Sonalika group.doc

Padma International Tractors, Manvi

INTRODUCTION

In olden days, people used to walk from one place to another. Later on man invented wheel and has been successfully improving his ideas. After the in the industrial revolution considerable development many machines, unique sophistication, design and technology have come into existence. Four wheeler industries have undergone metamorphic changers in nineties which introduces new improved products in the market and few would have anticipated that the different types of wheeler would be in popularity with both sexes opting to our personal transport.

Sonalika, which has a significant role in key sectors of the Indian economy, is consistently high performance. “Sonalika” tractors has been brought into the market and has been ranked among the top private sector companies in the country for few years.

A spectacular rise in agricultural production along with government policies was closely associated with the increased use of high yielding seeds, chemicals and fertilizers, irrigation and mechanization. These inputs coupled with production incentives and accessed the credit and market. After independence, India has witnessed a tremendous growth in equipment adoption, development, manufacture utilization, after sales services and custom servicing.

Agricultural equipment’s, machines and tools help man in increasing the productivity and profitability by timely farm operations. These come up with an effective utilization of costly inputs like seeds, chemicals, fertilizers and irrigation water through precise metering which in turn reduces the cost of operation, yielding more profitability and economic sustainability.

International Tractors Limited was incorporate on October 17, 1995 for the manufacture of

Tractors and has since then built a distinct position for itself in the Tractor industry. ITL is

manufacturing various Tractors of Sonalika brand between 30 H.P to 90 H.P, and CLASS

brand between 70 hp to 90hp. The tractors manufactured by company have secured a

reputation of performance, quality and reliability in the market because of their maximum

pulling power, minimum fuel consumption and low emission. All this makes ITL one of the

top five tractor selling companies in India. These tractors are also exported to various

countries including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh,

Algeria, Zambia, Senegal, and Ghana

Bapuji academy of management and reaserch 1


INDUSTRY PROFILE

India is basically an agricultural country. Almost 70% of India’s population is engaged in

agriculture for their bread and butter. Since the Indus valley civilization, agriculture is the

main source of income. In the early age the use of tractor was very low. Green revolution was

the result of tractor and other input used in agriculture. Today India is the largest tractor

market estimating 300,000 tractors with annual growth rate of 13.3%. It means 7 tractors per

thousand. Today tractor industry is of about 5000 crores.

The beginning

The decade of 60’s in India saw a green revolution resulting in increase in both production

and productivity. With an emphasis on industrialization, the birth of Indian tractor too place

in 1959-60 when the imports were restricted. Total indigenous production of tractors by 1965

was just 6000.

With the successful introduction and acceptance of high yielding seeds, however, there was a

sudden upsurge in demand for tractors after 1967 and demand started multiplying at an

annual rate nearly 50%.

The second phase

Seeing the sharply growing demand, Tractor industry became the most sought in the country

and as many as 18 fresh entrants approached the govt. for setting up the manufacturing units.

The interest of a large majority however lay in quick profits through sale of imported tractors.

Nevertheless 6 new manufacturers did enter the tractor industry; 4 in private sector and 2 in

govt. combined output of 11 units had risen to 32000 by 1975



The Maturing Years

With the entry of new units in 1970 and due to increasing govt. pressure, indigenization

picked up substantially after 1970 & by 1978 all most all the tractors manufacturer were

nearly indigenous.

A fillip to indigenization was also given by overall industrialization of the country, when a

large number of ancillary units were established and were in a position to supply a wide range

of components to the tractor industry.

The Present Scenario

The industry faced recession during 1992-93. Sales fell to 1.44 lac tractors from 1.50 lac

tractors during the year 1993-94. However there was a silver lining to the cloud. During

1994-95, 1995-96, 1996-97 sales stood 1.64, 1.91, 2.20 lac tractors respectively. In fact

exports have now become a thrust area. Different producers are now in line producing

different Horse Power tractors according to their available markets around the world.

Higher productivity and greater output are the two major contributions in farm

mechanization. Tractors form an integral part of farm mechanization and have a crucial role

to play in increasing agricultural productivity. Tractor is a highly versatile piece of machinery

having a multitude of uses, used in agriculture both for land reclamation and for carrying out

various crop cultivation and also employed for carrying out various operations connected

with raising the crops by attaching suitable implements and to provide the necessary energy

for performing various crop production operations involved in the production of agricultural

crops. Tractors are capital intensive, labour displaying used as a mode of transport, in

electricity generation, in construction industry and for haulage operation. It has now become

an integral part of farm structure .The application of tractor for agricultural activities which

swept India during the last twenty years have erased the problem of farmers. Farm

mechanization program in India aims to integrate the use of available human and animal farm

power with mechanical sources of power for increasing the productivity.

