becomes paramount in our quest to ensure food security amid changing environmental dynamics. We remain steadfast in our commitment to preserve the emotional DNA of Swaraj. —Harish Chavan, CEO, Swaraj Division, M&M Ltd

When the Green Revolution was envisioned, the need for a parallel growth in agriculture mechanisation was felt. At that time, the installed capacity of tractors, all assembled in India with foreign collaborations, was only about 8,000 per annum. The Planning Commission estimated that India would have to add at least 40,000 tractor units every year for the next five years — especially in the 20-25 HP category. With this in mind, the Central Mechanical Engineering Research Institute (a laboratory of the Council of Scientific and Industrial Research) at Durgapur, West Bengal, was entrusted with the task.

In 1965, it undertook the development of a small tractor to enable mechanised farming to be introduced, especially in the smaller farm holdings common in India. The then director, MM Suri, floated the idea of manufacturing a fully home-made tractor. He assembled a team under the charge of the late Chandra Mohan, who later became the founding Managing Director of Punjab Tractors Limited (PTL).

After testing a couple of prototypes, the first Swaraj model was ready for commercial production. With the Punjab government showing interest in the project as a promoter, the technical know-how to manufacture Swaraj Tractors was transferred. It was on June 27, 1970, that Punjab Tractors Ltd was incorporated by the Punjab government and the first tractor rolled out from the Swaraj plant in Mohali in 1974.

The introductory Swaraj model was Swaraj 724, the first tractor manufactured with indigenous know-how, without resorting to the import of components.

Over the years, the brand has continuously invested in research and development. The company’s founders insisted on three critical elements: simplicity (of design), frugality (of engineering) and agility (to respond to market needs). Such was the popularity of the brand that cumulative sales crossed the 5-lakh mark in 2002.

PTL’s Swaraj brand was renowned across North India, but around 2003, majority stakeholder Punjab government planned to divest it as it began floundering. This led to a lack of investments and deterioration of relationships with the labour union. Once the most profitable tractor company, PTL gradually fell into difficult times. Insiders attribute the change in fortunes to poor management.

As Mahindra & Mahindra stepped in to acquire a majority stake in PTL in 2007, it became the largest tractor company in the world by volume. In the first six months, the group spent time on liquidating stock, improving collections and securitisation of debt. They set up a new leadership team, remodelled the sales division and extended dealerships.

In 2008, the sales channel was revitalised, and new dealerships added. With all these efforts and a growing tractor industry, Swaraj Tractors bounced back. In 2009, PTL was merged with M&M and came to be known as the company’s Swaraj Division.

Considering the strong brand royalty, M&M decided to retain the name, carving out a Swaraj Division within the company. In 2012, the company took the partnership approach and retained and nurtured PTL’s human resources, Swaraj models, investments in R&D and product development.

Today, Swaraj offers a complete range of farming solutions, including tractors with power ranging from 15 to 65 HP, wheel and track type combine harvesters, and a variety of farming implements.

The company is the only Indian tractor manufacturer with its own foundry and R&D centre. It employs over 6,000 people and supports local MSMEs/SMEs.

“The only thing that keeps us going is the trust that the farmers of India have reposed in us. After becoming a part of the Mahindra Group, we are investing heavily on product development and the technology aspect that helps us become better,” says Harish Chavan, CEO, Swaraj Division, M&M Ltd.

Riding on the robust demand, Swaraj Tractors is setting up a greenfield tractor manufacturing facility at Humayunpur in Mohali district with an investment of Rs 400 crore.

Spanning over 40 acres, the tractor maker plans to produce 30,000 tractors per annum at the unit initially. In the last fiscal year, M&M Farm Equipment Sector, a part of the Mahindra Group, sold 3,64,526 tractors in the domestic market.

According to Hemant Sikka, president, Farm Equipment Sector, M&M Ltd, beyond its products, Swaraj has also created an impact in society by actively driving positive change through skill development programmes across rural India. “The brand will set new benchmarks in manufacturing excellence and innovation in mechanising India with a sharp focus on customer-centricity, technological prowess and social responsibility,” he adds.

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