Sonalika tractors to increase capacity from 60,000 to 100,000 units

In order to meet the robust demand of tractors in the domestic and the international markets, Punjab-based International Tractors Ltd (ITL) makers of Sonalika brand tractors is planning to ramp up its production capacity. The company has plans to increase its capacity to 1,00,000 tractors per annum from 60,000 at present.

Speaking to Business Standard, ITL Vice Chairman A S Mittal said, “We are planning to increase the capacity of Hoshiarpur unit by 20,000 units. At present our manufacturing facility in Hoshiarpur (Punjab) manufactures 60,000 tractors a year. Another 20,000 units will be added to our new upcoming facility, which we are setting up in Bihar. Further, we will be infusing about Rs 100 crore in ramping up the capacity.”

It is worth mentioning that in order to strengthen its presence in eastern India, the company has set up tractor manufacturing unit in Bihar, which would be fully operational by next year. He added, “We are hopeful the capacity addition in both the units will be completed by 2011.”

The company manufactures various tractors of Sonalika brand between 30 HP and 90 HP. Commenting upon the sales this year, he added, “This year has been very good for the industry. We have sold around 30,000 units during the period April-November 2010. Overall, we expect we will be able sell about 51,000 tractors, including exports, by the end of this financial year. So far performance is concerned, we have witnessed a growth of over 20-22 per cent over the corresponding period last year.”

ITL is among the top four tractor-selling companies in India. The company also export tractors to various countries, including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria, Zambia, Senegal, Ghana, etc. In order to cater to the African market, the company has set up an assembly plant in Nigeria with collaboration of a leading Nigerian company to expand export base in the African countries and has also launched tractors co-branding with leading Italian companies.

Recently, in order to stretch its wings in the south American markets for its Sonalika brand of tractors and farming solutions in several countries in south America, the company has tied up with Apache, a leading manufacturer of agricultural equipment in Argentina, to distribute its products in Argentina under the co-branding of Apache–Solis. According to the protocol signed between the two companies — Apache and Solis (ITL), all units will be assembled in Argentina.

Solis is another brand of the company and it is selling its tractors in the international market with the brand name ‘SOLIS’. Considering the wide potential of south American markets, the company plans to tap Argentina, Brazil, Chile, Ecuador, Peru, Surinam, Paraguay and Bolivia in a big way. The company has also tied up with Brazil’s major tractor and farm equipment manufacturers to sell their products in Brazil.

The company has also begun its foray into the American tractor market with hobby tractors, which are low-powered tractors with 40-45 HP, used for gardening.