Sonalika lines up Rs 1150 cr for expansion

The Sonalika Group, a Delhi-based Rs 3,000-crore tractor and farm equipment major, today launched utility vehicle Rhino Rx priced between Rs 5.85 lakh and Rs 6.95 lakh ex-showroom Delhi, with an all-new frugal engine.

The group also announced investments of Rs 1,150 crore in its two subsidiaries "" International Cars and Motors (ICML) and International Tractors (ITL).

Launched by ICML, Rhino Rx has a new 2-litre diesel engine that gives a mileage of 17 km a litre. The company said that the vehicle would deliver a 100 bhp output, the highest in its class.

"Rhino has been successful with a limited launch in the northern region and we have sold around 1,000 units. Now, the new variant, with all an new-engine and improved styling, will be launched throughout India over 100 new dealerships in the next two years," Sonalika Group Chairman L D Mittal told reporters at the launch of Rhino Rx.

The company is also planning to develop compact cars and is negotiating with several automobile manufactures to source technology. It is also in the process of launching new models in the future and will infuse investments in product development and expansion.

The company announced that ICML would invest about Rs 700 crore on capacity expansion, enhancing its design facility and development of a new sports utility vehicle, while ITL would invest around Rs 450 crore on setting up a new tractor manufacturing unit in south India and ramping up existing capacity.

"We are looking to set up a greenfield tractor manufacturing plant in the south, which may come up in Tamil Nadu, Andhra Pradesh or Karnataka, depending on the responses from the respective state governments," L D Mittal said.

He said the new plant would entail an investment of about Rs 250-300 crore, with an annual capacity of about 40,000 units. ITL would also invest Rs 150 crore on doubling capacity of its current facility in Hoshiarpur, Punjab, to 80,000 units a year, he added.

Of the Rs 700 crore investment planned for ICML, around Rs 200-250 crore would go into the development of a sports utility vehicle, which is expected to be launched after two years, Mittal said.

Besides, the company was increasing the capacity of the utility vehicle manufacturing unit in Una, Himachal Padesh, to 60,000 units a year from the current 24,000 units. It would require an investment of about Rs 250 crore, he added.