“Contribution of ACI Motors to the

agricultural development of
Bangladesh”
REPORT OF MBA PROGRAM , FACULTY OF BUSINESS STUDIES , UNIVERSITY OF D HAKA. 6TH OCT’16
 Letter of Transmittal

6th October, 2016

To

Prof. Mojib Uddin Ahmed Ph.D.

Professor

Dept. of Tourism & Hospitality Management

University of Dhaka

Subject: Submission of the Internship Report on ACI Motors.

Dear Sir,

It is my great pleasure that we submit the internship report on “Contribution of ACI Motors
to the agricultural development of Bangladesh”

It was complicated topic to work because I didn’t have any prior knowledge about this
Agrimachineries Industry. But at the same time it was also a very interesting topic to
work. By doing internship at ACI Motors I have learned about the business strategy of an
Industry which was totally unknown to me. Working on this report also has given me a
good opportunity to apply my theoretical knowledge in the practical field.

I have tried my best to follow your guidelines and prepare this internship report in a
professional manner. But, obviously, there is also much scope of improvements. I hope that
you will consider my mistakes and lacking as a subject of learning. Your valuable feedback
will help me a lot in making this kind of report in future.

Sincerely yours,
Abdul Halim
ACKNOWLEDGEMENT:

At first I would like to thank the almighty Allah for giving me opportunity to
successfully complete my Internship Report. Then I would like to thank my Supervisor Mr.
Asif Faisal Rumy, Assistant Sales Marketing Manager, ACI Motors for teaching me all the
things that I needed to perform my work. After that my Sincere thanks goes to my
supervisor Prof. Mojib Uddin Ahmed,Ph.D. for giving me valuable feedback and proper
guideline to make a better report.

At last, I would like to thank all the executives, Managers, General Managers & Chief
Business officer of ACI Motors for providing me all kind of support during my internship
period.
DECLARATION OF SUPERVISOR:

This is to certify that the internship report on “Contribution of ACI Motors to the
agricultural development of Bangladesh” in ACI Motors ltd” submitted for the award of the
degree of Master of Business Administration from the Department of Tourism and
Hospitality Management, Faculty of Business studies, University of Dhaka, is a record of
research carried out by Md. Abdul Halim under my supervision. No part of this internship
report has been submitted for any degree, diploma, title or recognition before.

____________________

Professor Mojib Uddin Ahmed, Ph.D.

Professor,
Department of Tourism and Hospitality Management,
Faculty of Business Studies
University of Dhaka
DECLARATION OF THE STUDENT:

I do hereby declare that this internship report has been written by me during of 2016 under
the Valuable guidance of Saud Ahmed, Assistant Professor, Department of Tourism and
Hospitality Management, Faculty of Business studies, University of Dhaka, in fulfillment of
the requirements for the award of the degree of Bachelor of Business Administration (BBA).
I’m also declaring that I have not submitted this internship report for any degree, diploma,
title or recognition before.

____________________

Md Abdul Halim
Roll: 26
MBA 7th Batch
Department of Tourism and Hospitality Management
University of Dhaka
EXECUTIVE SUMMARY:

For the completion of my MBA Program I have done my 3 month internship at ACI Motors
Ltd. ACI Motors established in 2007 as a subsidiary business of ACI Limited. ACI limited is
one of the largest and renowned congloromates in Bangladesh operating their business in
diversified sectors. ACI Motors is now marketing around all kind of agro machineries
including Tractor, power Tiller, Pump, Diesel Engine, Rice Transplanter, Combine Harvester,
Rice & wheat Reaper, infrastructure development machineries, & automobiles. In my
Internship at ACI Motors I worked in sales Department under the direct supervision of
Assistant Sales Marketing Manager, Mr. Asif Faisal Rumy. In this time I worked in developing
& implementing DMS (Dealer Management System) App & DMS Dashboard with the help of
MIS Team of ACI limited. I also maintained the Social Media site of ACI Motors, ACI Water
Pump & YAMAHA Bangladesh. Apart from this I also worked with designing, developing &
implementing DMS Web App for YAMAHA motorcycles Bangladesh. I have also developed a
sound communication with sales force team & dealers. In this report I have included the
history of Bangladesh agricultural industries & use of agricultural machineries.
BACKGROUND OF THE REPORT:

As a student of Business Administration at University of Dhaka it is

essential that we apply our theoretical knowledge in the practical work field. For this
reason we have to done an internship in a particular organization and submit a report to
prove that during the period of internship we were able to successfully implement our
knowledge in the work of our particular organization. After successfully submitting
report, we complete our Post-graduation. I have done my internship in ACI Limited at
ACI Motors division.
 Table of Contents

1. BANGLADESH AGRICULTURE:.................................................................................................... 1

2. FARM MACHINERY INPUTS IN BANGLADESH AGRICULTURE:...................................................... 1

3. COMPANY PROFILE: ................................................................................................................. 2

3.1 ACI MOTORS LIMITED: ................................................................................................................ 2

3.2 MISSION OF ACI MOTORS: ........................................................................................................... 2
3.3 SPECIFIC OBJECTIVE OF ACI MOTORS: .............................................................................................. 2

4. PRODUCT PROFILE OF ACI MOTORS: ......................................................................................... 3

4.1 SONALIKA TRACTOR: .............................................................................................................. 4

4.1.1 HAULAGE: ..........................................................................................................................................4
4.2 POWER TILLER: ....................................................................................................................... 5
4.2.1 COMPARATIVE ANALYSIS: .......................................................................................................... 6
4.3 DIESEL ENGINE: .......................................................................................................................... 7
4.3.1 MODEL OF DIESEL ENGINE WITH HORSE POWER: ............................................................................. 8
4.4 WATER PUMP............................................................................................................................ 8

