Exclusive interview with M. Saleem Memon, Director, P.M. Auto Industries By Nasir Mahmood
M Saleem Memon, Director, P.M. Auto Industries in his exclusive interview with MOBILE WORLD disclosed that they have launched EURO-F Agriculture Power Tractor in the first week of February. This is a Blue color tractor comprising three different models of 50, 60 and 80 Horse Power. This is a new technology adopted from Turkey. M/s Aca Automotives, Ankara is their Turkish counterpart extending parts and technical cooperation with P. M. Auto Industries, Hyderabad.
EURO-F is power efficient, most reliable, economical, multipurpose, and competitive product in Pakistan. It has hydrostatic, fully sealed multi-disc brake system with pendant paddle and spring suspension deluxe seat.
Replying to various queries from MOBILE WORLD Saleem Memon said; we had signed this cooperation agreement in 2008. Under this agreement we have localized up to 85 percent parts of the new product. For this purpose we have established P. M. Auto Industry assembling plant in SITE Hyderabad with a capacity of 1500-Nos. per month. Haji Younus Pirani is Chairman of the Company while Haji Usman Pirani is the other Director.
Initially, we had employed about 120 staff members in the Company, however, after coming into full fledged production we will require more than 600 workers. EURO-F Power Tractor vendors are already appointed in the main cities like; Lahore, Karachi, Chiniot, Multan, Gujranwala and Sialkot. We have started production with 300 tractors per month and gradually it would be increased, he said.
To another question Saleem Memon informed that price for the 50-HP model is fixed at Rs575,000/-, for 60-HP it is Rs675,000/- while for 80-HP the sale price is fixed at Rs850,000/-. The most important feature is that our all models are with Power Steering facility. It may be mentioned here that in 50-HP category we are the first who are introducing the power steering technology.
He added; we have already registered the EURO-F Power Tractor with ADBP for Federal Government’s Benazir Tractor Scheme, Punjab Govt. Tractor Scheme and Sindh Govt. Tractor Scheme.
Highlighting present market position of tractors within the country he disclosed that like local car assemblers the established tractor assemblers were also creating artificial shortages just to earn “own money”. For example one company was booking its product with eight months delivery time while its dealers were selling the same product in market with Rs50,000/- own money demand in ready stock. Similarly another assembler fetched Rs30,000/- in black marketing through its dealers. Hence, they have created acute shortage of tractors in the open market.
In these circumstances our new product would be obviously welcomed by the buyers who could not pay own money. The present monthly production of tractors by five different parties in the country is about 7000 units per month, while another 1000 are imported as CBU.
The Director, P.M. Auto Industries replying to a question about market saturation stated that in that case they have also worked out to export EURO-F Power Tractor to Bangladesh, Sri Lanka, Africa, South America and Afghanistan. Pakistan made tractors are already being exported to Afghanistan and South Africa by one local assembler. Similarly we have export orders in hand from Bangladesh and some African countries, he added.
Citing anomalies in government policies he said that on one hand govt. has allowed zero duty import of CBU tractors in Pakistan but on the other if we as local assemblers import tractor parts the custom duty is charged at the rate of 35 percent. This is wrong policy, government should also allow the parts import on zero duty. He stressed that government should encourage manufacturing of tractors in Pakistan so that the growers should not wait for months to get their orders accomplished. In addition, this industry could earn precious foreign exchange for the country through export of surplus production provided the govt. extends incentive oriented policy, M Saleem Memon, Director, P.M. Auto Industries concluded.
-Published on page# 8 in February-2010 issue of MOBILE WORLD Magazine