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Sonalika Auto Company On The Verge Of Global Expansion
Currently the company is running the farm equipment show along with the International Tractors Ltd (ITL). Last year, ITL sold 34000 units by yielding a turnover of Rs1500 crore and the target for this fiscal is 46000 units. The target investment for the next two or three years will be Rs 200 crore in a bid to expand its business, said the company"s President for International Business. There could not be detailed disclosure from him about the proposals, except that the setting up of a plant in China would materialize once the tie up was finalized. He added that the concrete picture might evolve in a year.
As the company is familiar with the US market, where it tests the prototype of its product ranges, it does not have any hesitation to enter that market too. Similar steps are taken for expansion in the European belt where an assembly plant can be possible. Once the decision on the potential tie-up was over, Sonalika would set up tractor making in the European lands, he said further.
Sonalika"s existing plants are in India and with the assistance from the five local manufacturers in South Africa, Jordan and Argentina. In Argentina, Sonalika will share the services of Apache on co-branding for distributing ITL makes assembled in Latin America.
Sonalika"s current business is worth Rs 5000 crore and it has recently launched two tractors of 75 horsepower and 90 horsepower for domestic market. There are innovations for launching tractors under 120 hp and 150 hp for export market. In addition, by next year, the capacity will be expanded to 250 units a day which is 180 units now.
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