Sonalika to invest Rs 100 crore to expand capacity

In order to meet the increasing demand for international quality tractors, International Tractors Limited (ITL), India’s 3rd largest tractor and agriculture equipment manufacturer, has decided to invest Rs 100 crore to maximise its production capacity. The company has plans to increase its production capacity to 100,000 tractors per year from the existing 60,000 units per annum. ITL is part of the Rs 5000 crore Sonalika group based in Hoshiarpur, Punjab. Giving a brief on the company’s plans, A.S. Mittal, Vice Chairman, ITL said, “We are going to establish a new manufacturing facility in Bihar with an annual production capacity of 20,000 units. We will invest Rs. 100 crore to increase our production capacity. Also we are looking forward to increasing the production capacity of our Hoshiarpur plant by 20,000 units.” With an objective to strengthen the company’s presence in the eastern region, ITL is setting up a plant in Bihar which would go on stream by next year. Mittal said that the process of adding up the additional production capacity will be completed this year. The company produces tractors of capacity ranging from 30 to 90 HP under the brand Sonalika. Commenting on the sales of the company in the current year Mittal said, “This year has been great for the tractor business. The sales of the company have increased by a massive 28.5 pc in the month of November 2010. The company sold 3337 tractors during the period as compared to 2596 tractors last year during the same month. We have achieved a remarkable 17 pc sales growth and have sold 25,872 tractors (previous year: 22118 tractors). All the brands of Sonalika group have done well in its respective segments across country during April-November 2010. Overall we expect to sell about 51,000 tractors by the end of this financial year.” Sonalika, one of the most respected tractor and agriculture equipment manufacturers has already exported the Wolrdatrac 90 RX to USA, Australia, Europe, various African and South American countries. It has an international distribution network of over 1800 dealers in over 65 countries. ITL Sonalika, a Rs.50 billion ($1-billion) brand name, is one of the most respected agriculture equipment manufacturers from India. It makes a wide range of tractors from 30 to 90 HP and other farm equipment. Starting with small exports to India’s neighbouring markets like Nepal, Bangladesh, Sri Lanka and Iran, Sonalika has now taken major leaps by exploring new markets like USA, Australia, Europe, Africa and South American countries. It has an international distribution network of over 1800 dealers in over 65 countries.