Indian tractor industry, comparatively young by world standards have expanded at a

spectacular pace during last four decades. Consequently it now occupies a place of pride in



India's automobile industry. U.S.A., U.S.S.R. and only a few Western European countries

exceed the current production of tractors in India, but in terms of growth India's growth is

unmatched even with countries of long history of tractor manufacturing. The spectacular

achievement reflects the maturity and dynamism of tractor manufacturers and also the

policies adopted by the government to enable it to effectively meet the demand. The tractor

industry in India has made a significant progress in terms of production and capacity as well

as indigenization of technology. It is a typical sector where both imported technology and

indigenous developed technology have developed towards meeting the overall national

requirements. The global spotlight on tractors manufacturers certainly in terms of volume

seems to be swinging away from the USA, UK and Western and Eastern Europe towards

India where growth in the number of producers and the total volume in recent years have

been impressive. In India tractor industry has played a vital role in the development.

India's gross cropped area is next only to United States of America and Russia and along with

fragmented land holdings has helped India to become the largest tractor market in the world.

But it drops to eight position in terms of total tractor in use in the country when compared to

international figures, only 3% of total tractors used all over the world . It is to be noted that

while the overall automobile industry is facing recession the tractor industry is growing at

9%.About 20% of world tractor production is carried out in our country only. The arable land

in India is high as 12% of the total arable land in the world. Tractor market in India is about

Rs 6000 crore. On an average around 400000 tractors are produced and their sale is

260000.Uttar Pradesh is the largest tractor market in our country. One out of every four

tractor is being purchased here. Indian tractor market has to be viewed considering its

position in the world with respect to key parameters as given below:



INDIAN TRACTOR MARKET

DESCRIPTION UNITS WORLD TOTAL/AVG INDIA INDIA RANK

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 are

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.

* 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.

* 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 visualized 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 Srilanka ,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


Padma International Tractors, Manvi India to export to more tractors to the rice and wheat growing countries like Canada,

Philippines and Bangladesh.

FOREIGN COLLABORATION

Tractor industry along with others benefited from this policy which allowed free inflow of

foreign technology .The manufacture of tractors started in India mainly with the help of

foreign collaboration secured from internationally reputed companies from the USA, UK,

USSR, WEST GERMANY, POLAND, and CZECH SLOVAKIA. Most of the models which

were taken up for manufacture in India were developed overseas. Soon after the decision for

the manufacture of tractors was made during second plan, government approved number of

foreign collaboration agreements. The establishment and present status of tractor industry

owes a great deal to the support received by the Indian entrepreneurs from foreign

collaboration during the initial phase of manufacture.

DSIR has introduced a scheme, "National Register of Foreign Collaborations", which

envisages review and analysis of imported technologies in the country and suggested

measures for appropriate choices acquisition and implementation of foreign know-how.

Major objective of scheme is:

* To undertake financial, economic and legal analysis of set of data on foreign collaboration.

* Carry out a technological analysis of the imported technology and provide a stage of art

technology in the country and status of implementation of collaboration.

* Co-ordinate with Ministry of Industry, Commerce and Finance by providing technology

data input.

* Selective support to strength measures in Research and Development for technology

absorption.



List of tractor manufacturers, their collaborators and the year of commencement of

production:

MANUFACTURERS AND COLLABORATORS

MANUFACTURER COLLABORATOR YEAR

Eicher Tractors Ltd Gebr, Eicher Tractor. West

Germany

1961

TAFE Messey Ferguson. UK 1961

Mahindra And Mahindra International Harvestor. UK 1965

Escorts Tractor Ltd Ford .U.K. 1971

Hindustan Machine Tools Motokov -Praha.

Czechoslovakia

1971

Punjab Tractor Limited CMERI.INDIA 1974

International Tractors Own know-how 1998

New Holland Tractor New Holland Tractors .Italy 1999

MAJOR PLAYERS IN INDIAN TRACTOR MARKET

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 200,000 units. Today industry comprises of 14 players,

including 3MNCs. 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


Padma International Tractors, Manvi would sustain incoming years as well. Key concern for the industry is its dependence on

agricultural

Income in hands of farmers and the state of monsoon. Tractor Segments: 30 - 40 HP

dominates with over 50 percent share

Tractor industry is classified into three broad segments, based on the power delivered by the

engine Horse Power (HP)

SEGMENTS HORSE

POWER

MARKET

SHARE

(%)

SUITABILITY

Small Tractors 21-30 23-25 Tractors suited for soft soil conditions

and preferred in well irrigated

northern states.

Medium Tractors 31-40 53-56 Used in southern and western region

due to hard soil conditions.

Large Tractors 41-50 17 Rich farmers with larger land

holdings, especially in Punjab and

Haryana.

Large Tractors >50 2-4 Used in Turnkey project sites such as

building sites for canals, dams and

civil

Construction projects.


Padma International Tractors, Manvi Today there are as many as 14 players operating into tractor manufacturing activity in the

country. However, about 90 per cent of market is shared among the top 5-6 players only.

Mahindra and Mahindra continues to dominate the industry with close to 30 per cent share,

while other players like TAFE, Escorts, PTL, ITL and Eicher enjoys market share of 15 per

cent , 14 per cent , 11 per cent , 11 per cent and 10 percent respectively.

