ICML to Compete with Mahindra Scorpio


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he Rs 5,000-crore Sonalika Group, maker of the multi-utility vehicle (MUV) Rhino, has set itself an ambitious task to become an end-to-end automobile player with presence across segments. The company would look to penetrate deeper into the car market and strengthen its SUV portfolio. International Tractors’ president, international business, Rajiv Wahi told FE the company is open to forging alliances with foreign partners to source the requisite technology to power its automobile dream. “As a group, automobile is one of our three segments apart from tractors and farm equipment. We realise the potential in the automobile space and want to be present in all segments,” he said. He did not share the specific segment it would enter first but said that the company is still finalising its plans. Wahi said the first vehicle will be a sports utility vehicle (SUV) or a crossover. “The platform of the vehicle will be able to produce a sedan also.”

In August the group’s flagship ICML entered into an agreement to supply engines for General Motors multi-utility vehicle Tavera. Before that in 2008 the company had announced plans to invest Rs 700 crore to develop and launch ‘world cars’ with technical and design help from the leading Italian car design company Pininfarina. The company is also likely to start assembly operations in Africa for Rhino, though the exact location is yet to be decided. At present, Sonalika assembles Rhino at its facility in Amb in Himachal which has an installed capacity of 24,000 units per annum.

To fund its expansion plans Wahi said that the company is also open to the IPO route but ruled out any immediate plans for it. “We have a comfortable cash position to carry out our plans,” he added. The group has firmed up its plans to step tractor exports by more than 25% in the next two years. Wahi said that the company is going to export anywhere from 75,000-80,000 tractor units in the next two years from the current exports of about 50,000 units. He also said that the percentage share of exports would double to 20%.
source - financial express
 

350Z

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Howcome? First, a manufacturer officially states to release the product by 2009, soon a year passes silently without a noise. One fine day, we again read the news report about it. Actually according to ICML, by this point of time, their ‘Top-End SUV’ manufacturing project capacity should have increased by Rs.300 Crores, but alas, the car has not even seen light of the day as yet. (More Details). Anyways, Rhino is already not the most popular car today in India and with Top-end SUV, ICML will require to finish their complete homework first. Otherwise, in this automobile battle ground many manufacturers have tried their luck with various models but only a few succeeded and rest just vanished into thin air.

Drive Safe,
350Z
 
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Oh!! this is just another Hype from ICML & they will release this car only by next emission norms.

By that time it will be the same case of Rhino.

I dont think we have Rhinos selling anywhere, atleast the showrooms here are closed :)
 
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I really pity ICML. Indian manufacturers trying to graduate from small time players to the open market have a real hard task in gearing up, and it involves plenty of cash and tech, which ICML might not have. The Rhino which I had for a month was one of the best cars my dad had. Sonalika is a dying cause.
 
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well now icml is thinking to beat xuv500!!

Sonalika looks at IPO down the road

Utility vehicle-making unit of the company, International Cars and Motor, will also place 10% in PE deal.

International Cars and Motor Ltd (ICML) plans to raise funds through a public offer in the next 3-4 years, according to the utility vehicle-making company of the Rs 3,000-crore Sonalika Group. The Punjab-based entity is placing 10 per cent stake in a private equity deal, its vice-chairman A S Mittal said earlier this week.

The 1989-incorporated ICML, functioning from Hoshiarpur, makes the Rhino series of multi-utility vehicles that can seat seven-eight passengers. They function both as taxis and private vars.
These days, the company wants to invest in developing a sports utility vehicle with a foreign partner. “We are talking to a few private equity companies for selling 10 per cent stake in the company. We are looking to raise Rs 450 crore,” said Mittal. “Further, we will look at hitting the capital markets in the next three or four years.”

The Mittal family, owners of the Sonalika Group, has been into making farm equipment since 1969. They started making tractors in 1996, and entered the utility vehicle sector, which is slated to grow at 16 per cent in India. Rhino was launched in 2006.

If the private equity stake sale goes through, it will place a rough valuation of ICML at Rs 4,500 crore. Mittal declined to name the private equity entities his company was in talks with, but said the deal would happen by the year-end.

ICML’s sports utility vehicle, to be launched next year, is set to compete with Mahindra’s XUV 500, and Tata Safari. The company will display a concept vehicle in the Auto Expo in Delhi early next year. Rhino sells in select markets upcountry; its SUV will have a pan-India presence.

International Tractors, the tractor-making company of Sonalika, is looking at acquisitions. Through this route, it hopes to enter the US and European markets, which have stringent emission norms.

“There were several companies available to us for acquisition,” reveals Mittal “We were also looking at local manufacturing, as places like Turkey are a good manufacturing and distribution location. We are doing due diligence of a target company.”

The company may shell out Rs 300 crore to Rs 400 crore on the deal. It is increasing its tractor-making capacity in India to 100,000 units per annum from the current 60,000 units. It had recently announced a completely knocked-down operation in Myanmar, whose government provides huge support to agriculture companies.
 
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