Tractor and agri machinery maker — Rs 5000-crore Sonalika Group is planning to set up a vendor park in Hoshiarpur (Punjab) near its Tractor manufacturing unit.
The proposed move by the manufacturer will not only reduce the input or inventories cost but would also ensure timely supply of ancillaries.
The vendor park is likely to benefit the key vendors like Alloy Steel and Forging component manufacturer, Fabrication and sheet metal components and sheet metal fabrication.
In order to assist the vendors, the group would also share technical expertise with them besides helping them in land acquisition. It is worth mentioning that the group’s flagship company International Tractors Ltd manufacture tractor under Sonalika brand.
The tractor manufacturing is also planning to increase its manufacturing capacity from 60,000 units per annum to 1 lakh units per annum, in order to meet the robust demand in domestic and overseas market. Senior official in the ITL mentioned that they will also assist relevant assistance in terms of technology and technical know-how.
The representative said that there is scope for setting up alloy steel & forging component, fabrication & sheet metal components etc. “We believe in long term associations with the suppliers” ITL representative.
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It is worth mentioning that the company manufactures various tractors of Sonalika brand between 30 HP and 90 HP. ITL is among the top four tractor-selling companies in India.
The company also export tractors to various countries, including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria, Zambia, Senegal, Ghana, etc.
In order to cater to the African market, the company has set up an assembly plant in Nigeria with collaboration of a leading Nigerian company to expand export base in the African countries and has also launched tractors co-branding with leading Italian companies.
Recently, in order to stretch its wings in the south American markets for its Sonalika brand of tractors and farming solutions in several countries in south America, the company has tied up with Apache, a leading manufacturer of agricultural equipment in Argentina, to distribute its products in Argentina under the co-branding of Apache–Solis.
According to the protocol signed between the two companies — Apache and Solis (ITL), all units will be assembled in Argentina.
Solis is another brand of the company and it is selling its tractors in the international market with the brand name ‘SOLIS’.
Considering the wide potential of south American markets, the company plans to tap Argentina, Brazil, Chile, Ecuador, Peru, Surinam, Paraguay and Bolivia in a big way.
The company has also tied up with Brazil’s major tractor and farm equipment manufacturers to sell their products in Brazil.
The company has also begun its foray into the American tractor market with hobby tractors, which are low-powered tractors with 40-45 HP, used for gardening.