5. NEW MACHINERIES: ................................................................................................................. 9

5.1 REAPER: ................................................................................................................................... 9

5.1.1 COMPARISON BETWEEN MANUAL REAPING & MECHANICAL REAPING: ..........................................................9
5.2 RICE TRANSPLANTER:................................................................................................................. 10
5.2.2 COMPARISON BETWEEN MANUAL REAPING & MECHANICAL TRANSPLANTING: .............................................10
5.3 COMBINE HARVESTER: ............................................................................................................... 11
5.3.1 COMPARISON BETWEEN MANUAL REAPING & MECHANICAL HARVESTING: ..................................................11
5.4 POWER THRESHER: ................................................................................................................... 12
5.5 CROP PRESERVATION:........................................................................................................... 12
5.6 SERVICE & SPARES .................................................................................................................... 13

6. TARGET CUSTOMER OF ACI MOTORS PRODUCTS OR MACHINERIES: ........................................ 13

7. THE GROWTH OF AGRICULTURAL MECHANIZATION IN BANGLADESH ..................................... 14

8. RETURN OF USING AGRICULTURAL MACHINERIES: .................................................................. 16

8.1 BENEFITS OF AGRICULTURAL MECHANIZATION ................................................................................. 16

9. CONTRIBUTION OF ACI MOTORS: ........................................................................................... 17

9.1 DIRECTLY: ............................................................................................................................... 18

9.1.1 FREE SERVICE CAMP:..........................................................................................................................18
9.1.2 CUSTOMER FEEDBACK PROGRAM:........................................................................................................18
9.1.3 PRODUCT ORIENTATION & TRAINING: ...................................................................................................19
9.2 INDIRECTLY: ............................................................................................................................ 19
9.2.1 CONTRIBUTION ON FARMER’S PRODUCTION: ..........................................................................................20

10. THE SPREAD OF AGRICULTURAL MACHINES IN BANGLADESH: ............................................... 22

11. SPREAD OF NEW AGRICULTURAL MACHINERY:...................................................................... 23

12. SERVICE IS THE PART OF THE PRODUCT: ................................................................................ 25

13. ACTIVITIES:........................................................................................................................... 25

13.1 MARKETING ACTIVITIES: ........................................................................................................... 26

13.2 CORPORATE SOCIAL RESPONSIBILITY:........................................................................................... 27

14. AFTER SELL SERVICE SYSTEM OF ACI MOTORS: ...................................................................... 27

15. UNIQUENESS OF ACI MOTORS AFTER SALES SERVICE DEPARTMENT: ............... 28

15.1 PROVIDE MAXIMUM FREE SERVICE: ............................................................................................. 28

15.2 DOOR TO DOOR SERVICE: ......................................................................................................... 28

16. CONSTRAINTS AFFECTING MECHANIZATION OF ACI MOTORS: ............................................... 29

17. RECOMMENDATION: ............................................................................................................ 29

17.1 ESTABLISHED A SALES AND SPARE PARTS CENTER IN DHAKA: .............................................................. 29

17.2 STRONG MARKETING TEAM ...................................................................................................... 29
17.3 TAKE AGGRESSIVE PROMOTION ACTIVITIES: ................................................................................... 29

18. CONCLUSION: ....................................................................................................................... 29

19. REFERENCE: .......................................................................................................................... 30

 Table of Figure

Figure 1- Direct Contribution ..........................................................................................................................18

Figure 2-indirect Contribution ........................................................................................................................19
Figure 3-Percentage of employment in agriculture ........................................................................................21
Figure 4-Agricultural land in "000" acre ..........................................................................................................22
Figure 5-The Spread of Agricultural Machines in Bangladesh .........................................................................22
Figure 6-New Machinery in Bangladesh .........................................................................................................24
Figure 7-Promotional activities ......................................................................................................................26
Table

Table 1-Comparative Analysis ......................................................................................................................... 6

Table 2-Diesel Engine with Horse power ......................................................................................................... 8
Table 3-Comparison between manual reaping & mechanical reaping ............................................................. 9
Table 4-Comparison between manual reaping & mechanical Transplanting ..................................................10
Table 5-Comparison between manual reaping & mechanical Harvesting .......................................................11
 1. Bangladesh Agriculture:

Total cultivable land 8505278 Hectare

Total irrigated land 7124895 Hectare
Cultivable fellow land 204366 Hectare
Cropping Intensity (%) 190
Agriculture contribution on GDP 16.33%
Total cereal production Rice : 33833603 M ton
Wheat : 1254778 M ton
Maize : 1547719 M ton

2. Farm Machinery Inputs in Bangladesh Agriculture:

Contribution of ACI Motors to the agricultural development of Bangladesh 1

3. Company Profile:
3.1 ACI Motors Limited:

ACI Motors start its operation from 6th November 2007 as a

subsidiary of ACI Agribusiness with an objective to market high quality farm
machineries like: Tractor , Power tiller diesel engine etc.

3.2 Mission of ACI Motors:

To provide complete farm mechanization solution to the farmers.

3.3 Specific objective of ACI Motors:

 To become the market leader in the tractor industry of Bangladesh by 2016

 To introduce new agricultural Machineries and related commodity for farmer

It has own sales and service center at Bogra, Comilla, Jessore,Barisal,Gazipur,Rangpur

,Sylhet and Dinajpur by which ensure highest quality after sales service, repairs and
spare parts. It also provides flexible credit facilities for farmers for better customer
satisfaction and service. ACI Motors are planning to introduce light commercial vehicles
like pickups and mini trucks to support farmers to carrying agricultural goods. Also, high
quality diesel engines and pumps for irrigation purpose will be offered in the near future.
This business shows considerable promise in contributing to the agricultural productivity
of Bangladesh.

