COMPANY PROFILE

Escorts Limited

Escorts Ltd is one of India's leading engineering conglomerates with over six decades of
experience. It has helped accelerate India’s socio-economic development through its presence
across the high growth sectors of agri-machinery, construction & material handling equipment,
railway equipment and auto components. The company has diversified business in to four
different segments.

1. Escorts Agri Machinery (EAM),

2. Escorts Construction Equipment (BCE),

3. Escorts Railway Products (BRP) &

4. Escorts Auto Products (EAP)

Escorts Group

The Escorts Group is an Indian multinational engineering conglomerate that operates in the
sectors of agri-machinery, construction and material handling equipment, railway equipment and
auto components. Headquartered in Faridabad, Haryana, the company was launched in 1944 and
has operations in more than 40 countries. Escorts Group’s management team includes Rajan
Nanda as the Chairman and Managing Director and Nikhil Nanda as the Managing Director.
Products produced by Escorts comprises of: Tractors, crop solutions, cranes, loaders, shock
absorbers, struts, steering components, brakes for railways, couplers, etc. It has around 10000
plus employees all over the world.
1. Escorts Agri Machinery
A pioneer of farm mechanization in India, Escorts Agri Machinery (EAM) was launched in
1960. The company manufactures tractor under the brand names of Escort, Farmtrac and
Powertrac. EAM consists of four manufacturing plants that cover an area of 134,000 sq.m.
The company also has a plant in Poland, which is a 100% subsidiary and functions in the name
of Farmtrac Europe.

2. Escorts Construction Equipment

Escorts Construction Equipment (ECE) manufacturers and markets construction and material
handling equipment; like cranes, loaders, vibratory rollers, Backhoe Loader and forklifts. The
company introduced the concept of Pick 'n' Carry hydraulic mobile cranes in the 1970s in
India. The ECE manufacturing and assembly facility is located across 250,000 sq.ft. of space in
Faridabad.

3. Escorts Railway Products

Escorts Railway Products (ERP) is an ISO 9001 certified company that manufactures critical
railway components. ERP supplies air brake system, EP brake system, draft gears and couplers,
composition brake blocks, dampers and rubber components to Indian Railways.

4. Escorts Auto Products

Escorts Auto Products (EAP) manufactures auto suspension products such as shock absorbers,
struts and telescopic front forks for the automotive industry. The company pioneered automotive
shock absorber manufacturing in India in 1966 in technical collaboration with Fichte & Sachs,
Germany. The EAP manufacturing unit is spread across an area of 12,500 sq. ft. in Faridabad.

5. Knowledge Management Centre

Set up in 1976, the Escorts Knowledge Management Centre (KMC) is spread over 100,000
sq.m. area in Faridabad. This centre designs the entire tractor – engine, transmission plus
hydraulic systems and vehicle design consisting of sheet metal (including styling), controls and
accessories.
The KMC has facilities such as engine laboratory featuring computerized test beds with online
control, data acquisition and analysis, advanced vehicle testing laboratory, noise vibration and
harshness lab, metrology lab, and materials engineering lab. The KMC uses
3D-modeling, analysis and simulation software for engines, transmissions and vehicles.
Physical prototypes are then tested for performance, durability and reliability.
 HISTORY OF THE ORGANIZATION

Escorts Ltd is one of India's leading engineering conglomerates with over six decades of
experience. The company has diversified business in three different segments i.e. Agri
Machinery Material Handling & Construction Equipment and Railway Equipment. Escorts Ltd
was incorporated in the year 1944 as Escorts Agents Ltd in Lahore by two brothers, Har Prasad
Nanda and Yudi Nanda. They started out with the family owned Nanda Bus Company
in Jammu..

In the year 1951 Escorts established India's first private Institute of Farm mechanization at Delhi
and in the year 1953 Escorts (Agents) Ltd and Escorts (Agriculture and Machines) Ltd merged to
form Escorts Agents Pvt Ltd. The company was converted into a public limited company in
December 1959 and subsequently the name was changed to Escorts Ltd in January 1960. In 1961
the company set up its manufacturing base at Faridabad and started manufacturing X-Ray
machines with collaboration of Westinghouse and Heating Elements with Elpro.

In the year 1977 the company set up their first independent R&D Center namely Escorts
Scientific Research Centre at Faridabad. Also they set up their second plant at Bangalore for
manufacturing piston assemblies. In the year 1979 they made collaboration with JCB Excavators
Ltd. UK for manufacture of excavators.
In the year 1980 the company forayed into healthcare and set up Escorts Hospital and Research
Center in Faridabad. In the year 1984 the company signed an agreement with the Japanese bike
giant Yamaha to manufacture motorcycles with Yamaha technology.

