Sonalika Will be Setting Largest Tractor Manufacturing Plant in India
Sonalika- one of largest tractor manufacturer is looking for expansion in tractor market and tractor manufacturing. Sonalika expects change in tractor and agriculture market after decreased sale in last year, said by Raman Mittal, executive director of Sonalika.
After a decline of 13% during FY15 owing to a host of unfavorable factors, the domestic tractor industry volumes have continued to be under pressure. Although the domestic demand has remained weak, a recovery in demand from the US, coupled with increasing exports to other destinations such as Turkey and Algeria, have aided volume expansion in exports.
Sonalika also expect the domestic volumes to remain weak during FY16 at about 7-8% and any recovery in volumes is only likely to happen over the medium term. In the long term, the tractor industry is expected to maintain a volume CAGR of 8-9% in the next five years, as long-term industry drivers remain favorable.
Sonalika has been the fastest-growing company in India and witnessed almost 50% growth in market share from 8% to 12% in the last four years. The core focus would be 40 HP and above. We have also recently launched products in the 30-HP segment.
Sonalika intend to expand the manufacturing capacity to 2 lakh tractors annually. In keeping with this requirement, Sonalika is coming up with the world’s largest integrated tractor manufacturing plant, strategically set up in Hoshiarpur, Punjab, with an investment of about Rs 500 crore.
The new plant will have a single production line for all variants and models. Sonalika has tied up with Minsk Tractor Works (MTW) to launch Belarus tractors in India and plans exporting it to other countries, which fall under the network of Minsk Tractor Works.
Source: Financial Express