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Sonalika Report

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The key takeaways are that tractors play a crucial role in farm mechanization and increasing agricultural productivity in India, but India lags behind other countries in tractors per hectare of land.

Tractors are used for land reclamation, carrying out crop cultivation operations, and providing energy to perform crop production operations by attaching suitable implements.

The tractor industry in India has expanded at a spectacular pace over the last four decades, growing to become one of the largest in the world in terms of production despite being relatively young compared to other countries.

TRACTOR INDUSTRY IN INDIA

India is primarily an agriculture-based country. Unfortunately, the agriculture sector has taken a back seat
so far. We lack mainly in farming implements. The tractor is the basis of mechanizations, but in India,
there are only 9 tractors per 1000 hectares of land whereas in the global arena, this figure is 93 tractors per
1000 hectares of land. In my opinion, unless farm mechanizations is given due importance, we cannot think
of a complete revolution. Advance technology and superior farm implements are the only way through
which we can increase our agricultural production. By this we can ensure a bright future for our country

ITL (SONALIKA)-11%

M&M-30%

TAFE-15%

ECHER-14%

PTL-11%

HMT LTD-3%

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, labor 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 crores. 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 INDIA INDIA RANK


TOTAL/AVG
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 is 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 labor shortage during harvesting increased the use of
tractor.

At the end of the day there are enough reasons to believe that the industry will grow because:

* 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 Sri Lanka, 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.

FUTURE OF TRACTOR INDUSTRY


The tractor industry in India has been on a growth trajectory since the second half of 2003-04, after going
through a minimum variation for consecutive years. The key factors driving this growth are increasing
farm incomes, aggressive financing resulting in easy availability of low-cost credit, sharp inventory
correction and strong export growth?

The demand in tractor industry is expected to grow mainly due to the agricultural sector, with the expected
increase in agricultural production. Also, the shift in trend for demand towards higher HP tractors is
expected to continue. This will be further strengthened by the launch of several new models. In the next 2-
3 year, demand for tractors is expected to increase significantly in the eastern states, where traditionally,
tractor usage has been low. Exports are expected to increase significantly as several Indian players are
targeting the “hobby farming” segment in the U.S, which is considerably large. Also, tractors of most
Indian manufacturers comply with the emission standards accepted in the U.S. Most exports are likely to
be through overseas partnerships or joint ventures. McKinley has also forecasted tractor population
requirements of 75 lacks over the next 18 years vs. current population of 26 lacks. The extension of the
150 per cent deduction on R&D expenditure up to March 31, 2009, in the Budget 2008-09 will also
benefit the industry in terms of new product development besides increase in the area under irrigation
under the Bahrat Nirman Project and the micro irrigation scheme.

ABOUT THE SONALIKA GROUP

Established in 1969, Sonalika group from the very beginning has tried to understand customer need so that
they get better value for their money, hard earned. Sonalika has state of manufacturing, spread in acres,
located at Hoshiarpur and tax free zone at AMB in Himachal Pradesh. Sonalika is the one of the top 3
tractor manufacturing companies in India; other products include Multi utility vehicles, engines and
various farm equipments. Today the group stands tall with an approximate turnover of 3200 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. 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, they have been able to create a unique platform for
learning through success stories of industry leader. No, doubt that the sonalika products has created a
position for themselves not only in India but also in foreign market. To maintain quality even a micro level
is being taken care of and rectified. The industry has gradually transformed themselves into a world-class
player involved in building state-of-the-art products, solutions and technologies. Sonalika Foundation
intends to become a catalyst, encouraging there members to do more, capturing best practices for quality
and harnessing a greater range of resources, from the industry and beyond, to make a major impact on the
development. It has been their vision to cater to the needful agriculture and auto industry with quality
products through untiring dedication and activities. As they step in to their fifth decade of existence, they
continue to lead the development. Tractor and car plants work in 2 to 3 shifts depending upon volume of
work for maximum production. They continue to march ahead on road to success and glory driven by the
force of initiative and determination to have a leading position in the tractor industry in the days to come.
They have ventured in to automobile sector also with the launching of Rhino –MUV- to write another
success story.

VISION
The Dream Project of Sonalika group is to cater the agricultural and auto industry with quality abrasive
products through untiring dedication and leadership.

MISSION
Sonalika pay personal attention to their customers so that, they can build products they need, and not
merely sell the products they build.

CORE VALVES
To accomplish their 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. And 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.

Company is manned by cream of the industry’s best of technocrat and service staff. They are proud of
reputation as service & solution provider and innovator in agro industries. In a time marked by rapidly
changing technology, they have developed best of the R & D team and have also developed the excellent
quality control system to deliver high quality results in the industry.