During the year 2005-06 the company set up a new manufacturing facility in Rudrapur
Uttarakhand for manufacture of new range of railway equipment. .During the year 2006-07 the
company embarked on entering into the manufacturing of shock absorbers for commercial
vehicles. In 2010 Escorts became the first Indian company to indigenously design Backhoe
Loaders. In 2011 Escorts launched India's first inverter tractor FT45.In 2012 Escorts developed
the most fuel efficient tractors Powertrac 425. During the year the company indigenously
developed Bogie Mounted Brake Systems for Indian Railways. In 2013 Escorts launched Ferrari
tractors, the world's best in specialty tractors in collaboration with the Italian tractor brand. In
2014 Escorts launched Farmtrac 4X4 introducing high end car technology for Indian tractors .In
2015 Escorts launched Anti-Lift Tractor - India's first lift-resistant tractors for commercial
haulage operations.

From a small agency house in 1944 to one of the largest engineering conglomerates in India, the
saga of Escorts Ltd ascent is entwined in the evolving dynamics of India’s economic progress. In
a journey of seven pioneering decades, it has reshaped, redefined and reinvented, the way India
lives, works and travels.
Valued relationships with technology leaders of the world, relentless stress on innovation and
modernization, and sustained adherence to best–in-class manufacturing practices, have seen it
emerge as a technologically-evolved engineering organization, at par with the finest in the world.
ESCORTS HISTORY- MAJOR MILESTIONES

1944 Escorts started Escorts Agency Ltd. in Lahore.

1950 Established India first Farm Mechanization Institute at Azadpur.
Later it was shifted to Kashipur.
1958 Started import MF tractors from YUGOSLAVIA for marketing in
India.
1960 A manufacturing plant was set up at Faridabad.
1961 Acquired license to manufacture URSUS/ESCORTS tractors.
1969 Signed a contract with Ford Motor Co. (USA) to manufacture Ford
3000 Model tractors.
Established EIFM (Escorts Institute of Farm Mechanization) at
Bangalore (India), the largest institute Asia & in the world.
1971 Introduction of Ford Brand tractors.
1974 400 tractors were exported to Afghanistan.
1975 Turnover crossed the Rs. 200 million mark for ETL
Profit after Tax was Rs. 8.7 Million.
Declared a Dividend of 10%
1977 Commencement of Escorts Scientific Research Centre, known as
knowledge Management Centre at Faridabad by developing its own
engines for E27 & E37 tractors.
1979 Turnover crossed the Rs. 50 crores mark.
1981- Development & Introduction of a three cylindrical engine for E355.
82
1984 75000th tractor came out on the field.
1988 The annual turnover goes beyond Rs. 100 crores.
A Dividend of 45% declared for 15 months.
1993 Introduction of Ford 3620.
1995 Termination of tie up & ford turned into Farmtrac
1996 Separation of JV with FNH & introduction of Farmtrac.
1998 Introduction of powertrac.
PROFILE OF PRODUCTS AND SERVICES BY ESCORTS CONSTRUCTION
EQUIPMENT PVT LTD

1) Material handling equipment

Think of a material handling operation, and Escorts has a crane for it. The cranes range from 10T
to 40T, with varying reach on different axes. The material handling machines are safe,
economical and highly productive, capable of lifting and placing loads and also traveling long
distances. As a result, they not only make the operator’s job easier, but also ensure that he is able
to deliver more in less time.
1. Pick-n-Carry Cranes - Hydra Series

2. Pick-n-carry TRX Series

3. Rough Terrain Slew Crane

4. FX Series
 5. GX Series

6. Pro5 Series

2) Earth Moving Equipment

The first Indian company to have designed backhoe loaders indigenously, Escorts’ range of
advanced backhoes is touted to redefine the standards of excellence in digging. Our backhoe,
Digmax II, ranks amongst the best in class and outdoes its global peers in reach, productivity
and cost per cubic meter of good earth excavated. This automatically means better returns on
investment for our customers and superior performance for the operators.

1. Backhoe Loader
 2. Hydraulic Excavator

3) Road Construction Equipment

The Compaction products portfolio is one of the most exhaustive in the country. The machines
are equipped with the best aggregates from leading international technology companies and
laden with high-end features. Ideal for road compaction and relaying, these machines are the
most productive, economical and rugged in their segments.

1 Soil Vibratory Roller

2 Tandem Vibratory Roller

3 Mini Tandem Vibratory Roller

MISSION, OBJECTIVES AND STRATEGIES OF THE ORGANIZATION

Through the power of Imagination in engineering we creates solution that

helps our customers, be more productive.

Mission of Escorts is:

Engineering Changes through core competency for greater synergy reinforcing
bonds with customers & establishing powerful symbiotic relationship with
international allies, preparing global market. The company wants to make a lasting
difference to its shareholders, its customers, its business associates, its employee and
the country as a whole. The company also gives better quality and better technology
to customer and treats every customer as “special” to build respect for, and loyalty
to, Escorts.

