Sonalika Tractors

Last updated
Sonalika Tractors
Company type Private
Industry Agricultural machinery
Founded1995;29 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 (0.3 million) 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 holds 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 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

Related Research Articles

<span class="mw-page-title-main">Bajaj Auto</span> Indian two-wheeler and three-wheeler manufacturing company

Bajaj Auto Limited is an Indian multinational automotive manufacturing company based in Pune. It manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj (1889–1942) in Rajasthan in the 1940s.

<span class="mw-page-title-main">Titan Company</span> Indian multinational jeweller and watchmaker

Titan Company Limited is an Indian company that mainly manufactures fashion accessories such as jewellery, watches and eyewear. Part of the Tata Group and started as a joint venture with TIDCO, the company has its corporate headquarters in Electronic City, Bangalore, and registered office in Hosur, Tamil Nadu.

<span class="mw-page-title-main">Hero MotoCorp</span> Indian two-wheeler manufacturing company

Hero MotoCorp Limited is an Indian multinational motorcycle and scooter manufacturer headquartered in Delhi. It has a market share of about 30% in the Indian two-wheeler industry. The Munjal family, with its 34.75% stake, is the biggest shareholder in the company as of 2024.

The automotive industry in India is the world's fourth-largest by production and valuation as per 2022 statistics. As of 2023, India is the 3rd largest automobile market in the world in terms of sales.

<span class="mw-page-title-main">Yanmar</span> Japanese diesel engine manufacturer

Yanmar Co., Ltd. is a Japanese diesel engine, heavy machinery and agricultural machinery manufacturer founded in Osaka, Japan, in 1912. Yanmar manufactures and sells engines used in a wide range of applications, including seagoing vessels, pleasure boats, construction equipment, agricultural equipment and generator sets. It also manufactures and sells, climate control systems, and aquafarming systems, in addition to providing a range of remote monitoring services.

Mahindra & Mahindra is an Indian automobile manufacturing company headquartered in Mumbai, Maharashtra. It was established in 1945 as Mahindra & Mohammed and later renamed Mahindra & Mahindra. Part of the Mahindra Group, M&M is one of the largest vehicle manufacturers by production in India; the Mahindra Tractors subsidiary is the largest manufacturer of tractors in the world by volume. It was ranked 17th on a list of top companies in India by Fortune India 500 in 2018. Its major competitors in the Indian vehicular market include Maruti Suzuki India and Tata Motors. Dr. Anish Shah is the current CEO and Managing Director of Mahindra & Mahindra.

<span class="mw-page-title-main">Tractors in India</span> Overview of Indian tractor industry

Tractors in India are a major industry and significant contributor to its agriculture output gains.

<span class="mw-page-title-main">Mahindra Tractors</span> Indian farm equipment manufacturer

Mahindra Tractors is an Indian agricultural machinery manufacturer. It is part of the Mahindra & Mahindra corporation. In 2010, Mahindra became the world's highest-selling tractor brand by volume. Mahindra's largest consumer base is in India. It also has a growing market in North America and Australia. The company is the largest tractor manufacturer in India and has the capacity to build 150,000 tractors a year.

<span class="mw-page-title-main">Economy of Gujarat</span>

The economy of Gujarat, a state in Western India, is the most industrialised in India, having the highest industrial output of any state in the union. It has the highest exports of any Indian state, accounting for 33% of all Indian exports in 2022–23. It leads in diverse industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewellery, textiles and engineering. It has the highest Electricity Production Capacity and Maritime Port Cargo Volume among all states in India. It also has significant agricultural production with major agricultural produce of the state being cotton, groundnuts (peanuts), dates, sugar cane, milk and milk products. Gujarat recorded the lowest unemployment rate in India in 2022, with 4.4% of the labour force being unemployed.