Contribution of ACI Motors to the agricultural development of Bangladesh 2

4. Product Profile of ACI Motors:
ACI Motors offers following product or agrimachineries to the farmers in order to
provide them a better solution in cultivation.

ACI Motors

Agri- Specialty
Machineries Segments

Tractor
Construction YAMAHA
Equipment Motorcycle
Power Tiller

CASE
Diesel
Engine
SCHWING
STETTER
Water Pump
ESCORTS
New
Machineries

Crop
Preservation
Service

Contribution of ACI Motors to the agricultural development of Bangladesh 3

4.1 SONALIKA TRACTOR:
Sonalika Tractor, introduced by ACI Motors in 2007 is the most reliable tractor due to its design
and superior after-sales service guarantee. Manufactured using modern technology, Sonalika
tractors are the optimum choice for cultivation and haulage in Bangladesh. Sonalika tractors
outperform other tractors of same Engine Horse Power, in all aspects; they can carry more
weight and cultivate more land. Their high quality powerful engines ensures continual
performance and do not require repairing for a long time. Our country-wide outstanding service
network provides on the spot service in only 6 hours.

4.1.1 Haulage:
Sonalika Tractors are the perfect combination of power and performance. They have more
speed, thus they can make more trips and increase income. The powerful engines enable them
to carry any heavy materials such as bricks and rods, even in rough terrains.

Contribution of ACI Motors to the agricultural development of Bangladesh 4

Powerful Hydraulic
MORE BETTER BUMPER MORE
Cultivates More Land CULTIVATION FINISHING PRODUCTION
INCOM
In Less Time E

In 6 Hours, On The Spot Service Guaranteed!

4.2 POWER TILLER:

ACI Power Tillers are the only ones in Bangladesh that are specifically suited for the unique soil
condition of our country. They have powerful engines with more Horse Power and larger blade
sizes that increase rate of cultivation by 20%. With 1 inch larger blades, they can penetrate
deeper into the soil, resulting in more crop production.

The customized technology, low-cost of operation, ease-of-use and durability ensures superb
performance and value for the long haul.

 The Brass radiator prevents rust and keeps the engine cool, it is easy to weld
 Dual- Fuel Filter ensures purity of the oil
 Fitted with 4 Kg heavier Chassis and additional syn-fuel, which can endure tremendous
vibration
 Iron wheels with 10 sprockets and 20 bits
 R 24 has 8 mm glass wires, instead of standard 4 mm
 Equipped with High-quality, durable Rotary chain, which does not malfunction or break
easily
 Air Cleaner with more height, keeps away dust and mud, protecting the engine
 Securely screwed seat instead of welding, which makes it stronger and long-lasting.

Contribution of ACI Motors to the agricultural development of Bangladesh 5

4.2.1 Comparative Analysis:

Regular R 24 Kubota

Probable Price Tk. 1,20,000 1,40,000 1,80,000

Daily Cultivation ( 8hours ) 4 Acre 5 Acre 5.5 Acre

Daily Income ( Tk.750/Acre ) Tk. 3000 Tk. 3750 Tk. 4125

Fuel Tk. 612 (9 Ltr.) Tk. 612 (9 Ltr.) Tk. 476 ( 7 Ltr.)

Driver Tk. 400 Tk. 400 Tk. 400

Daily Expenses Maintenance Tk. 50 Tk. 50 Tk. 50

Depreciation Tk. 571 Tk. 571 Tk. 321

Total Tk. 1633 Tk. 1633 Tk. 1247

Daily Net Income Tk. 1367 Tk. 2117 Tk. 2878

Annual Net Income Tk. 96,608 Tk. 1,48,160 Tk. 2,01,430

Return 80% 106% 112%

Minimum Duration 2 years 2 years 4 years

Total Net Income Tk. 1,91,320 Tk. 2,96,320 Tk. 8,06,720

Table 1-Comparative Analysis

Contribution of ACI Motors to the agricultural development of Bangladesh 6

4.3 Diesel Engine:

ACI Diesel Engines are designed to improve your performance and productivity. We have a
large range of engines that can be used for power generation activities in agriculture, brick-
fields and transportation.

Our engines are used in dredging, generators, oil machines, Nasimon, Korimon, trolley, power
thresher, hand power tiller, boats etc. and even in heavy duty activities.

Contribution of ACI Motors to the agricultural development of Bangladesh 7

4.3.1 Model of Diesel Engine with Horse power:

Models with 4 -10 Engine H.P. Models with 12 - 32 Engine H.P.

ACI CD HP ACI GN HP ACI DF

Hand-starting, 160-220 Kg, 2200rpm HP
Fuel Consumption < 238 – 271.2 g/Kwh
R170A CD 4 S1100 GN 16 S 195 DF 12
Water-cooled Water-cooled Water-cooled
Z160F CD S1100NL GN 16 S1100 A2 DF 16
Water-cooled Water-cooled
Z170F CD Spring Type 4 S195 GN 12 S195 NL DF 12
Air-cooled Water-cooled Condenser
ACI CF S195 L GN 12 ZS1110 DF 20
Water-cooled (With Light) Water-cooled
R175A CF 6 S195 NL GN 12 ZS1115 DF 25
Water-cooled Radiator Water-cooled
R180 CF 8 ZS1100 GN 20 ZS1125 DF 28
Water-cooled Water-cooled Water-cooled
R185 CF 8 ZS1115 GN 25 L32 32
Water-cooled Water-cooled Water-cooled
ACI EM

EM185 8.5
Water-cooled
EM185NL 8.5
Water-cooled
EM190 10
Radiator (Light)
Table 2-Diesel Engine with Horse power

4.4 Water Pump

Manufactured using the latest technology, ACI water pumps ensure efficiency. Equipped with
100% copper wire coil and the appropriate engine horse power, ACI water pumps are reliable
and long-lasting. They have 100% brass impaler and high-quality bearings making them
soundless and auto thermal protector. They also have Stainless steel shaft and good quality
capacitor which can endure extreme heat.