INTERNATIONAL CARS AND MOTOR LIMITED

International Cars & Motors Limited (ICML) is a Group Company of the Rs 1200 Crores

SONALIKA Group. The Company is promoted by Mr. L.D.Mittal (Chairman), Mr.

A.S.Mittal (Vice Chairman) & Mr. Deepak Mittal, Managing Director, who are having vast

experience in manufacturing of tractors, Farm machines & Automobiles.

ICML is a project of its kind and is the ‘Pride of Himachal Pradesh’. The Company is having

its state-of-the-art production facility, with centrally air-conditioned, dust & pollution free

environment, to manufacture multi-utility vehicles / sports – utility vehicles, in Amb,

Himachal Pradesh.

The Company is a ‘Mother Unit’ as its establishment shall attract many other ancillary &

small units for meeting the raw material requirements yielding manifold employment

avenues, revenue & industrialization in the state.

The Company has entered into Technical Collaboration Agreement with MG Rover of UK,

with the technical know – how from MG Rover, UK. The Company has manufactured MUV

with the name of RHINO RX & the same MUV boasts of Rover engines. The company is in-

process of developing its own Common Rail Direct injection (CRDi) engines.

The company has the installed capacity to manufacture 2000 MUVs in a month i.e., 24000

MUVs in a year. In the first full year of production in 2006-2007, ICML is aiming to churn


Padma International Tractors, Manvi out about 5000 MUVs & expects to achieve a turnover of 250 Crores. The Company, besides

catering to the domestic market, also has an eye on exports & exports to Malaysia, Nepal,

Bangladesh & Indonesia are also in an advanced stage. The Company is eligible for the

Central & State Govt. Tax sops, exemption from the excise duty & income tax for 10 years

Sonalika Group intends to inject Rs. 1000 Crores in Himachal Pradesh over the next 2 -3

years in the upcoming ICML plant & ICML has an ambitious plan to play a major role in the

Indian Automobile Industry. International cars & motors ltd, car plant is located in foothills

of Shivalik Range and surrounded by natural greenery of Himalayas at AMB (HP) a tax-free

zone. The total area of plant is 93,000 Sq. M. out of which 42,000 Sq. M. is covered area.

Plant capacity to produce 24000 cars in a year.

COMPANY PROFILE

HISTORY OF SONALIKA GROUP

FOUNDER – Mr. L.D.Mittal

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


Padma International Tractors, Manvi 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 Algeria, Angola, Armenia, Australia, Bangladesh, Cameroon, Ethiopia, Ghana,

Ivory Coast, Malawi, Malaysia, Mauritius, Mozambique, Nepal, Oman, Republic of Benin,

Senegal, South Africa, Srilanka, Sudan, Canada, Zambia, Syria, Togo, Tunisia, Ukraine, and

Zimbabwe.

MISSION & VISION

VISION STATEMENT

The dream Project of Sonalika group is to cater the agricultural and auto industry with quality

abrasive products through untiring dedication and leadership.

MISSION STATEMENT

we pay personal attention to customers so that, we can build products they need, and not

merely sell the products we build.


Padma International Tractors, Manvi CORE VALUES

To accomplish our mission, the ownership, staff, and management go to great lengths to treat

each customer like a member of the family and provide them with the best choice of products

and highest quality of service in the industry.

ETHO STATEMENT OR LOGO RATIONALE

Red symbolizes the strength, power, determination, and desire of company.

Yellow surrounding the Sonalika produces a warming effect, arouses cheerfulness, stimulates

mental activity, and generates the same.

Green Leaf in the center symbolizes growth, harmony, freshness, and fertility. Black

underlining the logo associates with power, elegance, and formality.

Orange surroundings the complete logo represents enthusiasm, fascination, happiness,

creativity, encouragement, and stimulation. All this permutation of persona represents the

Sonalika group as an asset in the industry.

Sonalika Agro Industries Corporation

This company mainly deals with agricultural equipments and implements. That are helpful to

the farmers in agriculture the product line of the sonalika agro industries corporation is as

follow:-

Combine Harvesters

Threshers

Potato Planters

Maize Sheller-cum

Seed-cum-Fertilizer Drills


Padma International Tractors, Manvi Straw Reapers

Ploughs

Harrows

International Autotrac Finance Limited

This company basically deals with services which are provided to farmers, salaried for

finance the tractors and other agricultural equipment’s and implements. Provide financial

assistance to them.

International Cars and Motor Limited

At present this company produces one car model Rhino Rx a MUV by this group and also

working on the new car model INSPIRE and this will launch within this year.

Market

No wonder Sonalika products have created a niche for themselves not only in India but also

in foreign markets including France, Africa ,Bangladesh , Srilanka, Senegal, Mali, South

Africa, Canada, Syria and many of the South Asian countries. Some of the international

clients are as follow: MG Rover, Power Train, Renault, and Yanmar. In domestic market

sonalika products are popular in all across the India. In Punjab, there are 45dealers of

sonalika tractors.