<span class="mw-page-title-main">Economy of Haryana</span>

GSDP of Haryana state is estimated to be US$140 billion in 2023-2034 which had grown at 12.96% CAGR between 2012–17, boosted by the fact that this state on DMIC in NCR contributes 7% of India's agricultural exports and 60% of India's Basmati rice export, with 7 operational SEZs and additional 23 formally approved SEZs. Haryana also produces India's 67% of passenger cars, 60% of motorcycles, 50% of tractors and 50% of the refrigerators, which places Haryana on 14th place on the list of Indian states and union territories by GDP behind only much bigger states that are significantly larger in both area and population.

<span class="mw-page-title-main">Lupin Limited</span> Indian multinational pharmaceutical company

Lupin Limited is an Indian multinational pharmaceutical company based in Mumbai. It is one of the largest generic pharmaceutical companies by revenue globally. The company's key focus areas include paediatrics, cardiovascular, anti-infectives, diabetology, asthma and anti-tuberculosis.

<span class="mw-page-title-main">Lakshman Das Mittal</span> Indian businessman (born 1931)

Lakshman Das Mittal is an Indian businessman. He is the owner and chairman of the Sonalika Group. He is 82nd richest person of India. with the net worth of 2.31 Billion. He has been the Chairman of Tractor Manufacturer's Association of India and member of National Council of Confederation of Indian Industry.

<span class="mw-page-title-main">Sonalika Group</span> Indian tractor manufacturer

The Sonalika Group is an Indian multinational company headquartered in Hoshiarpur, Punjab and is active mainly in the automobile sector. It is best known for Sonalika Tractors. The Sonalika Group is headed by Lakshman Das Mittal.

<span class="mw-page-title-main">Renault Agriculture</span> Agricultural machinery division of the car manufacturer, established in 1918 in France

Renault Agriculture S.A.S. was the agricultural machinery division of the French car manufacturer Renault established in 1918 from its armored military vehicles division. While in operation, Renault Agriculture had various partnerships with major manufacturers and focussed production on tractors. The company was sold between 2003 and 2008 to German rival Claas. Renault Agriculture was dissolved in 2008 and its facilities became part of Claas' tractor division. Claas' tractor division and Renault's Auto Châssis International are Renault Agriculture successors.

The agricultural machinery industry or agricultural engineering industry is the part of the industry, that produces and maintain tractors, agricultural machinery and agricultural implements used in farming or other agriculture. This branch is considered to be part of the machinery industry.

<span class="mw-page-title-main">NITI Aayog</span> Indian government think tank

The NITI Aayog serves as the apex public policy think tank of the Government of the Republic of India, and the nodal agency tasked with catalyzing economic development, and fostering cooperative federalism and moving away from bargaining federalism through the involvement of State Governments of India in the economic policy-making process using a bottom-up approach. Its initiatives include "15-year road map", "7-year vision, strategy, and action plan", AMRUT, Digital India, Atal Innovation Mission, Medical Education Reform, agriculture reforms, Indices Measuring States’ Performance in Health, Education and Water Management, Sub-Group of Chief Ministers on Rationalization of Centrally Sponsored Schemes, Sub-Group of Chief Ministers on Swachh Bharat Abhiyan, Sub-Group of Chief Ministers on Skill Development, Task Forces on Agriculture and up of Poverty, and Transforming India Lecture Series.

<span class="mw-page-title-main">Amitabh Kant</span> Indian official

Amitabh Kant is presently India's G20 Sherpa. He is an Indian bureaucrat and the former chief executive officer of NITI Aayog, a public policy think tank of the Government of India. He is a retired member of the 1980 Indian Administrative Service (IAS) batch, the central civil service of the Government of India.

Punjab Tractors was the first Indian company to indigenously manufacture agricultural tractors in India, aptly named as Swaraj – giving a new dimension to the concept of self-reliance put forth by MK Gandhi. The seeds of this organization were shown in Central Mechanical Engineering Research Institute (CMERI), Durgapur in 1960s in the form of a design project, which later took the form of an organization in Mohali (Punjab).

Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai. The company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services.

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.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.