Sonalika invests Rs 500cr on capacity hike at Hoshiarpur plant

Tractor maker Sonalika Group is investing Rs 500 crore to more than double production capacity of its plant at Hoshiarpur in Punjab to 2 lakh units annually.
Sonalika Group Vice-Chairman A S Mittal said currently the plant in Hoshiarpur has a capacity to produce 90,000 tractors of 18-90 horse power (HP) range annually.
When asked about the investment for the expansion, he said it would be Rs 500 crore.
"To bring its capacity up to 2 lakh tractors, Sonalika would be looking to hire approximately 1,000 more workers," Mittal said, adding that currently the plant employs 4,000 workers.
Stating that the focus of the group is make the plant a high-end facility using modern robotic machines, he said it "can make a tractor every two minutes".

"It's totally integrated and we can manufacture 90 per cent of tractor in-house from basic raw material stage. It will be operational in June 2015," Mittal said.

The plant would manufacture right from engines to gear boxes and metal sheets and would be equipped with robotic painting facilities.
Sonalika group is currently present in 74 countries across the globe. It sells tractors between 20 HP and 90 HP range.
Mittal said in 2013-14, the company sold tractors worth Rs 4,000 crore and with the new plant coming in, it was looking at an additional export revenue of Rs 1,500 crore.

The group would also diversify its portfolio further and introduce diesel generators into the market.