Punjab based farm equipment player Sonalika Group, which makes tractors under the same brand is all set to launch a luxury sedan in 2013.
While confirming the development, L D Mittal, chairman of Sonalika Group said that, "We can share finer details right now, but a 2013 launch is final. We are working on developing a luxury sedan and also a sports utility vehicle (SUV)."
The company has roped in Italian design firm Pininfarina for the project. "The cost of development of the car project is roughly around Rs 300 crore", Mittal told Business Standard. He added that the car would be made in the Himachal Pradesh plant, which would have an initial capacity to make 36,000 cars per annum.
The group's SUV division, International Cars and Motor Limited (ICML) had launched an SUV named Rhino last year and has sold around 23,000 units of the Rhino so far. The company is also working on upgradations of the Rhino. Pininfarina, which also designs the Ferrari cars, is working on the project.
Meanwhile, the group's flagship company International Tractors Ltd (ITL) is looking for buyouts in Europe. "The efforts are on for acquiring small sized tractor companies in Europe. The negotiations are going on. The value of companies differ from company to company but it is around Rs 150 to 200 crore.", Mittal said. ITL is India's fourth largest tractor manufacturer after Mahindra & Mahindra, TAFE and Escorts.
In October Sonalika sold a 12.5% stake in ITL for $100 million (around Rs 520 crore) to US-based private equity player Blackstone Group. "The money raised from Blackstone would be used for acquisitions and partly for expansion plans as well", Mittal said. The Group is looking at expanding both in India and abroad. It also plans to start exporting its high-power tractors range to Europe from next year.
Mittal informed that ITL has sold 32,600 tractors so far this year and is eying to end the fiscal with a 30% growth. "Outlook for the second half is quite bright. We are absolutely sure to cross 60,000 during the current fiscal", he added.
