Sonalika group.doc

Padma International Tractors, Manvi
BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 1
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

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 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 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.
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 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 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.
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
 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
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
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.
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
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
SONALIKA
GROUP
INTERNATIONAL
TRACTOR LIMITED
INTERNATIONAL
CARS AND MOTOR
LIMITED
INTERNATIONAL
AUTOTRAC
FINANCE LIMITED
SONALIKA AGRO
INDUSTRIES

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 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.
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.
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. ManPower: The firm has sufficient staff of machines. There are 6 mechanics and 4 helpers
and 2 foreman
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.
Marketleaderstrategies:
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
OPPORTUNITIES:-
 Unexplored Markets for Exports :-
Mexican & Brazilian markets
THREATS:-
o Competitors
o High Maintenance cost
o 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. 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 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
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
 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
Frequency Percent
Valid
Percent
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 50 100 100
Table number 1
Tractor usage-purpose
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
83%
3% 14%
agriculture industrial purpose loading and unloading

FACTORS INFLUENCING TO PURCHASE THE TRACTOR
Frequency Percent
Valid
Percent
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 43.3 100
Total 50 100 100
Table number 2
FACTORS INFLUENCING TO PURCHASETHETRACTOR
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.
23%
34%
43%
friends and relatives company representatives dealers

SATISFACTION LEVELS
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 48 96.7 96.7 96.7
No 2 3.3 3.3 100
Total 50 100 100
Table number 3
As per the study most of the respondents are satisfied with the sonalika tractors
VEHICLE PERFORMANCE
Frequency Percent
Valid
Percent
Cumulative
Percent
Features 7 10 10 10
Low
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 3.3 100
Total 50 100 100
Table number 4

The chart showing vehicle performance
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
Frequency Percent
Valid
Percent
Cumulative
Percent
Extremely
satisfied
11 23.3 23.3 23.3
Satisfied 21 40 40 63.3
Neutral 11 26.7 26.7 90
Dissatisfied 7 10 10 100
Total 50 100 100
Table number 5
10%
43%
17%
27%
3%
features low maintenance after sales services fuel consumption 5

The chart showing maintenance cost
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
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 50 100 100 100
Table number 6
All the respondents of the survey are known about the power steering available for the
sonalika tractor
23%
40%
27%
10%
extremely satisfied satisfied neutral dissatisfied

FINANCING OPTIONS
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 28 56.7 56.7 56.7
No 22 43.3 43.3 100
Total 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
Frequency Percent
Valid
Percent
Cumulative
Percent
Excellent 12 23.3 23.3 23.3
Very
good
9 16.7 16.7 40
Average 25 53.3 53.3 93.3
Bad 4 6.7 6.7 100
Total 50 100 100
Table number 8

The chart showing the performance of safety features
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
Frequency Percent
Valid
Percent
Cumulative
Percent
Extremely
satisfied
9 20 20 20
Satisfied 16 33.3 33.3 53.3
Neutral 25 46.7 46.7 100
Total 50 100 100
Table number 9
23%
17%
53%
7%
excellent verygood average bad

The chart showing the Quality of service provided by dealers
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
Frequency Percent
Valid
Percent
Cumulative
Percent
Very good 11 20 20 20
Good 18 36.7 36.7 56.7
Economical 19 40 40 96.7
Low 2 3.3 3.3 100
Total 50 100 100
Table number10
20%
33%
47%
extremely satsfied satisfied neutral

The chart showing the value for service
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
Frequency Percent
Valid
Percent
Cumulative
Percent
Very
good
8 10 10 10
Good 26 56.7 56.7 66.7
Fair 16 33.3 33.3 100
Total 50 100 100
Table number 11
20%
37%
40%
3%
very good good economical low

The chart showing vehicle durability
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
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly
agree
21 40 40 40
Agree 22 46.7 46.7 86.7
Disagree 7 13.3 13.3 100
Total 50 100 100
Table number 12
10%
57%
33%
very good good fair

The chart showing the availability of genuine spares
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
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 25 50 50 50
No 25 50 50 100
Total 50 100 100
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.
40%
47%
13%
strongly agree agree disagree

DEALER RELATIONSHIP
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 13 26.7 26.7 26.7
No 37 73.3 73.3 100
Total 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
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 40 83.3 83.3 83.3
No 10 16.7 16.7 100
Total 50 100 100
Table number 15
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
Frequency Percent
Valid
Percent
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 63.3
Maintenance 9 20 20 83.3
Re-sale
value
8 16.7 16.7 100
Total 50 100 100
Table number 16
The chart showing the dealer service ranking
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.
7%
43%
13%
20%
17%
mechnical service availability of spares warrenty
maintenance re-sale value

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.
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.
 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.

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