Meezan Bank recently organized a conference for the vendors of Millat Tractor Limited for promoting and creating awareness about the US $50 million ‘Corporate Vendor & Distributor Finance Program’ launched in collaboration with Karandaaz Pakistan. This conference forms part of the tripartite agreement between Meezan Bank, Karandaaz Pakistan and Millat Tractor Limited signed in June this year, aiming to provide financial access to small and mid-size automotive part vendors in the country.
Under this agreement, Millat Tractors, along with Meezan Bank and Karandaaz Pakistan, will provide 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. By virtue of this program, Millat’s supply chain and distribution channels shall grow considerably.
Meezan Bank was represented by Mr. Faisal Iqbal – Regional Corporate Head, Mr. Faisal A. Malik – Head of Supply Chain Finance Program and Mr. Ahmed Ali Siddiqui – Head of Product Development & Shariah Compliance. Meezan Bank’s team informed the participants about the various financing structures that can be used to meet their financing needs and also help them identify the steps needed to improve their eligibility for the program.
Speaking at the conference Ms. Huma Khalid, Principal Credit -Karandaaz Pakistan, highlighted that in order to remain sustainable in the emerging trend of consolidation in supply chain, SMEs would need economies of scale and upgradation in technology. This program has specifically been designed to provide timely growth capital to SMEs to ensure their growth, increase the SME capital asset base, and improve employment generation.
Mr. S M Irfan Aqueel, CEO Millat Tractors Limited greatly appreciated the efforts of the sponsors in launching this initiative and reaffirmed Millat Tractor’s commitment to the program. He said, “Easy access to finance will help SMEs develop and equip themselves to meet emerging challenges as well as capitalize on the opportunities available in the market. Millat takes pride in being a partner in this journey of creating an enabling environment for SMEs.”
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 Excellenceby“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 Karandaaz Pakistan
Karandaaz Pakistan (www.karandaaz.com.pk), a Section 42company established in August 2014, promotes access to finance for small businesses through a commercially directed investment platform, and financial inclusion for individuals by employing technology enabled digital solutions. The Company has financial and institutional support from leading international development finance institutions; principally UKAid’s Department for International Development (DFID) and the Bill & Melinda Gates Foundation. The Consultative Group to Assist the Poor (CGAP), a member of the World Bank Group, managed the start-up phase of the Company and continues to provide technical support.
The Company has three work streams, Digital Financial Services, Corporate Investment and Credit and Knowledge Management and Communications. The Corporate Investment and Credit line of business of Karandaaz provides wholesale structured credit and equity-linked direct growth capital investments in small and mid-size enterprises with compelling prospects for sustainable growth and employment generation in Pakistan. Karandaaz Pakistan is sponsored and governed by eminent Pakistanis, and is managed by an experienced team with core expertise in international investment management and digital finance.