Sonalika Tractors

Last updated
Sonalika Tractors
Type Private
Industry Agricultural machinery
Founded1995;28 years ago (1995)
Founder Lachhman Das Mittal
Headquarters
Hoshiarpur, Punjab
,
India
Area served
Worldwide
Key people
Amrit Sagar Mittal (VC)
Deepak Mittal (MD)
Products Tractors
Parent Sonalika Group
Website sonalika.com
Sonalika DI-47 RX Tractor Sonalika D1-47 RX Tractor With Carriage - ISKCON Campus - Mayapur - Nadia 20170815154905.jpg
Sonalika DI-47 RX Tractor

Sonalika Tractors is an Indian agricultural machinery manufacturer. The company was founded in 1995 in Punjab, India. [1] It is the 3rd largest manufacturer of tractors in India, with the capacity to produce 3.00,000 tractors a year, as of June 2017. The company has become the No.1 company in exports from India selling 35,000 tractors in FY 2021-2022 and is active in 150+ countries. [2] It manufactures tractors ranging from 20 HP to 125 HP. [3] [4] The company is operated by International Tractors Limited, [5] the flagship firm of Sonalika Group. [1] [6]

Contents

Sonalika Tractors wields about 11.7% [7] [8] market share of the Indian tractor industry. Sonalika Group owns a 70 per cent stake in the company while Japanese diesel engine manufacturer, Yanmar hold 30 per cent stake. [9] It was selected for the 'Champions of Change' 2017 programme organised by Niti Aayog. [10]

History

The brand Sonalika Tractors is owned and operated by International Tractors Limited, which was incorporated in 1969 . It was founded by Lachhman Das Mittal. [11] It sold its first tractor in 1996. [1] International Tractors Limited was incorporated on 17 October 1987 and began manufacturing tractors named as Sonalika designed by Central Mechanical Engineering Research Institute (CMERI).

The Vice President of India, Bhairon Singh Shekhawat symbolically handing over Sonalika tractors gifted by India to Armenia at his meeting with the Armenian Minister of Agriculture, Davit Lokyan in Yerevan on October 7, 2005 The Vice President Shri Bhairon Singh Shekhawat symbolically handing over Sonalika tractors gifted by India to Armenia at his meeting with the Armenian Minister of Agriculture, Mr. Davit Lokyan in Yerevan on October 7, 2005.jpg
The Vice President of India, Bhairon Singh Shekhawat symbolically handing over Sonalika tractors gifted by India to Armenia at his meeting with the Armenian Minister of Agriculture, Davit Lokyan in Yerevan on October 7, 2005

In 2000, Renault Agriculture, a French tractor maker, acquired a 20% stake in the company for 80 million francs (equivalent to $11.4 million in 2000) and formed a Sonalika-Renault joint venture to market its tractors worldwide. [12] [13] [14]

After tie-up with Renault Agriculture, the company started producing licensed Renault tractors under the Renault Sonalika International. However, the tractors are marketed under 'Solis' brand name while it is marketed under the 'Sonalika' brand name in India. [13] In August 2005, Sonalika bought back its stake from Renault when Renault Agriculture was acquired by Germany's Claas Motors. [15] [16] In October 2005, Yanmar, a Japanese company, acquired a 12% stake in Sonalika Tractors. [17]

In October 2012, the Blackstone Group bought a 12.5 per cent stake in the company for ₹520 crore. [18] The investment from Blackstone made the company valued at ₹4,200 crore in 2012. [1] The market share of Sonalika Tractors was also increased from 7.8 per cent (in 2011) to 9.9 per cent in 2013. The company launched a heavy range air-conditioned tractor series called Worldtrac 90 in June 2013. [19] In December 2016, Yanmar bought 18 per cent stake in Sonalika for about ₹1,600 crore. Currently, it owns a 30 per cent stake in the company after Blackstone exit. [9]

It formed a new joint venture with FAMAG in Algeria in October 2018. [20]

Plants

Sonalika Worldtrac 90 Sonalika Worldtrac 90.jpg
Sonalika Worldtrac 90
Sonalika DI Series Sonalika DI tractor.jpg
Sonalika DI Series

Sonalika has the world's largest tractor manufacturing facility, [21] in Hoshiarpur, Punjab. It is spread across 85 acres of land [22] and has all manufacturing facilities, from the engine to assembly. [23] The plant has a production capacity of 3,00,000 tractors annually. [22] In May 2017, the then Chief Minister of Punjab, Amarinder Singh, inaugurated the integrated tractor manufacturing unit of Sonalika. [22] [24]

The Hoshiarpur plant is also equipped with a robotic paint facility, which was introduced for the first time in the Indian tractor industry. [23] Sonalika has assembly plants in Brazil, Iran, Argentina, Algeria and Cameroon. [25]