We have Submersible Pumps ranging from 0.33 - 5.50 H.P. and 4 portfolios of Surface pumps-
ACI Jet Water Pump (ranging from 0.50 – 2.00 H.P.), ACI Centrifugal Pump (ranging from 1.50 –
3.00 H.P.), ACI irrigation Pump (ranging from 1.00 – 3.00 H.P.), Double Jet Pump (1.00 H.P.) and
Peripheral Pump (0.50 H.P.).
Contribution of ACI Motors to the agricultural development of Bangladesh 8
5. NEW MACHINERIES:
5.1 Reaper:
For harvesting rice and wheat, ACI Motors has introduced ACI Reaper, imported from Vietnam
and Taiwan. It has 5.5 – 6.5 H.P. HONDA Engines that runs on Petrol and fitted with tubeless
tires. It weighs 155 kg and can perform even in low muddy or water-filled lands. It is easy to
operate and requires no training.

ACI Reapers have a cutting width of 4 rows and can harvest 1.Acre of land in one hour,
consuming a liter of fuel only. The cutting height can be adjusted 6-35cm. ACI Motors give 1
year of Warranty with free after sales service.

5.1.1 Comparison between manual reaping & mechanical reaping:

Particulars Reaper Traditional

Labour 1 person 8 person
Time 1 hour 8 hours
Cost Tk. 255 (Labor Tk. 100 + Petrol Tk. 2000 ( Labour Cost - Tk. 250
Cost Tk. 100 + Depreciation Tk. per day)
55)
Savings Cost : 75%, Time: 82%, Labour:
80%
Table 3-Comparison between manual reaping & mechanical reaping

Contribution of ACI Motors to the agricultural development of Bangladesh 9

5.2 Rice Transplanter:
To reduce the labor shortage problem, ACI Motors has introduced ACI Rice Transplanter, both
walking type and riding type. It has 4 rows and can transplant 1.5 Bighas of land in one hour,
consuming 500 ml of fuel only. Each tray carries 120-150 gm of seeds, 20 trays required each
bigha of land.

5.2.2 Comparison between manual reaping & mechanical Transplanting:

Rice Transplanter Traditional

Labour 2 person 17 person
Time 1 hour 8 hours
Cost Operations 100 Tk. 5400
Fuel 350
Maintenance 100
Transportation 250
Others 500
Total 1300
Savings Cost : Tk. 2970 ( 75%), Time:
81%, Labour: 88%
Table 4-Comparison between manual reaping & mechanical Transplanting

Contribution of ACI Motors to the agricultural development of Bangladesh 10

5.3 Combine harvester:
These machines can reap, thresh, harvest and package rice & wheat in one operation. It can
save crops by swift harvest during natural calamities.

5.3.1 Comparison between manual reaping & mechanical Harvesting:

Combine Harvester Traditional

Labour 1 person 27 person
Time 1 hour 8 hours
Cost Tk. 430 (Labor Tk. 200 + Petrol Tk. 3400 ( Labour Cost - Tk. 200
Cost Tk. 130 + Depreciation Tk. per day)
100)
Savings Cost :74%, Time: 87%, Labour:
92%
Table 5-Comparison between manual reaping & mechanical Harvesting

Contribution of ACI Motors to the agricultural development of Bangladesh 11

5.4 Power Thresher:
For the threshing of rice and wheat, ACI Motors has introduced ACI Power Thresher,
manufactured using local technology. The machine comes in three designs – Head Feed Type
Open Drum, Close drum Power Thresher and Tractor Operated Thresher.

Equipped with wheels, transportation is easy. Preserves the nutritive quality of the seeds,
separation rate is 98%. Operation and maintenance is relatively low cost. Belt and other moving
components are covered, ensuring safety of the operator.

5.5 CROP PRESERVATION:

For the preservation of Rice, Wheat and other grains ACI Motors has introduced unique
technologies that can reduce economic loss and preserve dry agri-products using improved
techniques.

 No harmful preservation Chemicals required to be applied.

 Easy Transportation.
 No separate infrastructure required.
 Durability more than 10 years.
 Works effectively in all types of weather.
 Unique Design resistant to rat and similar animals.
 Insects die due to lack of Oxygen.
USES:

Contribution of ACI Motors to the agricultural development of Bangladesh 12

  Crop can be preserved in any type of bag or sack. Rice, Wheat, Pulses, Chilli, Dry Fruits
can be preserved.
 GrainPro Cocoon
 GrainPro Collapsible Dryer
 Suncue Batch Dryer
 Flat Bed Dryer.

5.6 Service & Spares

We guaranty on the spot service in 6 hours only. Our highly trained manpower of 100 service engineers
and technicians are provided with motorcycles for mobility in all terrains. We have regular training
programs to make sure our technicians are adapted with the latest technologies. We also arrange
international training sessions in manufacturing plants of our products to ensure ultimate service
quality. For relationship building, free service camps, demo programs and driver trainings are regularly
arranged.

We have developed online service tools to monitor and evaluate our service programs. We have a
customer hotline to solve any queries and receive service requests.

