Project Report on “ SONALIKA TRACTOR LTD” Submitted in Partial Fulfillment for the Award of the Diploma of Post Graduate Diploma in Management (Session 2009-11) Submitted to: Submitted By: Ms Surabhi Singh Anmol Verma (Internal Guide) Roll No 09 PGDM – VI Trimester-Sec- INSTITUTE OF MANAGEMENT STUDIES, NOIDA A UGC Recognized Institute
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Project Report
on
“ SONALIKA TRACTOR LTD”
Submitted in Partial Fulfillment for the Award of the Diploma of
Post Graduate Diploma in Management
(Session 2009-11)
Submitted to: Submitted By:
Ms Surabhi Singh Anmol Verma
(Internal Guide) Roll No 09
PGDM – VI Trimester-Sec-
INSTITUTE OF MANAGEMENT STUDIES, NOIDA
A UGC Recognized Institute
A-8B, Plot –C, Sector-62, Noida
DECLARATION
I Anmol Verma bearing Roll No 09 Class PGDM II Year of the Institute of Management Studies, Noida
hereby declare that the Project Report-607 entitled “ Sonalika Tractor Ldt “ is an original work and the
same has not been submitted to any other Institute for the award of any other diploma. The suggestions
as approved by the faculty were duly incorporated.
Signature of Student
Countersigned
Signature of Faculty Guide
2
ACKNOWLEDEMENT
No management study is complete without practical experience. Being an PGDM student I know
that creativity and practice both are essential elements of management
I would like to pay my sincere thanks to Ms Surabhi Singh for providing me a golden chance to
undergo for project & gaining practical knowledge about sonalika tractor Ltd.
Thanking you
Anmol verma
3
CONTENTS
Indian Tractor Market 5
World Leading Tractor Manufacture 8
Current Manufacture Tractor Of India 10
History Of Sonalika Group 13
Mission & Vision 15
Sonalika Group Units 19
Product And Services Of All Group Units 25
Distribution Network 30
Organisation Chart & functioning of departments 31
Conclusion 40
Suggestions 41
Bibliography 42
4
INDIAN TRACTOR MARKET
Arable Land Mn Hectare 1444 170 2
Irrigated Area Mn Hectare 249.6 45.8 2
Tractors In Use Tractors/000 Hectares 28 10.5 8
The Tractors available in developed countries have advanced features and accessories that is not
found in Indian tractors .Tractor industry has made a steady and satisfactory progress even in
drought areas.
Four factors have contributed to the steady progress:
Government laid stress on the mechanization of agriculture with a view to boost food
grain production. Therefore agriculture sector started receiving financial assistance.
There is an increase in awareness among the farmers for the need of farm mechanization
and are keen to acquire tractor with the help of credit facilities from financial institutions.
Agronomists believe that there is need for more tilling due to depletion of moisture and
repeated cultivation of land .It is precisely for this reason that the demand for tractors was
well maintained even during a draught period.
Animal power available is too inadequate to meet power demand of our farmers.
Mechanized operations are preferred to eliminate drudgery and delay, also labour
shortage during harvesting increased the use of tractor.
The automobile sector is a key player in the global and Indian economy. The global
Motor vehicle industry contributes 5 per cent directly to the total Manufacturing employment,
In addition, the auto industry is linked with several other sectors in the economy and hence its
indirect contribution is much higher than this. All over the world it has been treated as a leading
economic sector because of its extensive economic linkages.
5
India’s manufacture of 7.9 million vehicles, including 1.3 million passenger cars,amounted
to 2.4 per cent and 7 per cent, respectively, of global production in number.The auto-
components manufacturing sector is another key player in the Indian automotive industry.
Exports from India in this sector rose from US$1.0 billion in 2003-04 to US$1.8 billion in 2005-
06, contributing 1 per cent to the world trade in auto components in current USD. In India, the
automobile industry provides direct employment to about 5 lakh persons. It contributes 4.7 per
cent to India’s GDP and 19 per cent to India’s indirect tax revenue.
Till early 1980s, there were very few players in the Indian auto sector, which was suffering from
low volumes of production, obsolete and substandard technologies. With
De-licensing in the 1980s and opening up of this
At the end of the day there are enough reasons to believe that the industry will grow because:
More farmers are opting for multiple cropping over last decade. Country's net cropped
area had remained virtually stagnant while gross cropped area increased by about 4.7%.
This indicates the increased popularity of multiple cropping.
95% of tractor sales are on credit. Credit is extended by commercial banks, state land
development banks and regional rural banks.
Irrigation facilities reduce reliance on the monsoon and allow for quick yielding varieties
of food -grain .This reduces the cropping cycle to 3-4 months from the traditional 5-6
months.
Reduced cropping cycle require deep tilling which translates into higher demand for
tractors.
