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The process of liberalization and globalization of the Indian economy has led to
the sustained growth and development of the competitive capabilities of Indian
corporate entities. Today, there is a marked difference in the nature and
dynamics of the engagement of Indian companies in overseas markets. Indian
entities are on a continuous lookout for new investment destinations, both in
terms of markets and resources. In our new segment, Global Footprint, we take a
closer look at Indian companies that have had extensive interactions with global
corporations, professionals, capital, ideas, and practices, and, in the process,
have made their presence felt globally. This month, we attempt to unearth the
incomparable potential of Sonalika International.
From humble beginnings in 1969 to emerging as the leader in tractor and farm
equipment manufacturing in India, Sonalika Group has come a long way. Ever since
its inception, the group has created a rich culture of serving the cause of farm
mechanisation in India and abroad. The sapling that was planted many years ago
has developed into a giant tree that is providing its protective shadow and
livelihood to thousands of employees, customers, vendors and dealers. The
company has been working tirelessly to improve the life of the farming community
across the globe.
Today, Sonalika International, one of India’s top automobile and agriculture
machinery manufacturers, is worth more than Rs.5, 000 crores and is registering
an average growth of 30 percent. It has sold more than 3,00,000 tractors,and has
emerged as the country’s fastest growing tractor manufacturing company. The
group boasts of a total turnover of $800 million and is proud to have a
dedicated team of over 3,500. This phenomenal growth has been possible primarily
due to the effort of the work force and the unflinching support of customers,
dealers, bankers, financial and strategic partners and farmer’s organisations.
The company has always laid special emphasis on using modern technology in
manufacturing processes. The R&D division has always kept abreast with
technological developments in different parts of the globe, and adopts the most
suitable technology based on market requirements. These concerted efforts have
enabled the development of a new range of Euro III compliant tractors with a
contemporary design for the European and US markets.
Business Verticals
The companies of the Sonalika Group include:
• International Tractors Ltd. - Incorporated in 1995, International Tractors
Limited has carved a niche for itself in the tractor manufacturing industry. ITL,
one of the top three tractor selling companies in India, is the proud
manufacturer of bestselling tractors between 20 HP to 90 HP. These exceptional
tractors cater to the demands of the agriculture sector not just in India, but
also in other countries. ITL’s top-end manufacturing processes, international
quality control systems and advanced research and development facilities are
ISO-9001:2008 certified by the joint accreditation system of Australia and New
Zealand. Further, ITL is the first tractor manufacturing company in the country
to be accredited with ISO-14001 certification, TS16949.
• International Cars & Motors Ltd. - After carving a niche for itself in the
field of farm equipment and technically advanced tractors, ITL has now ventured
into the MUV segment. The company has established a new state-of-the-art
facility in Amb in Himachal Pradesh for this purpose under the name,
International Cars and Motors Limited (ICML).
Sonalika Agro – It was established in 1969 to support Indian farmers with
mechanization technology to facilitate persistence of green revolution. Today,
Sonalika Agro has emerged as a pioneer in manufacturing advanced agricultural
implements suiting the needs of global farmers. Agro Industries Corporation, the
group’s maiden venture, is one of the foremost farm equipment and implements
manufacturing companies in India with 80 percent market share in threshers.
Diverse Product Range
ITL produces tractors ranging from 18 HP to 90HP in 2WD. Recently, ITL also
developed a new series of Worldtrac tractor with 12x12 Carraro transmission,
available in 60HP, 75HP and 90HP. Sonalika Agro Industries is a leading
implement manufacturing company in India manufacturing a wide range of Tractor
Mounted Combine Harvesters, Multi Crop Threshers, Harvesting Attachments,
Ploughs, Harrows, Rotavator, Trolleys, Crop Reapers, Potato Planters, Maize
Sheller (Corn Threshers), Potato Diggers, Seed cum Fertilizers Spreaders, Diesel
Engines, SUV’s and Three Wheelers. ITL is, in fact, the only tractor
manufacturing company in India, which manufactures implements. Some of the
latest product launches include Diesel Generators, Power Tillers, Pump sets,
Cranes and Rice Planters.
Global Presence – Journey from Domestic Company to Foreign Entity
Apart from having a vast network of dealers and associates in different parts of
India, the group has extended its footprint in over 65 countries across the
globe. Their products have already penetrated countries like Algeria, Australia,
Bangladesh, Benin, Brazil, Burkina Faso, Cameroon, Canada, Congo, Croatia,
Ecuador, France, Gambia, Ivory Coast, Kenya, Madagascar, Malawi, Mauritius,
Mozambique, Nepal, Niger, Nigeria, Senegal, Serbia, Slovenia, South Africa, Sri
Lanka, Sudan, Uganda, USA, Zambia and Zimbabwe.
In the last few years, Sonalika tractors has managed to penetrate various
markets in Africa through retail and line of credit business. In fact, the
company is working closely with governments of several African countries for the
provision of tractors to the continent through line of credit business. Among
the many success stories include the supply of 265 tractors to Sierra Leone in
April 2009. The other countries in Africa that have benefited from the group
line of credit endeavour include Armenia, Benin, DR Congo, Mali, Senegal and
Togo. Sonalika tractors are used for both cultivation and haulage applications
in Africa.
