International Tractors (ITL), an arm of the Sonalika Group, is planning to set up two assembly facilities for tractors in south and east Africa, as it intends to double its turnover from exports to Rs 800 crore by 2014.
The group is also exploring options to join hands or acquire a local company to set up its base in Europe. The company is likely to take a decision on it in the next three months.
Rajeev Wahi, president (international business), Sonalika Tractors, said, “We are firming plans to increase our level of exports from 10 per cent to 20 per cent. Besides Africa, we are also looking at expanding operations in Europe, Latin America and China.”
The expansion programmes would be carried out in the next three years.
Sonalika Tractors, which recently set up an assembly line in Cameroon and shipped 1,000 tractors to the country, is bullish on the African market. “There is a lot of potential in the African market. We will set up five centres in the continent, which will cater to about 40 countries. Our plants are already operational in Egypt and Cameroon; a third is being set up in Algeria. Besides, two more units are proposed in south and east Africa,” Wahi said. Each facility would produce 2,000 units a year on a single-shift basis.
The company is looking at tapping the markets in Peru, Chile, Brazil, Surinam and Ecuador from its base plant in Argentina. It has plans to acquire companies for expanding in the European market.
More From This Section
Wahi said, “We have very aggressive plans for Europe. In the next three months, we will decide on the final details.”
During this financial year, the company plans to sell 6,000 units in the overseas markets. ITL, which clocked a turnover of Rs 1,500 crore last financial year, sold 34,000 units in 2009-10 and is targeting to sell 50,000 units in this financial year, with a revenue of about Rs 2,000 crore.