We have eight own & four authorized 3S (Sales, Service and Spares) centers. We have 55 authorized
parts center to make certain spare parts availability throughout the country. For the power tiller
portfolio, ACI branded spare parts are available

6. Target customer of ACI Motors Products or Machineries:

An ACI motor has targeted different class or group pf people for their different product or
machineries. Science the price of tractor, power tiller combine harvester and Rice
transplanter is quite and it is quite hard for an individual farmer to buy. For this reason ACI
motors have targeted specific group of people. Like:--

Contribution of ACI Motors to the agricultural development of Bangladesh 13

  Solvent farmers in a specific village who has quite a good amount land or under
which lots of small farmers works.
 Businessman who want to invest money in new sector.
 People who return from different foreign country and want to do a profitable
business.
 Different NGO’S who work with farmers like: Asha, Dipsikha BRAC etc.
 Dealers of ACI Seed, Fertilizer (especially for Power tiller, Rice cutter, Diesel engine
and sprayer)

However, price of Rice cutter, Diesel engine and sprayer is affordable to individual farmer.
So, for selling these products individual farmers are also targeted by ACI Motors.

7. The Growth of Agricultural Mechanization in Bangladesh

Bangladesh has the globe’s highest per-capita level of rice consumption at 172.6 kg person
year (FAOSTAT, 2015). The government of Bangladesh (GoB) has tended to encourage
mechanization as an avenue to increase rice production and move towards rice self-sufficiency.
To facilitate this process, the GoB voluntarily reduced import restrictions and tariffs on select
machineries, while also supplying subsidy to help purchasers offset fixed costs (GoB, 1999). The
GoB first introduced irrigation pumps and tractors in the 1960s (Ahmed, 2001). Four wheel
tractors were initially promoted, which are arguably scale-inappropriate in Bangladesh given
the small average farm size at around 0.53 hectares, which is often divided into multiple fields,
making demand aggregation for tillage services among farmers, and between-field and -farm
transport of tractor equipment problematic. The GoB also first introduced centralized
irrigation facilities by establishing deep tube wells (DTWs) and supplying low-lift irrigation
pumps (LLPs) to farmers on a rental basis from the Bangladesh Agricultural Development
Corporation (BADC). The GoB also supplied fuel at 75% subsidized rate to pump owners
through BADC until the 1970s. By 1978, BADC had rented out and managed a total of 9,000
DTWs and 35,000 LLPs (IDE, 2012).

Contribution of ACI Motors to the agricultural development of Bangladesh 14

Irrigation and land preparation management under nearly complete government control
however presented large logistical and financial burdens. Eight years after independence,
Bangladesh undertook liberalization policies, and as a result, the government gradually opted
out of state-led support of mechanization and began the privatization of irrigation, with
additional efforts to open markets for land preparation equipment (Gisselquist et al., 2002).
BADC initiated sales to liquidate DTWs and LLPs to farmers’ cooperatives and also to individual
farmers, many of whom became service providers. Privatization, however, only gained full
momentum when a number of tariff and non-tariff barriers on the import of irrigation and
diesel engines and tractors were eliminated, actions that were linked to disaster response
management by the Bangladeshi government.

On November 29, 1988, a cyclone with wind speed of more than 150 kilometers impacted
Bangladesh (UNDRO, 1988), taking a major toll on human lives, while also reducing the
draught oxen and buffalo population used for land preparation, with the deficiency estimated
at approximately 5.8 million animals, equivalent to approximately 132,000 tractors (GoB, 1989).
During this period, the GoB’s Standardized Committee was responsible for controlling the
quality of imported machinery, including agricultural equipment. They did so by advising the
import of high-cost Japanese tractors, pumps, and engines, while discouraging more affordable
Chinese made machinery thought to be of comparatively lower quality (Justice and Biggs,
2013). the urgency resulting from the cyclone and consequent threat to food insecurity
however prompted the GoB to reconsider such policies. In 1988, President Hussain
Muhammad Ershad voluntarily eliminated most of the major import tariffs on standardized
diesel engines and two-wheeled tractors, in order to facilitate the broader availability of two
wheel tractors and the associated 8-16 HP Chinese engines that drove them. In the next step,
President Ershad disbanded the Standards Committee, to facilitate the rapid import of
comparatively inexpensive diesel engines and two-wheeled tractors from China (Justice and
Biggs, 2013). Six years later, the import of two- wheeled tractors was made completely duty
free (IDE, 2012).

These actions resulted in a drastic increase in imports of small diesel engines for mechanized
irrigation and land preparation. The number of shallow tube wells (STWs) used for irrigation
increased from 93,000 in 1982 to 260,000 in 1990 (IDE, 2012). Currently, more than 550,000
two-wheeled tractors, the vast majority of which are made in China, are used to prepare 80%
of Bangladesh’s cropland (IDE, 2012; Ahmmed, 2014). A total of 1.63 million of STWs, DTWs
and LLPs are also used to irrigate (BADC, 2013) nearly 55% of all cropland (BBS, 2011). The
impact of these actions, in combination with other measures, appears to have had a dramatic
Contribution of ACI Motors to the agricultural development of Bangladesh 15
impact on increasing Bangladesh’s cropping intensity, or the number of crops grown per unit of
land per year. This is acknowledged to have been partly attributable to the spread of irrigation
(Hossain 2009), and which can be observed in national statistics (Figure 5) that indicate that
cropping intensity appeared to be stagnating until the late 1980s, and then began to gradually
but steadily increase as result of these actions.