INTERNATIONAL TRACTORS LIMITED

As per the training concern my training is in the sonalika tractors that is International

Tractors limited. This company mainly deals with tractor manufactures and also some other

like Generators etc.ITL was established in 1995-96 with a covered area of 25 acres. It is

situated at distance of 7 km from Hoshiarpur on Hoshiarpur-Jalandhar road. It is specialist

in manufacturing of producing three cylinder diesel engines of tractors. The first tractor


Padma International Tractors, Manvi manufactured by the company on 14th Oct, 1996. In Oct, 96 the capacity of the company was

one tractor in two days. It has sold 400 tractors in the first year of launching tractor & now

the production rate is 1200-1250 tractors per month but installed capacity of company is 100

tractors per day. It has developed its own 60HP diesel engine.

ITL’s Hosiarpur situated plant is spread across 50,000sq.meter, which is having fully

computerized and high level modern machines. Presently, the production capacity of plant is

100 tractors per day. Near about 3000 people engaged in the plant including workers,

technicians, and engineers on regular basis and around 3000 people work on contract basis.

Competitors of Sonalika tractors are as Escorts, Eicher, Hmt, Mahindra and Mahindra,

Swaraj/PTL, Tafe/Massey, New Holland ford,

ACHIEVEMENTS

-Company has produced smoke free diesel engine

-Company has increased its production of diesel engines up to 60 engines per day

-International Tractor Limited has a network of network of more than 1000 dealers

-Computerized tractor plant

-First Indian tractor engine750III conforming to Euro II norms

-Pride of country awarded to Sh L.D MIttal, Chairman.

-Gold medal awarded to Sh. A.S Mittal, Vice Chairman

-Udyog Bhushan awarded to Sh. Deepak Mittal, MD

DETAILS OF TOP EXECUTIVES

1. Chairman- Mr. L.D. Mittal

2. Vice Chairman- Mr. A.S. Mittal


Padma International Tractors, Manvi 3. Managing Director- Mr. Deepak Mittal

4. Finance Head- Mr.Rajnesh Jain

5. Production Head- Mr. Ashok Kapoor

6. Marketing Head- Mr.L.R.Yadav (CEO)

7. R&D Head- Mr. Ashwani Malik

Turnover

The total turnover of the group stands for 3200crore 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.

SONALIKA GROUP -MILESTONE

1) 1969, Modest beginning into farm equipment and machine manufacture and

earning name and fame over all these year.

2) 1995 Diversification into manufacture of tractor over whelming response from

the market.

3) 1996 Roll out of first tractor from ITL.

4) 2000 Enter into joint venture with Renault Agriculture France for tractor

manufacture in India.

5) 2000 Started in house manuf. Of engine for tractor application.

6) 2002 Started export of tractor to Africa, Asian sub continental.

7) 2004 Started Roll out of 100000 Tractors

8) 2004 Started establishment of ICML.

9) 2005 Become the fourth largest tractor manufacturer in India.

10) 2005, Roll out of first vehicle from ICML facility.


Padma International Tractors, Manvi 11) 2005 Joint venture with Yanmar Agriculture of Japan.

12) 2006 Successfully developed 4 wheels drive front Axles and transmission of

tractors for Yanmar.

13) 2006 Rollout of 100000th tractor engine.

14) 2006 Become 3rd largest manufacture of tractor in India.

15) 2006 Market launch of Rhino (MUV) and establish dealer’s network.

SONALIKA GROUP UNITS

Sonalika group divided into four companies’ .Sonalika group units is as follow:

INTERNATIONAL TRACTORS LIMITED


SONALIKA

GROUP

INTERNATIONAL TRACTOR LIMITED

INTERNATIONAL CARS AND MOTOR

LIMITED

INTERNATIONAL AUTOTRAC

FINANCE LIMITED

SONALIKA AGRO INDUSTRIES

Padma International Tractors, Manvi International Tractors Limited was incorporate on October 17, 1995 for the manufacture of

Tractors and has since then built a distinct position for itself in the Tractor industry. ITL is

manufacturing various Tractors of Sonalika brand between 30 H.P to 90 H.P, and CLASS

brand between 70 hp to 90hp. The tractors manufactured by company have secured a

reputation of performance, quality and reliability in the market because of their maximum

pulling power, minimum fuel consumption and low emission. All this makes ITL one of the

top five tractor selling companies in India. These tractors are also exported to various

countries including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh,

Algeria, Zambia, Senegal, Ghana etc.

ITL has entered into strategic alliance with YANMAR of Japan for joint manufacturing

tractors in India. ITL has a marketing arrangement with TATA International for development

of

selected South American and African market. The company’s marketing efforts are promoted

by dealer network of 600, and 450 sub dealers. Such a networking has enabled the company

to grow like a well-knit family whose roots lie in its customers, who have providing constant

feedback and support to allow the company to turn their dreams into products.

They are also manufacturing tractors, meeting norms of Smoke & Mass Emission, Tested and

certified by ARAI, Pune. United States Environmental Norms Agency, Washington DC has

also certified our Engines. These certifications enabled SONALIKA Tractors to enter into

world Market. All the Models of Tractors and Combines Harvesters manufactured by us are

tested & approved by central Farm Machinery and Tractors Training & Testing Institute,

Bundi (MP) India, (the Government of India Institute authorized for issuing test reports).