Vision 2022
1. Planet Earth
Food Security for 9.7 Billion People by 2050
43% more food required from current 2.1 bn. Tones

2. Country India
Doubling Farmer Income by 2022
Food Security: 350 MT Food by 2025
World class infrastructure generating opportunity of US $ 5 Billion in CE
World class rail network with Govt. investment of INR 8.5 Trillion over 5 years

3. Escorts Group
Powering the Dreams of Farmers Planet Earth Country India Escorts Group 2
Preferred Partner in Nation Building
Ensuring Safety and Comfort in Rail Transport

Strategic values
The Strategic Values define how an organization will achieve the envisioned future. These must
be embedded into manner of thinking and ways of work.

Customer Centricity
Acute sensitivity to the needs and experiences of the customer shall guide all that an
organization needs to do.
Excellence
The organization strives to achieve and surpass world class standards in all the field of its
production.
Innovation
The organization uses the power of technology and imagination to deliver solutions to the
customer’s needs.
Agility
The organization tends to operate in markets with the ability to change direction and position
with nimbleness and speed.
 ORGANIZATION STRUCTURE

Chairman and Managing Director- Nikhil Nanda

Secretariat

Flagship Operating Division

Escorts Ltd. Bangalore

Agri Machinery Engineering International Business

Corporate Center, Bangalore Escorts Research Institute of Mechanization,

Bangalore

Personnel Finance Project Associate Companies Subsidiaries Companies

Law Export Communication

Administration and
Security
POLICIES AND PROCEDURES FOLLOWED

Policy for preservation of records of escorts limited

The Board of Directors of Escorts Limited has adopted this policy
for Preservation of Records of the Company . The board may review this policy from time to
time. This Policy is framed in accordance with the requirement of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and is intended to provide the systematic review,
retention and destruction of documents received or created in the course of business. This
Policy covers all documents, whether in paper or electronic form, which are
created or received by the Company in the course of its activities.

Policy on materiality of related party transactions and on dealing with related party transactions
This policy sets definition of materiality of related party transactions and dealing with related
party transactions. Regulation 23 of the SEBI Listing Regulations requires a Company to provide
materiality thresholds for transactions beyond which approval of the shareholders through
resolution will be required and the related parties shall abstain from voting on such resolutions
whether the entity is a related party to the particular transaction or not. The Company has fixed
its materiality threshold at 10% of the annual consolidated turnover of the Company as per last
audited financial statements of the Company for the purpose of Regulation 23(4) of the SEBI
Listing Regulations with any particular related party.

Policy for determining material subsidiaries

This policy sets out the criteria for determining material subsidiaries. A subsidiary shall be
considered as material subsidiary if‐ the investment of the Company in the subsidiary exceeds
20% of its consolidated net worth as per the audited balance sheet of the previous financial year
or the subsidiary has generated 20% of the consolidated income of the Company during the
previous financial year.

Policy on appointment of director’s and members of senior management

The primary objective of the Policy is to provide a framework and set standards for the
appointment of talented and self-motivated Directors and Members of Senior Management who
should have the capacity and ability to lead Escorts towards achieving its stated goals and
strategic objectives, taking into account the interest of all stakeholders.
The Board is ultimately responsible for the appointment of Directors and recommending the
appointment of Independent Directors to the shareholders for their approval.
The Board delegates its responsibility for the assessment and selection of suitable candidates for
the position of Directors of Escorts to the NRC, which will submit its recommendations to the
Board, in accordance with this policy.
Corporate social responsibility policy

The main objective of CSR Policy is to lay down guidelines for the Company to make CSR a
key business process for sustainable development of the society. It aims
at enhancing welfare measures of the society based on the immediate and long term
social & environmental consequences of its activities.

In the aforesaid backdrop, Escorts framed its CSR Policy taking into account the
following measures: ‐ Welfare measures for the community at large so as to ensure
the poorer and underprivileged section of the society derive the maximum benefits.
Contribution to the society at large by way of social and cultural development,
imparting education, skill development training and social awareness specially
with regard to the economically backward class for their development through
generation of income and employment.Environment Protection, safeguard and maintaining
ecological balance.

Dividend distribution policy

The objective of this Policy is to establish the principles and criteria to be considered
by the Board for recommending dividend. The Board will refer to the Policy while
declaring/ recommending dividends on behalf of the Company.
The profits earned by the Company can either be retained in business to be used for acquisitions,
expansion or diversification, or it can be distributed as dividend to the shareholders. The
Company may also choose to retain a part of its profits and distribute the balance
among its shareholders as dividend. This Policy aims to
reconcile and balance these needs in order to maintain fairness and consistency while
considering distribution of dividend to its shareholders in order to ensure a regular dividend
for the shareholders as well as the long term capital appreciation for all
stakeholders of the Company.
Through this Policy, the Company would endeavor to maintain a consistent approach to dividend
pay‐out plans. The Board may however, in extraordinary circumstances,
deviate from the parameters listed in this policy.
Board diversity policy

The primary objective of this Policy is to provide a framework and set standards for having a
diversified Board with ability to base its decisions after evaluating multiple options as compared
to homogeneous Boards and help improve the performance of the organization significantly. A
diversified Board not only enhances Board’s effectiveness by ensuring rational, pragmatic and
quick decision making but also better understands and connects with the stakeholders to attain
the Escorts’ stated goals and strategic objectives.

