The Sonalika Group, renowned for its Solis brand of tractors and agricultural equipment, is planning to invest approximately Rs 1000 crore to expand its global presence.
Out of this total investment, Rs 800 crore will be allocated towards establishing a new manufacturing facility dedicated to producing tractors for export. Additionally, around Rs 150 crore will be utilized to develop customized products to cater to the specific requirements of customers in Latin America, Europe, the United States, Oceania, and Southeast Asia.
Gaurav Saxena, the CEO (International Business) of International Tractors Limited, stated, “To facilitate exports, we are setting aside $100 million to construct a specialized facility. This new unit will have a total installed capacity of 100,000 units and will be operational within the next two years.”
According to Saxena, exports currently contribute one-third of the company’s overall revenue. He added, “There are approximately 1.5 million tractors sold worldwide. Our goal is to be among the top three tractor brands globally by 2030.” With increased production capacity and a range of tailored products, ITL aims to boost exports to 100,000 units within the next seven years, compared to the current figure of about 35,000 units.
In addition to conventional fossil-fuel-powered tractors, ITL is heavily investing in the development of green technologies to drive their agricultural equipment. Sushant Sagar Mittal, Executive Director at ITL, revealed, “We are working on a series of agricultural equipment that will operate on electric, hydrogen, and alternative fuels.” The company will unveil its electric tractor in New Delhi on Saturday and in Hanover, Germany, next month.
ITL currently employs 600 engineers at its R&D centers in Hoshiarpur, Punjab, and Noida, Uttar Pradesh. Despite the challenging global trade conditions caused by the pandemic, Saxena emphasized that ITL has managed to maintain stable operations overseas. He stated, “Inflation and geopolitical conflicts have impacted international markets. However, even though India’s overall automobile exports have declined by 30%, we have increased our market share by 9%.” Saxena proudly announced that ITL now accounts for 36% of all tractor exports from India. In the current financial year, the company anticipates exporting approximately 35,000 units, a figure similar to the previous year. However, ITL expects international business to gain momentum from the following year onwards.
In addition to exporting tractors from India, ITL has five assembly plants located in Brazil, Turkey, Algeria, Thailand, and the United States.
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