One of the most decisive reasons for the rapid strides made by the group in
Africa is the presence of strong after-sales support coupled with the easy
availability of spare parts. The company has established a tractor assembly line
in Nigeria in collaboration with a local business partner.
The group’s sincere commitment and focus towards developing foreign markets and
boosting exports can be gauged from the steady stream of visitors, both dealers
and technology partners that have visited the company’s establishments in the
recent past. Sonalika Group was proud to host delegations from Japan, Ecuador,
Cameroon, Mexico, Uganda, Italy, Angola, Algeria, South Africa, Burkina Faso,
Iran, Syria, Oman and Gambia.
Ploughing New Avenues Worldwide– Opportunities and Challenges
Sonalika Group’s global expansion has been impelled by its singular approach –
emerging as a complete agricultural service provider. This involves offering a
wide range of customized agriculture solutions, including tractors, agricultural
implements and even specialised training. These solutions are in accordance to
the varied requirements of different countries. This unique customer centric
approach has enabled the Sonalika Group to identify with the prospective markets
and sell better.
Yet another decisive advantage is that the company boasts of the widest product
range in India. Since Sonalika manufactures both tractors and the corresponding
implements, it paves for a more responsive and robust performance.
Sonalika’s foray into the world arena has been a puissant tale, but it has not
been without onerous challenges. Every region offers unique challenges in terms
of agricultural practises, connectivity, language, financial structure and
cultural intricacies. So while the African continent is characterised by
abundant resources, the company, during the initial periods, was faced with
daunting challenges like lack of institutional financing, presence of an
unskilled and untrained work force and under utilization of precious natural
resources. In South America, the company’s expansion plans were confronted by
problems of connectivity, time difference and language. In Europe, an extremely
protected and regulatory market required Sonalika to invest considerable amount
of time, effort and resources to fulfil the exceptionally high regulatory
requirements and create e-marked agricultural machinery and attachments.
Whether the language barrier in South America or the financial hindrances in
Africa, Sonalika International has overcome these unique set of challenges with
strategic planning and robust stewardship. Regular visits conducted by the
senior management to the overseas business hubs has paved way for an opportunity
to research, analyze and strategize various business opportunities and
verticals.
The group has been a regular participant in various international and
agricultural trade fairs in different parts across the globe. Most recently,
Sonalika was part of Agritechnica’11 in Hanover in Germany and the Enterprise
India Trade Show’11 at Myanmar. The company also had a successful showing at the
prestigious Moultrie Expo, considered to be North America’s premier annual farm
show.
Sonalika Group has been able to blend with the diverse cultures of more than 70
countries and understand their business verticals. Customizing products by
understanding their product requirements and local cultural practices has been
the greatest achievement of the group’s operation in overseas work environments.
Here are a few success stories that underscore the massive strides made by
Sonalika International.
Ushering in the Green Revolution in Cameroon
In 2010, Sonalika Group was faced with a challenging task. The Government of
Cameroon was in need of 1,000 tractors and various implements for maize and rice
plantation and harvesting in a short span of time. The production and marketing
teams of the group executed the order worth Rs 200 crores in record time. In the
process, the company became the first ever to execute such a large order to any
African country, under the Government of India’s Line of Credit.
The Government of Cameroon also selected ITL, the group that manufacturers
Sonalika brand of tractors, as a partner to set up an assembly line of tractors
and a fabrication unit of implements.ITL has also trained local farmers on the
use, maintenance and service of tractors and implements. The most gratifying
aspect of this project is that Sonalika Group has been instrumental in ushering
in a green revolution in Cameroon.
Building Bridges to Bangladesh
It is easy to see why Bangladesh has emerged as the most valuable destination of
the Sonalika Group. The company has managed to capture over 20 percent of the
tractor and farm equipment market in the neighbouring country. This phenomenal
growth has been possible primarily due to the conduct of regular service camps
in different parts of the country and participation in agro expos. The company
conducted free mechanic training and sales training camps in different parts of
the country, including Meherpur, Chuadanga and Pirgonj. Sonalika’s tractors were
also featured in the Agro Fare 2010 in Dhaka.
Forging New Partnerships
The rising popularity of the Sonalika brand is attributed to the exceptional
craftsmanship of products and the inimitable quality culture of the company. The
massive investment undertaken by the company in its own world-class R&D wing has
also paid rich dividends. Further, technical collaborations with Renault of
France and Claas of Germany have helped Sonalika upgrade existing systems and
acquire cutting-edge technology. Strategic investments into the group by leading
international brands like Yamaha of Japan and JM Financials only reinforce the
global recognition achieved by the group. As the group continues to expand its
global footprint, it is keen to explore investment and JV opportunities in
international markets.
Today, Sonalika International has become synonymous with prosperity, success and
growth. With international technologies, state-of-the-art production units,
experienced teams and tailor-made solutions, Sonalika has fulfilled its
customers’ needs in India and abroad. In the years to come, Sonalika will take
on new challenges and climb new horizons of success that are still untouched and
unexplored.
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