Risk management policy

Risk management Policy helps organizations to put in place effective frameworks for
taking informed decisions about risk. The guidance provides a route map for risk
management, bringing together policy and guidance from Board of Directors, Company's,
Insurers etc. It outlines the framework which will help to
achieve more robust risk management.

Whistle blower policy

This Policy is an extension of the Code and the purpose is to provide a platform to all the
stakeholders including the Directors of Escorts to report any instance of misconduct, actual or
potential violation of Code or other applicable laws or regulations without any fear of reprisal or
victimization. Directors and Employees of the Company may come across instances of fraud,
misconduct, violation of Code or other applicable rules and regulations. There may also be
situations where the right course of action is unclear. In such instances, the Employee has both
legal and moral duty to take appropriate measures to identify such situations and to report
genuine concerns about the incident of misconduct or potential violation of law or the Code.
While violations of the Code may also be reported through regular channels of reporting for the
Employees, there may be times when an Employee believes it to be inappropriate or difficult to
report through these channels and such matters may be reported under this Policy. This Policy
provides guidance on ‘how to report a Protected Disclosure’ about any misconduct or violation
of the Code or other applicable policies or laws governing the Company.
Investment policy

The broad objectives of the policy are:

 Safety of funds
 Easy liquidity
 Reasonable return on the investment
 Set Authorization level for Investments
 Minimizing the idle funds

This Investment Policy aims to cover Investment Objectives and Investment Guidelines that
should govern the management of the Company’s investments. At the same time, these
guidelines should provide adequate flexibility given changes in market environment and any
contingent circumstances.

Remuneration policy for the directors, key managerial personnel, senior management and other
employees

The primary objectives of this Policy are as under:

(i) To ensure that the level and composition of remuneration is in line with other companies
in the industry, sufficient to attract and retain right talent, at all levels and keep them
motivated enough to meet the organizational objectives
(ii) To ensure that a reasonable balance is maintained in terms of composition of
remuneration (fixed and variable component).
(iii) To have performance measurement parameters in place to assess the overall
performance of Directors, KMPs, Members of Senior Management and other employees.

PERFORMANCE APPRAISAL SYSTEM

In today’s competitive environment it is essential to harness individualaspiration and

potential and gear them suitably to meet business objectives. To makethis happen, both
you and the organization would like to know how you have been performing and your
potential for growth.

The objectives of performance appraisal

• To be developmental in nature where individuals grow with the organization.
• To integrate individual performance and contributions to larger organizational goals
and needs.
• To open greater communication between superior and subordinate.
 • To ensure a realistic link between performance, recognition and reward.
• To provide core data for human resource development / organizationaldevelopment
efforts.
• To encourage innovativeness through unique contribution.
• To focus on employee contribution and not on efforts

The appraisal cycle

The appraisal cycle for DGM and above is 1st
June to 30th June. Increments / promotions are effective from 1st July every year. The
appraisal cycle for employees in grades M2 to M8 grade become effective from 1st Jan.
each year and from M8 to DGM from 1st April. Consequently, the appraisal period in
respect of such employees after promotion is of 15 month for the first year i.e. the next
review would be on 1st April or 1st July, as the case may be, of the following year.

Appraisal of employees on deputation

In case the employees are working on deputation in a differentcompany/division of
Escorts, the parent company division shall carry out employees’ appraisal. This is not
applicable to employees in the categories of DGM and above and their cases will
continue to be processed as usual from the chairman / vice chairman’s office as is being
done at present.

In case the employees are working on deputation in a differentcompany/division of

Escorts, the parent company division shall carry out employees’ appraisal. This is not
applicable to employees in the categories of DGM and above and their cases will
continue to be processed as usual from the chairman / vice chairman’s office as is being
done at present.

Appraisal of trainees

Only trainees who have been regularized (confirmed on or before 30th September) shall be
eligible for performance appraisal for that block of appraisal period. Trainees regularized there
shall be eligible for confirmation appraisal according to the rules laid there under.

Confirmation appraisal

Trainees on completion of the training period and employees on completion

of probation period shall be appraised for regularization / confirmations. Duringconfirmation /
regularization, incumbents are evaluated for:- 1.Group performance 2.Personal performance
3.Supervision and leadership qualities 4.Developmental needs
Employees are covered for superannuating only after confirmation but with effect from their date
of joining.

SYSTEM OF ACCOUNTING FOLLOWED

The financial statement of the organization comprise the Balance Sheet as at March 31, the
Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information. The Escorts has
fully computerized accounting system that facilitates fast operations of its various functions.

A company's internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting
principles.