Address- International Tractors Limited Jalandhar Road, Hoshiarpur (Pb.) Pin-

146022 (India)

INTERNATIONAL CARS AND MOTOR LIMITED

International Cars & Motors Limited (ICML) is a Group Company of the Rs 1200 Crores

SONALIKA Group. The Company is promoted by Mr. L.D.Mittal (Chairman), Mr.

A.S.Mittal (Vice Chairman) & Mr. Deepak Mittal, Managing Director, who are having vast


Padma International Tractors, Manvi experience in manufacturing of tractors, Farm machines & Automobiles.

ICML is a project of its kind and is the ‘Pride of Himachal Pradesh’. The Company is having

its state-of-the-art production facility, with centrally air-conditioned, dust & pollution free

environment, to manufacture multi-utility vehicles / sports – utility vehicles, in Amb,

Himachal Pradesh.

The Company is a ‘Mother Unit’ as its establishment shall attract many other ancillary &

small units for meeting the raw material requirements yielding manifold employment

avenues, revenue & industrialization in the state.

The Company has entered into Technical Collaboration Agreement with MG Rover of UK,

with the technical know – how from MG Rover, UK. The Company has manufactured MUV

with the name of RHINO RX & the same MUV boasts of Rover engines. The company is in-

process of developing its own Common Rail Direct injection (CRDi) engines.

The company has the installed capacity to manufacture 2000 MUVs in a month i.e., 24000

MUVs in a year. In the first full year of production in 2006-2007, ICML is aiming to churn

out about 5000 MUVs & expects to achieve a turnover of 250 Crores. The Company, besides

catering to the domestic market, also has an eye on exports & exports to Malaysia, Nepal,

Bangladesh & Indonesia are also in an advanced stage. It will also offload the product in

African continent soon.

The Company is eligible for the Central & State Govt. Tax sops, exemption from the excise

duty & income tax for 10 years, which shall add to its viability & future expansion.

Sonalika Group intends to inject Rs. 1000 Crores in Himachal Pradesh over the next 2 -3

years in the upcoming ICML plant & ICML has an ambitious plan to play a major role in the

Indian Automobile Industry. International cars & motors ltd, car plant is located in foothills

of Shivalik Range and surrounded by natural greenery of Himalayas at AMB (HP) a tax-free

zone. The total area of plant is 93,000 Sq. M. out of which 42,000 Sq. M. is covered area.

Plant capacity to produce 24000 cars in a year.


Padma International Tractors, Manvi Address:-Amb Dist., Himachal Pradesh. {Tax Free Zone}

INTERNATIONAL AUTOTRAC FINANCE LIMITED

International Autotrac Finance Limited is a non-banking finance company approved by RBI.

IAFL provide finance to customers of International cars & motors limited in rural & semi

urban areas across India through customer friendly schemes.

Its parent company Sonalika Group ranks among the largest tractor & farm equipment

manufacturer in India

Business Plans of IAFL

First Phase: In the first phase, the area of operations will be in the state of Punjab, Haryana,

Jammu, H.P (Done).

Second Phase: In the second phase, the area of operations will be extended to other parts of

Northern India.

Third Phase: In the third phase, the area of operations will be extended to whole India.

DEALER NET WORTH:

The company has established a network of dealer equipped to attend all customer needs,

training demonstrations spare parts. After, sales service…….. Anything related to tractor

care. Dealer show rooms and dealer workshops are strategically located to provide prompt

after sales and service support.

A carefully selected dealer network ensures the high standards of excellence and reliability of

Sonalika in India. The company aims to provide the quality of service that Sonalika and

customers have always experienced efficient, quick of reliable.


Padma International Tractors, Manvi OFFICE NETWORK:

The company has a network of area offices and depots in the country to facilitate sales and

service. Enquiries are looked into and attended to immediately by company officials.

ABOUT PADMA INTERNATIONAL TRACTORS

Padma international tractors is a sole trading concern dealing in automobile business since

2010 in manvi city under the name of “Padma international Tractors”.

Mr. Kona Basker had taken the dealership of sonalika tractors in the name of “Padma

international tractors.”

Padma Agency is the authorized dealer for sonalika tractors manufactured by sonalika

international tractors Company Ltd.

This firm came into existence with a view to serve the public with efficient sales and service

station for Sonalika tractors. The showroom of sonalika tractors is situated on RG road,

manvi. The service station is situated opposite the showroom. The service areas have been

upgraded as per company specifications.

Infrastructural Facilities:

1. Land and Building: The firm has a showroom and garage just opposite of the firm and

total area occupied by the firm in between 2500 sq.ft. to 2750 sq.ft.

2. Power: The electric power requirement of the firm is of 200 to 250 units per month. The

electric power consumed by the firm’s showroom is about 95 units and service station

like water washing of vehicles etc. take the power consumption of 95 to 105 units.

