| | Sonalika Group To Drive into U.S.A
Sonalika Group, makers of tractors, agri-implements, car and engine components, is planning to set up an assembly plant in the US for tractors and engines. The plant is likely to come up in the next six months.
“Our engines are approved by the Environment Protection Agency, Washington. This will help us in penetrating into the US market. We are already in agreement with General Motors for supplying diesel engines and hope to supply 40,000 engines an year,” Mr L.D. Mittal, Chairman of the Group, told Business Line. The total investment into the US plant will be around Rs 100 crore and the company is planning to raise it partly through internal accruals and partly through debt.
“Indian tractors are in demand in the US, owing to cost-competitiveness and high quality. We will be sending these as Completely Knocked Down units,” Mr Mittal said.
The company has also plans two tractor assembly plants – one each in Turkey and Romania.
Earlier, the company announced its plans for launching one SUV and two sedans within two years. These will be manufactured at the company's Himachal Pradesh plant which currently produces 24,000 vehicles annually. “We will double the production capacity, once these new cars come,” Mr Mittal said.
Production capacity at its Hoshiarpur plant in Punjab, where it manufactures tractors, engines and diesel gensets, will also be enhanced.
“We are also targeting 50 per cent expansion of our tractor production from 200 a day to 300. At present, we sell 10,000 diesel gensets a year. We plan to take this to 25,000 by next year,” Mr Mittal explained. The company has put aside Rs 500 crore for expansion and new launches, which will translate into 1,000 more jobs for India [Source:Businessline]