A company's internal financial control over financial reporting includes those policies and
procedures that

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company. (2) Provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipt and expenditures of
the company are being made only in accordance with authorizations of management and
directors of the company. (3) Provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the Company's assets that could have
a material effect on the financial statements.
SIGNIFICANT FACTORS FOR SUCCESS

The critical factors for success in this industry lie in the overall value proposition that one is
delivering to its customers. Escorts Construction Equipment Ltd (ECEL) has defined the
evolution of India’s Earthmoving and Construction Equipment (ECE) space over the past four
decades. The company entered the field of Material Handling Equipment way back in 1971 when
it introduced the concept of Pick-n-Carry Hydraulic Mobile crane. From slew cranes, crawler
cranes, tower cranes to vibratory compactors, loaders and forklift trucks, ECEL is a supplier to
every major industrial/ infrastructure project in the country.

Over the years, ECEL has inked exclusive marketing and distribution agreements with some of
the world’s best known names. Through these global partnerships, Escorts Construction
Equipment has been able to cater to the varied needs of the growing construction equipment
market in India. Some of the products on display at the fair included Telescopic Handlers and
Ariel Platforms from Manitou, Motor Graders and Wheel Loaders from XGMA, Forklifts from
Doosan, Tower Cranes from Commansa-Jie and Truck Cranes from Zoomlion. Escorts
Construction Equipment is also introducing safety features in its entire range of products which
forms the central theme for all future product enhancements. Safe load indicator from leading
Australian company Rob way is the latest offering, which has especially been configured for
Escorts Hydraulic Mobile cranes.

The critical factors for success in this industry lies in the overall value proposition that one is
delivering to its customers, besides of course product features, pricing and service support
delivery. The focus is on innovative design, engineering, optimal design, productivity and
efficiency for better products catering to customers’ current and future needs. ECEL has been
constantly introducing new technologies and services to meet changing customer needs. ECEL
edge in this industry also comes from the pan-India presence of sales and support.
PRODUCT PROMOTIONAL MEASURES

Before going to promotion strategy the company must take decisions on the total promotion
budget and choice of the promotional tools to be used is one of the most difficult marketing
decisions facing companies is to work out on how much to spend on promotion.

The escorts construction equipment ltd follows following measures for promotion of it’s
products-

1 Advertising Strategies

2 Sales Promotion Tool

The Advertising Tools are-

 Banners and Posters

 Printing and calendars
 Catalogues advertising
 Window display
 Pilot project
 Gifts bags/ Carry bags
 Anniversary functions
 Wall paintings
 Send escorts chariots
 Gifts to loyal customers as well as to employees
 Good communication system
 Customer relation services

Selling Process-

The selling process is the most important aspect of every organization the process followed by
Escorts are-

 Telephonic enquiry
 Walk in customer
 Sales experience
 Showroom demonstration
 Vehicle delivery
CAREER PLANNING AND PROMOTION POLICY OF EMPLOYEES

At Escorts, it is believed that competitive advantage is resident within people. The people at
Escorts bring to the company a diverse ferment of multi-sectoral experiences, academic
qualifications and domain knowledge drawn across ages, genders and regions. More than this
complement, people bring to the company a distinctive passion. This passion has been reflected
in the ability to disrupt the sectoral or corporate status quo and enhance the company’s
engineering competitiveness, reflecting in superior product quality and enhanced customer
delight.

The company's Core values (Respect for People, Empowerment, Transparency and
Collaboration), Strategic values (Customer centricity, Excellence, Innovation and Agility) and
strong employer value proposition is deep rooted in its exceptional positioning as a 'School of
Leaders' – offering ever challenging jobs/role in career to develop and build necessary skills for
both, functional and leadership responsibilities. Escorts's approach to grooming talent and
leaders has matured over several decades and every generation of leaders has left a mark through
their remarkable value system, commitment to innovate, ownership for delivering results and
exceptional entrepreneurial mind set. They always ensure that they attract, retain and develop the
best talent and our processes help lay a robust foundation for continuous development and
renewal. The philosophy revolves around cross-functional team effectiveness, job rotation and
creates diversity of experiences in an individual’s career.

The starting point is one of our Core value - RESPECT FOR PEOPLE. They are committed to
nurturing an inclusive and supportive work environment. It makes our workplace a more
enriching environment for every employee. Further, the talent strategies have been very well
integrated with inclusion, diversity and culture. Escorts recognize the fact that promoting
diversity and inclusion in the workplace is a constant work in progress, and it is maintained and
nurtured every moment. The engagement of employees in cross-functional projects, Town Halls,
activities and CSR are some of the examples. In Escorts, business leaders are committed to
develop a more cohesive, collaborative, and creative work environment as a means of driving
continued growth.

Growth opportunities

The flagship leadership development program, ESCOSTARS, provides an opportunity to

employees at mid to senior management level to build skills and advance their career growth
within the company. In addition, the company continues to focus on constant development of
people across all levels through calendar program and various external programs conducted at
IIMs/ISB and other premier institutions.
In Escorts, career trajectory is imagined in two directions: Vertical and Horizontal. Vertical
growth (also known as Ladder approach) is like taking the elevator straight to the destination.
Horizontal growth (also known as Lattice approach) is like opening a bunch of new doors and
new possibilities.