3. Machinery: The firm is well equipped with washing machine and special tools needed

for servicing the vehicles.

4. Man Power: The firm has sufficient staff of machines. There are 6 mechanics and 4

helpers and 2 foreman


Padma International Tractors, Manvi OTHER STAFF OF THE FIRM

Dealer & owner Kona basker

Sales Manager Prakash

Computer Accountant Krishna Murthy

Work manager Basker

Fore Man Venkatesh

Asst. Fore Man Nagaraj, Gopi, Abdhul

Marketing strategies adopted by sonalika and its dealers:

According to Philip Kotler, a marketing strategy is a consistent appropriate and feasible set of principles through which a particular company hopes of achieve its long term customer and profit objectives in particular competitive environment.

A company’s marketing strategy have to take several factors into account including:

1) The company’s competitive size and position in the market.

2) The Company’s resources, objectives and policies.

3) The competitors marketing strategies.

4) The target market’s buying behavior.

5) The stage of the product life cycle.

6) The character of the economy.

We can gain further insight into the competitive area by classifying companies by the role. They play in the market with that of market leader.

Market leader strategies:


Padma International Tractors, Manvi The sonalika Company Ltd. has the largest sale of tractors. It usually leads the other company in price changes, new product introduction, distribution coverage and promotional intensity.

The various marketing strategies adopted by sonalika company and its dealers are explained as below:

1) Demonstration and free test drive :When the company introduces a new product in the market, it demonstrates its vehicle to the customers and provides from test drive, with a view and educate them at dealer showroom.

2) Free service programed :

Free service coupons are provided with the purchase of new vehicle and if any parts are damaged with in the guarantee period, they are reported at free of cost by the dealer.

3) Free checkup campaign :

Once or twice in a year the dealer and service engineers of the company arrange free checkup campaign and the customers are educated about the efficient handling of the vehicle.

4) Advertisement :

With a view to create demand for the product in the mind of the customers and to improve the competitive strength, the company advertises its vehicles through various media such as T.V., Newspaper, Magazines, and Sign board etc.

5) Field staff :

Dealers will send their field staff to villages, rural and urban areas to educate the customers

about the uses of vehicle and also takes orders.



SWOT ANALYSIS

STRENGTH:-

Human Resource Research & Development Physical Resources: - SAP, own IT

dept. Availability of finance Investors Relationship

WEAKNESS:-

Import of tractor implements Lack of advertisement regarding

their products


Padma International Tractors, Manvi OPPORTUNITIES:-

Unexplored Markets for Exports :-Mexican & Brazilian markets

THREATS:-

o Competitorso High Maintenance costo Mainly used for agro-purpose

RESEARCH METHODOLOGY

Research can be defined as a scientific and systematic search for pertinent information on a

specific topic. According to Clifford Woody research comprises defining and redefining

problem, formulating hypothesis or suggested solutions; collecting, organizing and evaluating

data; making deductions and reaching conclusions and at last carefully testing the conclusions

to determine whether they fit the formulating hypothesis.

Research methodology is a way to systematically solve the research problem. It may be

understood as the science of studying how research is done scientifically.

Research design

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure.


Padma International Tractors, Manvi In fact, the research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data. One may split

the overall research design into following parts:

a) The sampling design which deals with the method of selecting items to be observed for the

given study.

b) The observational design which relates to the condition under which the observations are

to be made.

c) The statistical design which concerns with the question of how many items are to be

observes and how the information and the data gathered are to be analyzed.

d) The operational design which deals with the techniques by which the procedure specified

in the sampling, statistical and observational design can be carried out.

Data sources:

The task of data collection begins after a research problem has been defined and a research

design has been chalked out. While deciding about the methods of data collection, the

researcher should keep in mind two types of data:-

1. Primary data

The primary data are those data which are collected afresh and for the first time, and

thus happen to be original in character. Data was collected through questionnaire.

2. Secondary data.

The secondary data on the other hand, are those which have already been collected by

someone else and which have already been passing through the statistical process.

The researcher would have to decide which sort of data he would be using for his

study and accordingly he will have to select one or the other method of data


Padma International Tractors, Manvi collection. The methods of collecting primary and secondary data differ since primary

data are to be originally collected, while in case of secondary data the nature of data

collection work is merely that of collection and compilation of information collected

through various newspapers, magazines and internet etc. In this research, I follow

both the method of data collection.

This research involves both primary and secondary sources of data collection.

The information was collected and assembled from various websites,

Research approach

The approaches mainly opted by the researcher to get the result include behavioral, survey,

focus group, observational, experimental approaches etc.

For conducting this research the main approach used was survey approach i.e. interviewing

the consumers.

Research instrument

The primary data was obtained during the course of doing research in a systematic manner

with the help of questionnaires and interviewing peoples.

Questionnaire method: this method of data collection is quite popular, particularly in case of

big enquires. In this method a questionnaire is sent to the persons with a request to answer

and return the questionnaire. A questionnaire consists of a number of questions in a definite

order on a form or a set of forms.