8. Return of Using Agricultural Machineries:

Agricultural Mechanization, agricultural areas to develop all kinds of agricultural produce and
agricultural products evaluation process to fulfill objectives used with all kinds of energy
sources, mechanical tools and equipment design, construction development, distribution,
marketing, publishing, education, operation and use-related issues is included.

Agricultural mechanization is a production technology. In some countries, different levels of

mechanization and application development are. This difference can be monitored, especially in
the agricultural business. In other words, mechanization, agricultural business in each business,
depending on the technical and economic structure is being implemented at different levels.

8.1 Benefits of Agricultural Mechanization

1. To enable the new technology in production applications.

2. Production is dependent on natural conditions as possible to recover and to get more

qualified products.

3. Manufacturing operations in the most appropriate time to complete, without delay to avoid
losses resulting product.

4. Working conditions in rural areas more comfortable, attractive and safe to bring a case and
agricultural workers to improve work efficiency.

5. On the one hand, increase in agricultural products, on the other hand, developments in
agricultural tools industry with the opening of new jobs to the area to allow.

Contribution of ACI Motors to the agricultural development of Bangladesh 16

6. Human and animal agricultural operations cannot be achieved with power to machine
power, and new areas for agriculture and managed to make up.

Agricultural mechanization is the number of these benefits, if the conditions are inappropriate
and unplanned walk into an application that mechanization is some disadvantages. Unwanted
as the mind can sort.

1. All agricultural inputs for the largest share of mechanization have entered the car. Scale
mechanization is an important application, business plan creates installed costs.

2. Excessive mechanization result, unemployment in rural areas may increase.

3. Unplanned result of mechanization, the balance between agriculture and industry sectors in
the agricultural sector against damageable.

4. Usually based on vehicle fuel energy Mechanization works. Negatively impact the country's
overall energy balance plan for mechanization.

9. Contribution of ACI Motors:

From the establishment of ACI Motors it has been contributing our agricultural development in two
ways.

Contribution of ACI Motors to the agricultural development of Bangladesh 17

9.1 Directly:
First; because Bangladeshi farmers are not enough rich to buy agro machineries, so it’s tough to buy the
machineries for them. In this scenario, ACI Motors provides credit facilities to its dealers & installment
facilities to farmers. Besides this ACI Motors also provides training on appropriate using of machineries
so that farmers can get best return from the machineries. Company also provides some unique service
to its farmers.

New
Product &
training

Customer
feedback
program

Free service
camp

Figure 1- Direct Contribution

9.1.1 Free service Camp:

ACI Motors offers “Free service Camp” in all over district gradually & provides

1. Discount on booking product

2. Discount on purchasing spare parts
3. Free health check up
4. Free servicing for all machineries
5. Product Presentation

9.1.2 Customer Feedback Program:

ACI Motors often organizes program for Customer engagement & they take farmers feedback after using
their product & services. Most of the time, Management takes all the feedbacks, complaints &
suggestions for developing the product discussing with the manufactures. Besides this they also arrange
different religious get together along with customer to celebrate. They recently launched a Hotline for
getting customer feedback 24/7. Hotline number 16509.

Contribution of ACI Motors to the agricultural development of Bangladesh 18

9.1.3 Product orientation & Training:
Company often launches new product along with a gala program. They provide free training on how to
use machineries more effectively for more profitability. Company provides all kinds of spare parts to its
customer with reasonable price. Training helps farmers to use the machine accurately so that they can
have more return from it.

ACI motors launch new products in the agricultural sectors in Bangladesh like Reaper, Combine
harvester, Mini combine harvester etc. they creates new market for this machineries for the farmers
very first time in Bangladesh.

9.2 Indirectly:
Agricultural industry are grooming day by day in Bangladesh. ACI Motors introduces various kinds of
products in Bangladeshi farmers like Reaper & combine harvester. Beside this, company has also
ensured subsidies for the farmers on specific product like Reaper. Company also works as a
representative of farmers to the government & other NGO like TMSS. Company offers facilities to
different NGO so that they can help to farmers in rural area.

Government

Farmers

ACI motors

Figure 2-indirect Contribution

Contribution of ACI Motors to the agricultural development of Bangladesh 19

9.2.1 Contribution on farmer’s production:
Before using the reaper, rice harvesting per 1 ha took whole day with 8 people working on it.
Now with reaper, it just takes one hour with one person. It significantly reduced his labor cost
with more capacity to work. If we see few articles on the newspapers we can see that the main
problem is labor cost that is increasing day by day. The high labor cost is the main problem for
the farmers to bear expenses to make profit. With the current market scenario they cannot
afford high cost for the cultivation or sowing etc.

However, the actual farming was kept unchanged with traditional labor-intensive method.
Cultivating rice paddy with hoe, rice planting, removing weeds, harvesting, threshing, and rice
husking, all these farm work are done by hand. And these were the works of daily laborers and
poor women. It requires an enormous labor force to work on three cycles in a year.

But, this labor intensive-farm work is becoming difficult to keep. This is mainly caused by shift
of Bangladesh industrial structure. 37% of country’s GDP was from Agriculture in 1975, but it
declined to 20% in 2010 (jica.go), 16.33% in 2014 (bdnews24.com). This is the result of dramatic
shift of key industry from agriculture to secondary industry; especially to garment sector.
People in the village have moved to urban cities to seek better job.

Contribution of ACI Motors to the agricultural development of Bangladesh 20

 67
60
55
47.5
41

2001 2003 2006 2010 2016

Figure 3-Percentage of employment in agriculture

(Source) Decent Work country profile Bangladesh by International Labor office

This ratio express that the portion of workforce in the agriculture industry is declining & it will
be a burning issue for the agricultural industry in next few decades if we don’t progress with
the agricultural machinery support.