Taking a vertical approach to career makes the most sense when someone on a specialist track
with a clear idea of the role that he/she would like to have, especially within a defined function.
Technical specialists with deep subject matter expertise typically benefit more from a vertical
track as each role in the career path will build upon and deepen the experience and knowledge of
that person.

The ability to lattice one’s way to the desired job within his/her the company may depend on
several factors, including person’s own appetite for not following the “traditional” ladder
approach. This approach to career growth can apply to many job functions, and is especially
critical to those who aspire to be general managers, senior business leaders, or any other role that
requires a cross-functional and more generalist set of skills and experience. The lattice approach
is also useful to anyone considering a career change, needing to increasingly balance work and
life demands or anyone seeking to add a variety to their skills.

TRAINING MEASURES

At Escorts, sustained improvement in quality, products and processes, forms the core of ethos
and working style. This is only possible if they expand the potential of their intellectual capital
through rigorous training programs. Recognizing this need for systematic training and education,
we set up the Escorts Training & Development Centre (ETDC), in 1969 at Bangalore.

An extension of value system, this scientifically-planned centre provides training to farmers,

employees, dealers, salesmen, service in-charge, parts in-charge, mechanics, financial
institutions, government nominees, and agricultural and engineering students. ETDC is equipped
with modern teaching aids including multimedia, computer learning center, multilingual training
literature, technical AVs, plus an exhaustive library on various farming techniques, automobiles,
agricultural engineering and management. The various training programs at ETDC include:
Hands-on training, workshops with cut-away section models, demo training, and special training
programs for students of agricultural and engineering colleges. Till date, they have achieved 3.25
lakhs man-days in various training programs at ETDC.
IT SYSTEM USED

The Escorts Group has adopted IBM’s smarter computing approach to information technology.
Through an agreement with IBM, Escorts Group will receive a workload- optimized hardware
solution to replace the company’s existing ERP system infrastructure. The advanced systems
provide enhanced performance and compliment the company’s business growth goals of
lowering overall IT operating costs.

Escorts Group has expanded its deployment of Oracle Corp.’s Oracle Applications ERP software
to cover two new divisions – a utilization increase of about 40 per cent. During the hardware
evaluation process to support the expansion, Escorts considered various options including
Itanium-based servers from Hewlett-Packard Co. and Oracle Corp.’s Exadata Database Machine.
The company, however, chose to replace HP PA-RISC servers with IBM Power 750 Express and
IBM Power 740 Express systems. Each of the systems is complemented by IBM System Storage
DS5000s, and IBM Tivoli Storage Manager Software.

The new infrastructure resides in Escorts Group’s newly-built corporate datacenter and will
manage the company’s disaster recovery system in addition to the ERP system. In addition to
gains in performance and reliability, the IBM solution is expected to provide Escorts Group with
savings in power and cooling costs of between 30 to 35 percent, over a three year period.

FUTURE PLANS

The company’s future strategy is to largely focus on financing of group products and ensure a
healthy growth rate and at the same time maintain a high capital adequacy ratio. The company
also plans to increase the share of construction equipment business in its lending portfolio. The
company has recently started plant hire of construction and other equipment as an additional
facility for its client.

Escorts aims to clock a total production of 6,000 units in this fiscal and will increase it to 15000
units in the next three years. Escorts, having 40 per cent market share in Material Handling
segment (Cranes) is focusing on increasing its portfolio in excavators where it has almost
negligible presence. The construction equipment maker is also coming out with new generation
cranes that will available in the market in first quarter of fiscal year.

To meet the increased demand new emission norms the company will invest about three percent
of its revenue. The construction equipment is expected to adopt BS-IV complaint vehicles by
2020 , however, the company will skip the BS-IV and directly move to BS-V.
Apart from meeting the local demand, the company is also looking to enhance exports in South
American countries.

SYSTEM FOLLOWED FOR PURCHASE OF RAW MATERIALS

In Escorts planning for components of inventory is done at the plant level with the help of
Manager Purchase and stores. The planning for indigenous raw material is based on input
consumption efficiency statistics computed and on the basis of annual order with monthly
delivery schedule matching with production. Foreign raw material is planned on the basis of
adhoc procurements on account of delays in imports. Stores and spares indigenous is planned in
order to avoid maintenance and break-down. Foreign stores and spares are planned for specific
time requirement, based on supply lead time and cycle time of manufacture, general practice to
get a spare set of spare parts and by determining minimum and maximum stock levels.

Work in process is planned on process parameters, usual period of ageing and on customer
requirements and production cycle. It may vary in case of line production and batch production.
Finished goods is planned on the basis of sales planning, subject to constraint of production and
storage capacity, by determining economic quantity and on customers requirement.

In Escorts scheduling contributes towards minimizing the production cycle time, it forms the
main basis for inventory budgeting and helps in forecasting the requirement of raw material,
stores and spares.

HRD MEASURES

After the introduction of the concept of Corporate Social Responsibility (CSR) in the Companies
Act, 2013, Corporate Social Responsibility has gained prominence from all avenues.
Organizations also accepted and realized that Government alone will not be able to get success in
its endeavor to uplift the society. With the rapidly changing corporate environment, more
functional autonomy, operational freedom etc., Escorts Limited has adopted CSR as a strategic
tool for overall sustainable growth.