The questionnaire used by me for the purpose of data collection was of structured type. It was

designed keeping in mind the research problem which included close ended questions. The

questionnaire was given to the respondents who were expected to read and understand the


Padma International Tractors, Manvi questions and write down the reply in the space meant for the purpose in the questionnaire

itself.

Sampling unit

Sampling unit refers to smallest possible individual eligible respondent. In my study the

sampling unit is single individual user of tractor.

Sampling size

This refers to the total number of respondents selected from the universe to constitute a

sample. The size of the sample should neither be excessively large, nor too small. It should be

optimum. An optimum sample is one which fulfills the requirement of efficiency,

representativeness, reliability and flexibility. The sample size for my research is hundred

respondents.

Sampling frame

Frame is the list of respondents i.e. list of all the users of different tractors

Data Analysis and Interpretation

For the purpose of analyzing, raw data was summarized in a master table and from this table

the results have been carried out. The questions having multiple/alternative choices. In case

of ranking questions the total score has been added and final ranking is given. In case of

checklist questions the average of total no 50. of responses was calculated. In case of

explanatory questions, the general suggestions were summarized.

LIMITATIONS TO THE RESEARCH


Padma International Tractors, Manvi As the data will be collected through questionnaire, there are chances of biased

information provided by the respondents.

The survey is limited only to Manvi Taluk, Raichur district

As the sample size is small compared to the total population the outcome

cannot be generalized.

Respondents are basically villagers they usually not take more emphasis on

these questions.

ANALYSIS

Tractor usage-purpose

Frequen

cyPerce

nt

Valid Perce

nt

Cumulative

Percent

Agriculture

41 83.3 83.3 83.3

Industrial purpose

2 3.3 3.3 86.7

Loading and unloading

7 13.3 13.3 100

Total 50 100 100Table number 1

Tractor usage-purpose



83%

3%

13%

agriculture industrial purpose loading and unloading

The field survey clearly indicates that the profession of the customer plays an important role on the purchase of tractors. The above table shows that out of 50 respondents, 83% respondents are from as agriculture 14% respondents are from loading and unloading and 3% respondents are used industrial purpose. The agriculturists have purchased the tractors and therefore agriculture is the main profession

FACTORS INFLUENCING TO PURCHASE THE TRACTOR

Frequen

cyPerce

nt

Valid Perce

nt

Cumulative

Percent

Friends and relatives

12 23.3 23.3 23.3

Company representatives

16 33.3 33.3 56.7

Dealers 22 43.3 43.3 100Total 50 100 100

Table number 2

FACTORS INFLUENCING TO PURCHASE THE TRACTOR



23%

33%

43%

friends and relatives company representatives dealers

It was found that among 50 respondents 43% respondents of them were in group of company dealers, 23% respondents of them were in group of friends and relatives, remaining were in the groups of from company representatives. Most of the people are buying tractors from the dealers.

SATISFACTION LEVELS

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Yes 48 96.7 96.7 96.7No 2 3.3 3.3 100Total

50 100 100

Table number 3

As per the study most of the respondents are satisfied with the sonalika tractors



VEHICLE PERFORMANCE

Frequen

cyPerce

nt

Valid Perce

nt

Cumulative

Percent

Features 7 10 10 10Low maintenance

22 43.3 43.3 53.3

After sales services

8 16.7 16.7 70

Fuel consumption

11 26.7 26.7 96.7

Others 2 3.3 3.3 100Total 50 100 100

Table number 4

The chart showing vehicle performance



10%

43%

17%

27%

3%

features low maintenance after sales services fuel consumption 5

As per the study it reflects that most of the respondents goes for the sonalika tractors because the maintenance cost of the sonalika tractor is low and the fuel consumption is good

MAINTENANCE COST

Frequen

cyPerce

nt

Valid Perce

nt

Cumulative

Percent

Extremely satisfied

11 23.3 23.3 23.3

Satisfied 21 40 40 63.3Neutral 11 26.7 26.7 90Dissatisfied

7 10 10 100

Total 50 100 100 Table number 5



The chart showing maintenance cost

23%

40%

27%

10%

extremely satisfied satisfiedneutral dissatisfied

As per the study 40% of the respondents are satisfied with the maintenance cost and the 10% of the respondents are dissatisfied with the maintenance cost of the sonalika tractor

AWARENESS ABOUT POWER STEERING

Frequenc

yPercent

Valid Percent

Cumulative Percent

Yes 50 100 100 100Table number 6

All the respondents of the survey are known about the power steering available for the sonalika tractor


Padma International Tractors, Manvi FINANCING OPTIONS

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Yes 28 56.7 56.7 56.7No 22 43.3 43.3 100Total

50 100 100

Table number 7

As per the study 57% of the respondents needs the financial help for purchasing of tractor and 43% of the respondents do not need the financial help

PERFORMANCE OF SAFETY FEATURES

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Excellent

12 23.3 23.3 23.3

Very good

9 16.7 16.7 40

Average 25 53.3 53.3 93.3Bad 4 6.7 6.7 100Total 50 100 100

Table number 8



The chart showing the performance of safety features

23%

17%53%

7%

excellent verygood average bad

As per the study the performance of the safety features 53% of the respondents says average and 17% of the respondents says very good and 23% of the respondents says excellent. And 7% of the respondents says bad.