As a result, labor force in villages has declined significantly. A research conducted by

International Labor Organization (ILO) shows the population engaged in Agriculture in
Bangladesh has declined by 20 Percent in a decade during 2001 to 2016. This lead to increase of
labor cost in agriculture and nowadays it is difficult to find enough labor force. We even heard
that labor cost has increased fourfold in past five years. Agriculture in Bangladesh is suffering
from a serious shortage of workers.

Hundreds of years of traditional farm work have now reached to a major turning point.
Machinery usage in agriculture has begun. This movement has just started in a small scale, but
the wave of mechanization may change the whole land scape of farming in Bangladesh.

Contribution of ACI Motors to the agricultural development of Bangladesh 21

 93000
92800
92660
92500 92530 92460 92410

92000

91500
91280
91200
91000 91080

90500

90000
2006 2007 2008 2009 2010 2011 2012 2013

Figure 4-Agricultural land in "000" acre

(Sources) survey by ACI Motors Planning Team

On the other hand the land of agriculture is declining year to year. In this situation ACI Motors
provides machinery to increase the agricultural growth of production.

10. The Spread of Agricultural Machines in Bangladesh:

Usage of agricultural machinery has just begun in Bangladesh. According to JICA’s research,
among 40 million farmers through our country, only 1 % holds agricultural machinery. However,
it seems that momentum is stronger, beyond what we see in the statistics.

12000
10000
8000
6000
4000
2000
0
2010 2011 2012 2013 2014 2015

Power Tiller Tractor Diesel Enggine

Figure 5-The Spread of Agricultural Machines in Bangladesh

(Sources) Internal SDMS Software

Contribution of ACI Motors to the agricultural development of Bangladesh 22

The company was established in 2007 with local investment. Since the inception, the company’s
sales volume has increased steadily every year. Now, is has more than 20 million dollars of
annual turnover.

The company sells agriculture machineries to local farmers. The products include tillers;
harvesters, tractor and rice reaper and these are all imported from abroad.

Tillers from China,

Harvesters from Korea,
Tractor from Indian
And rice reaper from Philippine.

The company has eight sales offices nationwide with nice showroom each office.

According to the company, potential market size of agriculture machinery is around USD 600
million. The Company’s major product is power tiller which it sold 40,000 since the
beginning. They have also sold 120,000 diesel engine and 8,000 tractors. Combine which is
imported from Korea costs BDT 120,000 (around USD 17,000) and the Company sold 70 of them
already.

Throughout the country almost 40% of agricultural machineries are from ACI Motors. The
contribution of ACI Motors to the agricultural industry of Bangladesh is around 20%.

11. Spread of New Agricultural Machinery:

For the first time in agricultural industry Company has launched new machinery in the
agricultural sector of Bangladesh like Reaper, Harvester, Combine harvester, Mini Harvester,
Trans-planter etc. Company arranges subsidies for the farmers from the government on this
product.

A report presented during 3rd TAC Meeting of Asia Pacific center of agricultural Engineering &
Machinery held on Dec 2004 in Hanoi, Vietnam. Where they highlighted the demand of new
machinery in Bangladesh was
Contribution of ACI Motors to the agricultural development of Bangladesh 23
  Machines for Harvesting Rice & wheat.
 Machine for Transplanting Rice seeding.
 Equipment for corn shelling.
 Low cost & effective drying system for gains.
Because of high price in Bangladesh of these agricultural machineries farmers cannot afford this
& for this reason our farmers are losing their profit every year on high labor cost sometimes
shortage of labor. When there were around half of population were farmers in last decades but
now it has declined to 35-40% because of having loses in farming. With this scenario company
has launched these machineries in the agricultural sector of Bangladesh for the first time with
subsidies from government.

They are:

1. Reaper 2. Trans-planter
3. Harvester 4. Combine harvester

0 1 2
50

15
8 39 92
587

2011 2012 2013 2014 2015

Combine Harvester 2
Harvester 5
Transplanter 15 0 1 2 50
Reaper 4 8 39 92 587

Figure 6-New Machinery in Bangladesh

(Sources) ACI Motors Internal Database

Contribution of ACI Motors to the agricultural development of Bangladesh 24

The rice reaper costs Tk.12, 000 thousands (USD 1,700). In the case of rice reaper, Bangladesh
Governments gives subsidies of 30% of its sales price. Farmer will pay 50% upfront and rest of
the money will be paid in 6 month installment.

The buyers are not only rich farmers. The so called Local Service Provider who provides farming
services to the farmers as a business is the major buyers. With substantial reduction in labor
cost and improved productivity, local service providers can now make better profit. This gives
capacity to buy such agricultural machineries and payoff in short term. Company provides
credit facilities to these service providers.

12. Service is the Part of the product:

This company also put emphasis on after-sales services. They provide training for the buyers on
how to use the machine with operating manual, and they even provide free medical checkup
service for them. The company is trying to achieve loyalty from the customers as they are likely
to buy other products from the Company. In tractors they committed to provide service within
6 hours to the farmers around the whole Bangladesh. They have an organized service team
throughout the country that provides service 24/7. Even they provide one year replacement
guaranty for any kind of problem in the machines that cannot be solved. All the service
engineers are trained from importer country.

13. ACTIVITIES:

ACI Motors has a lot marketing activities throughout the year including social activities.
Company arranges a lot of program for the farmers in rural area like “Prity Football Match” at
Mohadevpur. In 2013 they arranged an Agricultural fair at Bangladesh agricultural University to
Contribution of ACI Motors to the agricultural development of Bangladesh 25
create awareness & inspiration among farmers & young generation. In 2008 they arranged
Agriculture fair at ACI Centre. In these all program & fair they always invited all popular
agricultural specialists & local Farmers.

