Millat Tractors Limited partners with Karandaaz Pakistan and Meezan Bank to promote SMEs in the Automotive Industry in Pakistan
Millat Tractors Ltd. (Millat) recently signed a corporate partnership agreement with Karandaaz Pakistan and Meezan Bank to help provide financial access to small and mid-size automotive part vendors in the country. This tripartite partnership is part of the USD 50 million Corporate Vendor and Distributor Finance Program launched recently by Karandaaz Pakistan and Meezan Bank. Through this capital investment and expansion working capital financing opportunity, Millat’s supply chain and distribution channels shall grow considerably. As per the agreement, Millat, along with Meezan Bank and Karandaaz Pakistan, shall identify and direct credit to vendors and distributors with good growth potential and sound operating and credit history thus facilitating the localization of automotive parts and broad based employment growth in Pakistan.
Senior representatives from the three partner companies were present at the signing ceremony held at Millat Group office in Lahore.
Mr. Ali Sarfraz Hussain, CEO Karandaaz Pakistan commended the partnership and said,
Karandaaz Pakistan in its goal to achieve greater financial inclusion in Pakistan places substantial importance on providing SMEs with enhanced access to finance. This corporate framework agreement with Millat Tractors is further testament to this promise. Their support and commitment to this Program is truly laudable.
Mr. Asad Azfar, CIO Karandaaz Pakistan highlighted the innovative features of the Program designed to leverage the visibility and influence of apex Corporates on their supply chains to enable cash flow driven term lending to small and mid-size vendors and distributors. Millat Tractors was the pioneer of vendor development in the auto industry in Pakistan and their participation and confidence in the Program is very encouraging and exciting.
S M Irfan Aqueel, CEO Millat Tractors Limited while appreciating the efforts of the sponsors to this program said,
Millat being the pioneer of vendor development in Auto industry has always taken lead in creating an enabling environment for development of the SME sector. Easy access to finance will help the SME’s to develop and equip themselves to meet the emerging challenges.
Mr. Ariful Islam, Deputy CEO, Meezan Bank while highlighting the importance of financial rationing for SMEs said,
Pakistan’s SME sector has the potential to serve as a key competitive source. The performance, nurturing and growth of SMEs however are highly dependent on their access to multiple financing solutions. With Millat’s support, this unique Program shall have a greater potential to expand, providing small and mid-size vendors with more access to finance.
Millat Tractors Limited (MTL), an ISO 9001:2008 certified company is Pakistan’s leading engineering concern in the automobile sector engaged in the manufacturing and marketing of world renowned Massey Ferguson (MF) tractors under licensing agreement with AGCO Ltd. UK; Forklift Trucks under license from Anhui Forklift Trucks, China; Diesel Engines; Diesel Generating Sets and a range of allied agricultural and industrial implements.
MTL has an unmatched, elaborate and extensive field network spread throughout the country. This network comprises of 72 main dealers, 61 spare parts dealers and more than 400 authorized workshops where MTL trained technicians provide efficient after- sale service to its customers.
With more than 60 % share of the local tractor market, MTL has integrated and consolidated its technical know-how, expertise and sizable investment in allied industries to ensure adequate supplies of quality components by way of establishing 4 sister concerns. These companies, part of the Millat Group include Millat Equipment Limited, engaged in the manufacturing of power train parts, Bolan Castings Limited that manufactures precision castings for the automotive industry, Millat Industrial Products Limited manufactures automotive batteries and TIPEG Intertrade DMCC promotes worldwide trade of Millat Group of Companies and the vendors associated with it.
Millat Tractors has been recognized internationally by Plimsoll- UK and has nominated MTL as 16th largest company with exceptional performance in Global Tractor Manufacturing Industry. Forbes Global magazine has included MTL in “Asia’s 200 Best Under a Billion Dollar Companies”. Karachi Stock Exchange has ranked MTL 3rd among top 25 Companies of Pakistan in 2014. In 2015, MTL was awarded Certificate of Excellence by “Management Association of Pakistan”. The company has also received achievement award in “Tractor & Agriculture Implements” sector by FPCCI in 2016.
The Company has entered into export agreement with its principals, M/s AGCO in Dec 2015. Now, Millat produced Massey Ferguson tractors are being exported to African & Middle Eastern countries which is a great achievement in itself and pride for Pakistan. This also reflects the quality and price competitiveness of Millat produced Massey Ferguson tractors.
About Meezan Bank
Meezan Bank is among the leading Banks in the country. The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of more than 550 branches supported by a countrywide network of over 500 ATMs, VISA and MasterCard Debit cards, a 24/7 Call Center, Internet Banking and Mobile Banking facility.
Meezan Bank has consistently been recognized as the Best Islamic Bank in Pakistan by numerous local and international institutions, which is a testimony of the Bank’s commitment to excellence. These institutions include Islamic Finance News – Malaysia, Global Finance magazine – New York, Asset AAA – Hong Kong, Asiamoney – Hong Kong, The Banker – United Kingdom and CFA Association – Pakistan.
The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA (Double A) and short-term rating at A1+ (A One Plus) with stable outlook. The rating indicates sound performance indicators of the Bank. Meezan Bank is the only Islamic bank with AA credit rating in the Islamic banking industry in Pakistan.