International Tractors Limited (ITL), makers of Sonalika brand of tractors, on Wednesday said it would invest Rs.100 crore to enhance its production capacity to meet future demand. The investment will help the company increase its production capacity to 1-lakh tractors from 60,000 units annually at present.
“Besides enhancing capacity of our existing Hoshiarpur facility, we will establish a new manufacturing facility in Bihar with an annual production capacity of 20,000 units. Overall, Rs.100 crore will be invested on these two projects,” said ITL Vice-Chairman A. S. Mittal. ITL is India's third largest tractors and agriculture equipment manufacturers.
“The Bihar plant, which will be functional by next year, will strengthen our presence in the eastern region, while the process of upgrading Hoshiarpur plant will be completed by 2011 end,” Mr. Mittal said. The company produces tractors of capacity ranging from 30 hp to 90 hp.
“All the brands of Sonalika group are doing well in its respective segments across country during April-November 2010-11. We expect our tractor sales to cross 51,000 units by the end of the current fiscal. So far, we have achieved 17 per cent sales growth and sold 25,872 tractors,” Mr. Mittal added.
ITL exports its Worldtrac 90 RX to the U.S., Australia, Europe and various African and South American countries. It has an international distribution network of over 1,800 dealers in over 65 countries.
