Punjab-based International Tractors Ltd (ITL, makers of Sonalika brand tractors) has plans to raise its tractor prices by Rs 4,000-Rs 6,000 across all categories from January 3, 2010 in view of rising input costs. Company officials informed Business Standard that since there had been constant increase in prices of steel and rubber, the company had decided to hike the prices of its tractors.
Speaking to Business Standard, ITL Vice Chairman A S Mittal said, “In view of constant increase in prices of raw material, we have decided to increase the price of our tractors. We have witnessed constant increase in prices of steel and rubber. So we have decided to increase the prices by Rs 4,000-Rs 6,000 across all categories.” ITL manufactures various tractors of Sonalika brand between 30 HP and 90 HP, and CLASS brand between 70 HP to 90 HP.
The company has manufacturing facility in Hoshiarpur and has capacity to manufacture 60,000 tractors a year. The company has decided to increase the price of its tractors in order to offset higher input costs.
Commenting upon the sales this year, he added, “ This year has been pretty good for us. We have sold 28,500 tractors during the period April, 2009 to December, 2009. So far performance is concerned, we have witnessed a growth of 21 per cent over the corresponding period last year. Further we are expecting that we are going to close this financial year with 35,000 units.”
It is worth mentioning that ITL is one of the top three tractor selling companies in India. The company also exports tractors to various countries including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria, Zambia, Senegal and Ghana. In order to cater to the African market, the company has set up an assembly plant in Nigeria in collaboration with a leading Nigerian company to expand export base in African countries and has also launched tractors co branding with leading Italian company Also.
The company has begun foray into the American tractor market with hobby tractors, which are low-powered tractors with 40-45 HP, used for gardening. Further, the company has appointed national-level distributor to boost its export to neighbouring Bangladesh.
Sonalika’s , other products include , Multi utility vehicles (Rhino brand), engines and various farm equipments.
Today the group stands tall with an approximate turnover of Rs 5,000 crore.
An average growth of 30 per cent makes it one of the fastest growing companies in India.