Amarinder opens Rs 800-cr tractor unit of Sonalika

Vijay C Roy

Tribune News Service

Hoshiarpur, May 8

Punjab Chief Minister Capt Amarinder Singh today inaugurated the world’s No. 1 integrated tractor plant of International Tractors Ltd (ITL), the flagship company of Sonalika Group and makers of Sonalika and Solis brand tractors.

Set up with an investment of Rs 800 crore, it has a capacity to manufacture two lakh tractors per annum. The old unit, adjacent to the new facility, has a capacity to make one lakh tractors per annum. 

Now, the combined manufacturing capacity of both the plants is three lakh units per annum (ranging from 20HP to 120HP tractors). The plant has been upgraded to roll out a tractor every two minutes.

“The company is on a major export drive to push global sales of its tractors. It aims at optimising its total plant capacity of 3 lakh units per annum in the next five years and plans to export at least one lakh tractors per annum. Out of the these, 50,000 units will be exported to its equity partner Yanmar of Japan and the rest to other countries,”  said Sonalika Group’s vice-chairman AS Mittal.

“We are currently exporting to over 80 countries, including Africa, Europe, the USA and Asian markets. We aim at selling 300,000 tractors per annum in the next five years,” he said. 

LD Mittal, Chairman, Sonalika ITL, said, “With this new advanced facility, we aim to further strengthen our position in India and the overseas markets.” 

In the fiscal 2016-17, the company achieved an all-time high sale of 81,531 units, recording a growth of 19.6%. Out of this, domestic sales stood at 69,290 units with an annual growth of 18% while exports increased by 29.3% to 12,241 units. In the current fiscal, the company is targeting the sale of 1,10,000 units, including exports.

Recently, Yanmar of Japan, a pioneer in manufacturing of oil engines and tractors, has acquired around 18% stake in ITL. Post-acquisition, Yanmar’s total stake in Sonalika is 30%. The remaining 70% stake is held by Mittal family, the promoters of the company.