Cost of tractors in India is the cheapest in world .The cost of a finished tractor here is as
much as the cost of gear box in developed countries. Hence there exists tremendous
scope for exports.
According to a study conducted by PHD Chamber of Commerce and Industry, Since
purchase of tractor involves a big investment its demand in affected by the availability
and easiness of credit. A higher availability of credit will lead to a higher demand for
tractors.
6
The tractors between the 31-40 horse power and 31-40 hp range dominate the
market. The reason for medium horse power tractors being more popular are that
the major tractor demanding states like Punjab Haryana and Uttar Pradesh have plenty of
alluvial soil which does not require deep tilling. Lately it is visualised that higher hp
segment has the maximum growth potential Higher horse powered tractors will be the
future requirement with the government intention to encourage contract farming through
the leasing in and leasing out of farm lands.
Regarding exports India of latter has been exporting tractors to a number of countries, but
predominantly to Sri Lanka, Nepal and U.S.A .However the study reveals that exports
from India are going down in the recent years .The major reason for the decline in
exports of tractors of tractor from India is being the failure to find an extensive market
overseas ,deteriorating foreign exchange situation in African countries and their poor
buying capacity, comparatively cheaper imports of second hand tractors by South East
Asian countries from developed countries and the disintegration of erstwhile U.S.S.R. but
also the potential export markets can be explored by Indian in the future. Since Indian
tractors confirm to the international standard by virtue of their foreign collaboration it is
possible for India to export to more tractors to the rice and wheat growing countries like
Canada, Philippines and Bangladesh.
The tractor industry in India has developed over the years to become one of the largest tractor
markets in the world. From just about 50,000 units in early eighties the size of tractor market in
the country has grown up to over 400,000 units. Today industry comprises of 19 players,
including 3 MNCs. The opportunities still are huge considering the low farm mechanization
levels in the country, when compared to other developed economies across the world. After a
downturn during last 3-4 years, the industry is back on a growth path, which we believe would
sustain in coming years as well. Key concern for the industry is its dependence on Agricultural
income in hands of farmers and the state of monsoon. Today there are as many as 19 players
operating into tractor manufacturing activity in the country. However, about 97 per cent of
market is shared among the top 6 players only.
7
8
World leading tractor manufacture
23.11
13.80
6.72 6.60
9
10
Mahindra & Mahindra.TAFE.L&T - John Deere.Eicher.Mahindra Gujarat Tractor Limited.New Holland.Escorts (Escort, Powertrac and Farmtrac).Sonalika (International Tractors Ltd.)Punjab Tractors Ltd (Swaraj Tractors).Same Deutz-Fahr Ltd.HMT Tractors.Balwan Tractors, force motors ltd.VST Tillers.Captain Tractors Pvt. Ltd.Crossword Agro Industries.Indo Farm.MARS Farm Equipments Ltd.Preet Tractors.Standard.
Current manufacture of tractor in India…..
Leading Company In Tractor Market Of India 2010
Mahindra Tafe EscortSonalikaFiat New HollandJohan Deere
11
Market Share Of Company In India
HISTORY OF SONALIKA GROUP
FOUNDER – Mr. L.D.Mittal
12
Sonalika Group - Sonalika group is one of the top automobile and agriculture
machinery manufacturers in India. Apart from tractors its product line includes multi utility
vehicles, three wheelers, engines and various farm equipments and implements. Established in
1969, Sonalika group since the inception has tried to understand customer need to be facilitating
them with its value for money products. The Company has a state of art manufacturing facilities,
spread in acres, located in the free shrubs of Punjab and Himachal Pradesh.
Sonalika is the one of the top 3 tractor manufacturing companies in India, other products include
of, Multi utility vehicles, engines and various farm equipments. Today the group stands tall with
an approximate turnover of 5000 Crore INR. An average growth of 30% makes it one of the
fastest growing corporate in India. It is also one of the few debt free companies. Group has
strength of about 2000 employee technocrats. The company works on the maxims of low
production cost and clean and safe environment. Such efforts have fetched the company the
accreditation like ISO 9001 and ISO 14001. History reveals that innovation is the key to
continued progress and when applied to technology that touches human life, it can unfold a
whole new economic phenomenon that has the power to change the world. With unique
initiatives like the Thought leadership Forum, Leadership Forum, we have been able to create a
unique platform for learning through success stories of industry leaders. The success saga of
Sonalika Group a business conglomerate having prime interest in agricultural & auto machinery
goes back to nearly 5 decades. The corporate philosophy embedded in trust, quality and
commitment has helped the group to carve out a niche for itself in the highly competitive world
of Machinery. Sonalika is the fastest growing tractor company registering growth over growth
since its inception has crossed 1.80 lac merely in 10 years & has attained one of the position in
top three in India
Sonalika group’s products exist in various international markets. Company’s product exported to