In the aforesaid backdrop, Escorts framed its CSR Policy taking into account the following
measures: -

a. Welfare measures for the community at large so as to ensure the poorer and underprivileged
section of the society derive the maximum benefits.
b. Contribution to the society at large by way of social and cultural development, imparting
education, skill development training and social awareness specially with regard to the
economically backward class for their development through generation of income and
employment.

c. Environment Protection, safeguard and maintaining ecological balance.

Objective
The main objective of CSR Policy is to lay down guidelines for the Company to make CSR a key
business process for sustainable development of the society. It aims at enhancing welfare
measures of the society based on the immediate and long term social & environmental
consequences of its activities.
The commitment of the Company will be manifested by investing resources in any of the following
areas:
Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation including
contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of
sanitation and making available safe drinking water;
Promoting education, including special education and employment enhancing vocation skills especially
among children, women, elderly, and the differently abled and livelihood enhancement projects; Vil.
Promoting gender equality, empowering women, setting up homes and hostels for women and orphans;
setting up old age homes, day care centers and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward groups
Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare,
agro forestry, conservation of natural resources and maintaining quality of soil, air and water including
contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga
Protection of national heritage, art and culture including restoration of buildings and sites of historical
importance and works of art; setting up public libraries; promotion and development of traditional arts
and handicrafts
Measures for the benefit of armed forces veterans, war widows and their dependents
Training to promote rural sports, nationally recognized sports, Paralympics sports and Olympic sports
Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central
Government for socio-economic development and relief and welfare of the Scheduled Castes, the
Scheduled Tribes, other backward classes, minorities and women
Contributions or funds provided to technology incubators located within academic institutions which are
approved by the Central Government
Rural development projects, slum area development and any other activity as may be notified by the
relevant Authority under Schedule VII of the Act.
CSR funds
The corpus for the purpose of carrying on the aforesaid activities shall include the following:
2% of the average Net Profits of the Company during immediately preceding three financial
years.
Surplus arising out of CSR activities carried out by the Company and such surplus will not be
part of business profit of the Company.
Allocation of funds
The fund for the CSR will be allocated based on the provisions under the Companies Act, 2013
and rules made there under {including any statutory modification(s) or re-enactment thereof for
the time being in force} [hereinafter referred to as “the Act”]. Out of the total CSR funds, the
CSR Committee will be authorized to allocate funds for the activities mentioned herein.

KEY PROJECTS OF ECEL

• Strengthened earthmoving portfolio (to include wheel-loaders and excavators, among others)
by entering into an exclusive distribution agreement with South Korea’s Doosan Infracore Co.
Ltd.
• Developed differentiated products for foreign geographies, such as the cranes and backhoes for
focused markets
• Enhanced after-sales focus for optimizing the product life cycle.
• Creating product differentiation to improve the value proposition for the customer.
• Launching niche products with application focus.
• Disrupting the market by introducing new products and variants with the aim to create new
segments
• Improving the product mix to improve contribution
• Up selling in strong and opportunity international markets
STRATEGIC ADVANTAGES

• Cost Focus: The division emphasizes on improving both back-end optimizing design and
harnessing synergies emanating from other Escorts divisions. Value engineering at the back-end,
while workforce optimization and effective market distribution models, at the front-end, together
lower costs. Commonality across our best-in-class products (axles, transmissions, engines and
motors) mitigates risks and leads to economies of sourcing.

• Solutions-oriented Offerings: The business consistently upgrades the existing portfolio and
launches application-based customized equipment variants. ECE endeavors to create new
segments and plugs the gaps in offerings, increasing the value proposition for customers and
catering to market demand

• Customer Focus: Escorts strives to be a preferred partner for customers and delivers the best
possible post-purchase solutions, including preventive maintenance. ECE’s service reach
includes 65 dealers and 120 customer touch points, with plans to expand customer touch points
on a continual basis.

• Capacity Up gradation: With de-bottlenecked manufacturing operations and engineering

processes, ECE possesses the capacity to respond to growing demand. Investment in fabrication
and vendor capacity enhancement further propels expansion.

Manpower Planning

Manpower planning is a key input to the recruitment process. The objective of manpower
planning is to determine the human resource needs of the organization and secure qualified
people to meet those requirements both through internal and external recruitment. Manpower
productivity and staffing norms will form the basis of manpower planning process, since these
will help set standards while forecasting manpower requirements.

The following schematic outlines the various stages and timeliness for the Manpower Planning
process of the Company:

1. Manpower forecasting- Initiated by individual departments. Departments fill out the

forecasting form as per projected estimates for the year and send it to HR.
2. Manpower Gaps -HR calculates the gap between the current and projected numbers.