Products

Former brands

Operations

It holds a 60% market share in Algeria, 22% in Nepal and 20% in Bangladesh. [26] The company operates in over 150+ countries [27] and is one of the top Indian tractor exporters. [28]

Awards and recognition

See also

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References

  1. 1 2 3 4 Thomas, Prince Mathews; Mishra, Ashish K (January 30, 2014). "What Sonalika Tractors Need to Beat the Mahindras". Forbes India .
  2. ↑ Modi, Ajay (June 15, 2017). "Sonalika scales capacity to produce 300,000 tractors". Business Standard.
  3. ↑ Sen Gupta, Nandini. "Yanmar Sonalika to make tractors for US". The Times of India .
  4. ↑ Mukherjee, Sharmistha (April 5, 2017). "Sonalika Tractors sales up 19.6% in FY17". The Economic Times.
  5. ↑ Panday, Amit (3 Jun 2020). "International Tractors report 19% growth in May sales". Livemint.
  6. ↑ Raghunathan, Anu (September 23, 2015). "84-Year-Old Indian Tractor Tycoon Wants To Triple Revenues By 2020". Forbes .
  7. ↑ Balachandar, G (May 8, 2020). "Amid volume decline in FY20, higher HP tractors stay in top gear". The Hindu Business Line.
  8. ↑ Banerjee, Avishek (May 24, 2017). "Sonalika Tractors Might Introduce Solis 120 In Domestic Market Soon". BusinessWorld.
  9. 1 2 PM, Indulal; Mukherjee, Sharmistha (December 23, 2016). "Yanmar buys Blackstone's 18% stake in International Tractors". The Economic Times.
  10. 1 2 Aradhana (August 22, 2017). "PM Addresses Young Entrepreneurs At The "Champions Of Change" Initiative Organized By Niti Aayog". BusinessWorld.
  11. ↑ "India Today, Volume 32, Issues 9-17". Living Media. 2007. p. 110.
  12. ↑ "Renault Agriculture ties up with ITL". Rediff.com . July 19, 2000.
  13. 1 2 "Renault Agriculture eyes higher stake in International Tractors". The Financial Express (India). February 6, 2002.
  14. ↑ Basu, Jaya (March 22, 2003). "Now, French tractors with 'Made in India' tag". Indian Express.
  15. ↑ Ramanathan, S Kalyana (August 3, 2005). "Renault sells 20% ITL stake for Rs 44 cr". Rediff.com .
  16. ↑ Choudhury, Santanu (February 6, 2013). "Renault Agri to source tractors from ITL". Business Standard.
  17. ↑ "Yanmar buys 12% stake in Intl Tractors". The Times of India . October 10, 2005.
  18. ↑ Chanchani, Madhav A (October 8, 2012). "Blackstone to acquire 12.5% in International Tractors for up to $100M". VCCircle.
  19. ↑ "Sonalika rolls out heavy range of AC tractor series". The Economic Times. June 14, 2013.
  20. ↑ "Sonalika ITL partners with FAMAG in Algeria". The Economic Times. October 24, 2018.
  21. ↑ "Inside the world's largest tractor manufacturing facility". ET Auto. The Economic Times. July 30, 2017.
  22. 1 2 3 "Sonalika inaugurates integrated tractor manufacturing unit". The Economic Times. May 8, 2017.
  23. 1 2 "Sonalika Tractors market share increases to 12%, grows by 50%". Rushlane. May 6, 2016.
  24. ↑ "ITL inaugurates world's largest tractor manufacturing plant at Hoshiarpur". The Economic Times. May 8, 2017.
  25. ↑ Seth Mohile, Shally (December 27, 2016). "Sonalika Tractors in talks to set up a plant in China". Livemint.
  26. ↑ Mathur, Shobha (17 August 2016). "Sonalika ITL launches 120hp tractor for exports; plans assembly units in China and USA". Autocarpro.
  27. ↑ Panday, Amit (July 10, 2019). "International Tractors Limited launches 2 new tractor brands in India". Livemint.
  28. ↑ Gupta, Nandini Sen (August 25, 2016). "Sonalika clinches top spot as tractor exporter in India in July". The Economic Times.
  29. ↑ "ITOTY 2019: India's First Awards Show for Tractors and Farm Implements". Business Standard. May 7, 2019.
  30. ↑ Sharma, Sakhi (October 24, 2018). "Global Agriculture Leadership Awards". Awardsandachievements.com.
  31. ↑ "ET Icon Brands of India 2017". ET Now. June 2, 2017.
  32. ↑ Singh, Sukhpal (2010). Agricultural Machinery Industry in India: Growth, Structure, Marketing and Buyer Behaviour. Allied Publishers. p. 51. ISBN   9788184245318.
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