Sonalika scales capacity to produce 300,000 tractors

Firm's current capacity, which can meet half the total market demand, is more than M&M FY17 sales

Tractor maker Sonalika has scaled up its capacity to 300,000 units with the inauguration of a 200,000-unit plant at its existing site in Punjab’s Hoshiarpur. That is more than the 263,000 units sold by India’s largest player Mahindra & Mahindra (including exports) last year. Sonalika had a capacity of 100,000 units before the expansion.

Sonalika sold 81,531 tractors last year, growing almost 20 per cent. It enjoyed a strong Ebitda margin of 25 per cent and a 22 per cent growth in profit before tax to Rs 943 crore. Revenue grew 17 per cent to Rs 4,268 crore in FY17. The