13.1 Marketing activities:

Company provides various inspirational offers to the farmers as well as distributors. They
provide financial privilege to the poor farmers in local area. Best quality service & loyalty is their
main brand to promote with the machines. They often sit together with farmers & suppliers to
have feedback to change the product as the requirement of the farmers.

To promote the market they use word of mouth promotion from the customers. But with the
traditional trend they use

 Facebook
 TVC
 Leaflet
 Festoon

Facebook
2%

TVC
8%
Festoon
30%

Leaflet
60%

Figure 7-Promotional activities

Contribution of ACI Motors to the agricultural development of Bangladesh 26

13.2 Corporate Social Responsibility:
ACI Motors always beside the farmers all the time in any natural disaster or financial problem.
Company managed free cultivation or harvesting for the farmers with their modern equipment.
Company also provides EID gift to many farmers with packaging EID clothes & ACI Consumer
products. There is a helpline for the famers to inform about their problems & feedback about
the products & service.

14. after Sell Service System of ACI Motors:

In this Agriculture Machineries sector after sale service plays a vital role for building a
company’s reputation. Because of our country knowledge level of farmers or users about
using agriculture machineries is very low. For this reason ACI motors has built up a strong
after sales services and spare parts department headed with the service Manager, Service
Engineer, Service Coordination Executive, Senior and junior Mechanics. The main
objective of this department is to retain customer satisfaction. The total permanent
manpower of ACI Motor after sales service and spare parts department is 45. Apart from
these, ACI Motors also have some contractual mechanics. This department also gives
their Service Engineers and mechanics to participate in different training program organized
by Bangladesh Agriculture Research Institution where they learn how to operate and
manufacture different types of new and light agricultural machineries.

Apart from these Service and spare parts department of ACI Motor organized training
program for their service engineers and mechanics to increase their product knowledge and
efficiency. Training is given by the expert Indian Service engineer of sonalika tractor.

After selling of agrimachineries to customers Service engineer or mechanics of this

department provide practical training to the customers about how to drive tractor, power

Contribution of ACI Motors to the agricultural development of Bangladesh 27

tiller, how to maintain it properly, what should do and what should not to do etc. A
written Bengali manual is also given at that time.

For Tractor Service department of ACI Motors provide 1 year free servicing or free servicing
for using up to 1500 hours which one appears first. Customers receive free tractor
serving according to the following.

Slot:
1st service: after 50 hour

2nd service: after 250 hour

3rd service: 500 hour

4 t h service: 750 hour

5th service: 1000 hour

6th service: 1250 hour

7th service: 1500 hour

15. Uniqueness of ACI Motors after Sales service department:

15.1 Provide maximum free service: Free servicing facilities of Sonalika

Tractor start after 50 hours where other companies start this facility after 300
hour.

15.2 Door to Door Service: It is a unique service providing system of ACI Motor
after sell service department. In this system customers of ACI Motor give a call to the

Contribution of ACI Motors to the agricultural development of Bangladesh 28

 service engineer or service Coordination Executive of his region and told his problem.
After that, Mechanic of that regi on will go to his house or mentioned place
according to the promised schedule. Here, the customer does not have to take his
machine or drive his machine to the showroom of his region.

16. Constraints Affecting Mechanization of ACI Motors:

 Lack of Knowledge & Skill for efficient Use, Proper Maintenance and repair of machinery at all
levels of users.
 Absence of any Public sector agricultural extension activity for demonstration involving farm
machinery, mechanization and post-harvest activities.
 Poor quality of fuel, lubricants oil available in the village area.
 Low tariff on imported machines and high tariff on spare parts and materials of fabrication.
 Lack of knowledge of benefits of using machine in the agriculture.

17. Recommendation:
17.1 Established a Sales and spare parts center in Dhaka:
Competitors of ACI Motors like TAFEE and Mahindra has a sales and spare parts center in Dhaka but ACI
motors don’t have any sales and spare parts center in Dhaka. For this reason customers who live
around Dhaka like: Norsingdi, Dhamrai etc face problem because for buying spare parts they have to go
comilla showroom.

17.2 Strong Marketing Team

At present in ACI Motors are managing their sales in all over Bangladesh through only 9 territory
managers in whole Bangladesh. This 9 territory mangers have to cover 64 district of Bangladesh. Under
1 territory manger there are too many districts. For example: The territory managers of Jessore have to
cover 12 district which is very difficult for him mange and make proper concentration on each district.

17.3 Take aggressive promotion activities:

As a new company ACI Motors is not attempting enough promotion activities as should be. They are not
giving any advertisement in TV and Radio but their competitors especially TAFEE is giving TV
advertisement of their tractor. ACI Motors should also increase their billboard advertisement in different
district.

18. Conclusion:
To conclude I want to say that the boom of the company up to now is quite impressive. Now they are
the 2nd market leader in Bangladesh within these 9 years become the Most Diversified Mechanization
Company with Vast Product Varieties. ACI Motors is Pioneer in introducing Combine Harvester & Rice
Transplanter in Bangladesh.

Contribution of ACI Motors to the agricultural development of Bangladesh 29

19. Reference:
ACI Motors website: www.acimotors-bd.com

ACI website: www.aci-bd.com

ACI agribusiness website: www.aciagribusinesses.com

Ministry of agriculture: www.moa.gov.bd

Dept. of agriculture: www.dae.gov.bd

www.small-farm-permaculture-and-sustainable-living.com

Contribution of ACI Motors to the agricultural development of Bangladesh 30