Sonalika to invest Rs 700cr to up mfg, launch SUV

Tractor and utility vehicle manufacturer Sonalika Group will invest Rs 700 crore in the next three years on expanding capacities for tractor manufacturing and also for launching a new sports utility vehicle (SUV).

The company currently sells the Rhino multi-utility vehicle.

"We are looking at setting up a green field manufacturing plant in south India. We have written to the governments of Tamil Nadu, Andhra Pradesh and Karnataka for the purpose," L D Mittal, chairman, Sonalika Group, said.

The new plant will see an investment in the range of Rs 250-300 crore which will have an annual capacity of about 40,000 units. The company will also invest Rs 150 crore to hike capacity at its existing plants to 80,000 units.

Mittal said the company has already started investing Rs 200-250 crore in developing a sports utility vehicle. The SUV will be launched after two years.

The company today launched an upgraded version of its MUV Rhino Rx, which is priced between Rs 5.85 lakh and Rs 6.95 lakh (ex-showroom Delhi).