QUALITY OF SERVICE PROVIDED BY DEALERS

Frequenc

yPerce

nt

Valid Perce

nt

Cumulative Percent

Extremely satisfied

9 20 20 20

Satisfied 16 33.3 33.3 53.3Neutral 25 46.7 46.7 100Total 50 100 100

Table number 9



The chart showing the Quality of service provided by dealers

20%

33%

47%

extremely satsfied satisfied neutral

As per the study most of the respondents are neutral about the free service and 33% of people are satisfied with the free service of sonalika tractors

VALUE FOR SERVICE

Frequen

cyPerce

nt

Valid Perce

nt

Cumulative

Percent

Very good 11 20 20 20Good 18 36.7 36.7 56.7Economical

19 40 40 96.7

Low 2 3.3 3.3 100Total 50 100 100

Table number10



The chart showing the value for service

20%

37%

40%

3%

very good good economical low

As per the study the customer perception about the charges of the service 40%of the respondents says it’s economical and 37%of the respondents says good.

VEHICLE DURABILITY

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Very good

8 10 10 10

Good

26 56.7 56.7 66.7

Fair 16 33.3 33.3 100Total 50 100 100

Table number 11



The chart showing vehicle durability

10%

57%

33%

very good good fair

As per the study the most of the customers satisfied regarding the condition of vehicle because the maintenance cost is also low

AVAILABILITY OF GENUINE SPARES

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Strongly agree

21 40 40 40


Padma International Tractors, Manvi Agree 22 46.7 46.7 86.7Disagree

7 13.3 13.3 100


The chart showing the availability of genuine spares

40%

47%

13%

strongly agree agree disagree

As per the study most of the respondents are agree that the authorized service station has sufficient and genuine spares

AVAILABILITY OF ALL SPARES ON TIME

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Yes 25 50 50 50No 25 50 50 100Total

50 100 100


Padma International Tractors, Manvi Table number 13

As per the study it says half of the people agrees and half of the people disagree regarding the availability of all spares on time with dealers.

DEALER RELATIONSHIP

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Yes 13 26.7 26.7 26.7No 37 73.3 73.3 100Total

50 100 100

Table number 14

As per the study most of the respondents do not have any problem with authorized service station

PRODUCT RECOMMENDATION

Frequenc

yPercen

t

Valid Percen

t

Cumulative Percent

Yes 40 83.3 83.3 83.3No 10 16.7 16.7 100Total

50 100 100

Table number 15


Padma International Tractors, Manvi As per the study most of the respondents are happy with the performance of the sonalika tractor so they are recommended to buy the sonalika tractor to others.

DEALER SERVICE RANKING

Frequen

cyPerce

nt

Valid Perce

nt

Cumulative

Percent

Mechanical service

4 6.7 6.7 6.7

Availability of spares

22 43.3 43.3 50

Warranty 7 13.3 13.3 63.3Maintenance

9 20 20 83.3

Re-sale value

8 16.7 16.7 100


The chart showing the dealer service ranking



7%

43%

13%

20%

17%

mechnical service availability of spares warrentymaintenance re-sale value

As per the study according to the ranking of the sonalika tractor most of the respondents are rated about the availability of the spares and rating is very low for the resale value of the sonalika tractors.

SUGGESTIONS:

1) Many consumers felt that the price of Sonalika tractors in very high.

Therefore they suggested for a reduction in the price of Sonalika tractors.

2) Sonalika Company should adopt latest technologies for further improvement

of the fuel efficiency of its tractors.

3) The users have complaint regarding after sale service of the dealers has

highly unsatisfactory, it is suggested that the company should advice the

dealers to render better after sale service to its customers.


Padma International Tractors, Manvi 4) It has been suggested that to create awareness & popularize its tractors

Sonalika Company should go for frequent advertisements in magazines

newspapers, hoardings and T.V. advertisements.

5) The company should assure ready availability of spare parts through the

dealers.

6) The price of spare parts is also expensive as compare to competitor’s spare

parts. Hence it is suggested that the company provides necessary spares at

reasonable prices.

CONCLUSION

Sonalika has various advantages over its competitors such as low fuel

consumption, high speed, low maintenance cost, & easy availability

As tractor is meant for pulling load, sonalika has all these qualities to pull

maximum load due to high backup torque.


Padma International Tractors, Manvi People prefer Farmtrac and Ford tractors as per the study and people like

engine performance as the main consideration of purchasing tractors.

They basically affected by the displays in providing information

regarding new products so company should create some awareness

regarding this and make some hoarding on roads to attract tractor users

with new features mention on it.

Respondents are basically from rural areas so they are not affected by the

newspapers, because in their daily life they never spent time on

newspaper and their purchasing decision followed by dealers, social

network and hoardings.
