Sonalika Tractors Explained

Sonalika Tractors
Type:Private
Industry:Agricultural machinery
Founder:Lachhman Das Mittal
Hq Location City:Hoshiarpur, Punjab
Hq Location Country:India
Area Served:Worldwide
Key People:Amrit Sagar Mittal (VC)
Deepak Mittal (MD)
Products:Tractors
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Profit Year:-->
Owners:-->
Parent:Sonalika Group

Sonalika Tractors is an Indian agricultural machinery manufacturer. The company was founded in 1995 in Punjab, India. 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.[1] It manufactures tractors ranging from 20 HP to 125 HP.[2] [3] The company is operated by International Tractors Limited,[4] the flagship firm of Sonalika Group.[5]

Sonalika Tractors holds about 11.7%[6] [7] 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. It was selected for the 'Champions of Change' 2017 programme organised by Niti Aayog.

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.[8] It sold its first tractor in 1996. International Tractors Limited was incorporated on 17 October 1987 and began manufacturing tractors named as Sonalika designed by Central Mechanical Engineering Research Institute (CMERI).

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.[9] [10] [11]

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.[10] In August 2005, Sonalika bought back its stake from Renault when Renault Agriculture was acquired by Germany's Claas Motors.[12] [13] In October 2005, Yanmar, a Japanese company, acquired a 12% stake in Sonalika Tractors.[14]

In October 2012, the Blackstone Group bought a 12.5 per cent stake in the company for ₹520 crore.[15] The investment from Blackstone made the company valued at ₹4,200 crore in 2012.[16] 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.[17] 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.[18]

It formed a new joint venture with FAMAG in Algeria in October 2018.[19]

Plants

Sonalika has the world's largest tractor manufacturing facility,[20] in Hoshiarpur, Punjab. It is spread across 85 acres of land and has all manufacturing facilities, from the engine to assembly.[21] 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] [23]

The Hoshiarpur plant is also equipped with a robotic paint facility, which was introduced for the first time in the Indian tractor industry.[21] Sonalika has assembly plants in Brazil, Iran, Argentina, Algeria and Cameroon.[24]

Products

Former brands

Operations

It holds a 60% market share in Algeria, 22% in Nepal and 20% in Bangladesh.[25] The company operates in over 150+ countries[26] and is one of the top Indian tractor exporters.[27]

Awards and recognition

See also

Notes and References

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

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