Based on what we've got so far, this could be what you want:

--=======================================================

-- Test data:

--=======================================================

drop table #temp;

create table #temp

(

col1 int,

col2 char(1),

col3 char(1),

col4 char(3)

);

insert #temp values ( 1, 'X', 'M', 'abc' );

insert #temp values ( 2, 'X', 'M', 'pqr' );

--=======================================================

-- Solution:

--=======================================================

select

col1=col2,

col2=col3,

col3=max(case when col1=1 then col4 else null end),

col4=null,

col5=max(case when col1=2 then col4 else null end),

col6=null

from #temp

group by col2, col3;