3. Manpower Budget- HR prepares manpower plans for the year captures data about the required
number of personnel in the terms of grades, skills, roles and locations.
4. Approval by management

5. Requisitions- Department Heads send out Manpower requisitions as per the standard
recruitment time.
 6. Annual Resourcing Plan- HR plans the methods/strategies for fulfilling the planned gaps.

7. Recruitments- Recruitment against the specific requirements.

8. Manpower Inventory- HR prepares a manpower inventory, taking into account the

existing manpower in terms of grades, roles and locations.

The overall annual business plan for the Company will be broken down into plans and targets
for each individual department. Each department will calculate their grade wise manpower
requirements based on the staffing norms, and provide quarterly and monthly manpower
requirements to corporate HR.

Manpower Inventory- HR will prepare the current manpower status of each department,
including an analysis of the current manpower at each location, grade and skill summary.

Identifying Manpower Gaps- The existing number of employees and their skill levels will be
compared with the forecasted requirements to identify qualitative and quantitative gaps.

Manpower Plans On the basis of the identified gaps, HR will prepare an overall manpower plan
which provides adequate lead time for transfers, retaining, promotions and external hiring. The
plan will also contain details on:
Department wise number of transfers, retaining and promotions and department wise number of
external recruitment.

The final manpower plan will be prepared. Once completed, it will be put up for approval by all
department heads and the Managing Director.
SWOT ANALYSIS

Strengths

 Superior machine vis-a-vis competition.

 The strength of ECEL lies in its strong network, it has nationwide dealer network of
above 45 dealers and has overseas. It has also 12 business centres located at all strategic
point. It has the widest distribution network in India.

 Their product of high quality developed with latest and imported technology. ECEL has
tie up with a number of reputed companies.

 Their product range is also very large in Pick ‘n’ Carry cranes. And they are the new
entrant in Backhoe loader which manufactured and assembled with the latest technology.

 ECEL is backed by a strong and reputed Escort Group. This has got its own brand image.

 ECEL has entered in the field of material handling equipment in 1971 since then they
have got experience of around 35 years. ECEL has since emerged as the world largest
manufacturer of Pick ‘n’ Carry hydraulic mobile cranes.

 It also has good man power with Experienced & talented professionals.

Weakness
 ECEL had not entered into whole construction equipment industry. Their main focus is in
Cranes, Compactors, Loaders & Forklifts.
 According to the customer survey, ECEL customers are not happy with after sales
service. From their point of view, servicing doesn’t happen on time.

Opportunities

 Scope of increase in market share due to emergence of new markets

 Potential of increase in sale because of increasing concern an environment safely among

the organisation.

 Government is paying more attention towards improving the infrastructure.

Threats
 In 1991 Indian adopted globalisation from them the bigger MNC’s are coming and
setting up their manufacturing base in India. It is a major threat for existing players. They
have strong financial backups and it became a difficult for domestic firms to compete
with them.
 The industry is quite fragmented, in which small player play a very important role. The
built customized products with cheaper quality techniques. They are eating up the market
share of bigger players.
FINANCIAL HIGHLIGHTS

(in crores) March’19 March’18 March’17 March’16

INCOME
Net sales turnover 6196.36 4995.12 4093.16 3366.76
Other income 80.85 59.41 43.46 55.82
Total Income 6277.21 5054.53 4136.61 3422.59
EXPENSES
Stock adjustment -203.62 -22.78 -49.66 -25.70
Raw materials 4040.28 3147.8 2597.96 2138.74
Power and fuel .00 .00 .00 .00
Employees expenses 47.74 431.08 438.99 399.35
Administration and selling .00 .00 .00 .00
expenses
Research and development .00 .00 .00 .00
expenses
Expenses capitalized .00 .00 .00 .00
Other expenses 1154.67 881.8 782.16 677.64
Provision made .00 .00 .00 .00
Total expenses 5463.07 4437.91 3769.45 3190.03
Operating profit 733.29 557.21 323.71 176.73
EBITDA 814.14 616.62 367.17 232.55
Depreciation 85.37 72.48 63.07 57.50
EBIT 728.77 544.14 304.10 175.05
Interest 18.48 28.57 31.11 49.54
EBT 710.29 515.58 272.99 125.51
Taxes 237.52 164.09 75.61 12.50
PROFIT AND LOSS 472.77 351.48 197.38 113.02

Total income has risen to 6277.21 Cr. which is 24.18% more than the previous financial year.
Also there is rise of 33.92% in expenses before interest and taxes which is 728.77 Cr. Profit after
taxes (PAT) was Rs 484.91 crore for the financial year 2018-19 as compared to Rs 344.72 crore
reported in the last fiscal, registering a year-on-year growth of 40.7 per cent. Profit for quarter
ended March 2019 was up by 7.8 percent at Rs 121.4 crore as against Rs 112.5 crore in the
corresponding quarter last year. The revenue of the company stood at Rs 1,631.7 crore in Q4FY19
from Rs 1,436.10 crore in Q4FY18, registering a growth of 13.6 per cent. The operating profit
for the March quarter climbed 9.2 per cent year-on-year to Rs 189.8 crore.