Their actions are guided by their core values of integrity, quality, commitment, and innovation. They are
committed to living their values doing so, building a business as great as their products. Throughout their
history, company has earned a reputation for high quality and integrity, and this has been an asset of
incalculable value. They strive to live up to these expectations, not just because it is for good business, but
also because it is the right thing to do. Their core values are never to be compromise for immediate
success.

COMPANY PROFILE

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 one of the top five tractor manufacturing companies in India. The Sonalika Group product
listing does include the manufacturing of tractors, multi utility vehicles, Engines and various farm
equipments.
Today the group stands with an appropriate turnover of 1200 Crore INR. An average growth of 30% makes
it one of the fastest growing corporate in India. It’s also one of the free debt free company group
strengthens an approx mate staff count of 3000 employees.
The company works in maximum production with low cost value and safe environment. History foretells
that innovation is key to continued progress and when applied to technology, that touches human life, it ca
unfold a whole new economic phenomenon that has power to change the world.
With unique initiative like the Thought Leadership Forum, we have been able to create a unique platform
for learning thought success stories of industry leaders.
No, Doubt that the sonalika products has created a niche for themselves not in India but also in foreign
market.
As at our production any defect even at micro level is been taken care of and justified. The technology for
painting and machinery we use is high quality paint shop with a grade services and methods.
The industry has gradually transformed itself into a world class player involved in building state of art
products, solutions and technologies. Sonalika Foundations intends to become a catalyst encouraging our
members to do more, capturing best practices and assisting their reproduction and harnessing a greater
range of resources, from the industry and beyond, to make a major impact on development of society.
It has been our visions to cater the agriculture and auto industry with qualify abrasive products through
untiring dedication and leadership. As we step in to our fifth decade of existence, we continue to lead the
development of industry driven standards and initiative for the tractor industry in India.
GROUP COMPANY
I. International Tractors Limited (ITL)
II. Sonalika Agriculture Industries
III. International Cars & Motors Limited (ICML)
IV. International Auto-trace Finance Limited (IAFL)

International Tractors Limited (ITL


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 three 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 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.

Our Manufacturing Process, Quality Control systems and Research & Development facilities are ISO-2000
certified, by the joint Accreditation system Of Australia and New Zealand. We are the first Tractor
manufacturing company in the country to be accredited with ISO-14001. It bears testimony to fact that
company is having world-class R&D facilities, maintaining controls and systems of international Standard
and Environment norms.

We 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).

Tractors from ITL offer the perfect combination of power and economy in the agriculture utility segment.
For fast efficient operation in the rows and a minimum width, which is typical to small land holdings, the
performance of ITL tractors is unparallel. Sonalika tractors are easy to handle, with outstanding
maneuverability, low center of gravity and a tight turning radius, that combine to give fast and efficient
operation in the field or yard.

We also manufacture tractors whose specifications are approved and tested dimensionally and structurally,
according to EEC and other international standard and homologations. Some of our tractor models offer the
most technically advanced features available on the market today, including hydrostatic transmission,
power steering, differential lock and advanced safety devices.

PRODUCT OF ITL
DI-60RX DI-730 III DI-735 SONALIKA DI-55RX

DI-750III DI-750II DI-60 SENIOR DI-55

DI-750 DI-75 2WD DI-740 III DI-90

DI-39RX (North Speeds) DI-75 4WD DI-740 Rx42


DI-60 2WD DI-745 DI-47Rx D-604WD

DI340S DI-35 DI-732 III DI-730 II

Sonalika Agriculture Industries


Sonalika Agro was established in 1971 to support the Indian farmers with mechanization technology to
facilitate persistence of green revolution. Sonalika Agro Industries Corporation, the group’s maiden
venture is one of the foremost Farm equipments and implements manufacturing companies in India with
80% share in threshers alone. Its product line includes Combine Harvesters, Tractor/Self Driven straw
reapers, Potato Planters, Maize seller –cum-Dehuskers, Seed –Cum- Fertilizers Drills, various kinds of
threshers, etc.; Sonalika Agro is a pioneer in manufacturing tractors mounted combine harvester, which is
not popular in India, but also in various others countries across the globe. Today, the company is
supporting the farmers with world class farming equipment to ease the process of making the Green
Revolution II, a dream come true. In the light of the company's mission, highly qualified and experienced
staff is working as a family in the manufacturing facility at Hoshiarpur (Pb).

This plant is equipped with advanced technology to develop, manufacture and test the modern
products for the modern farmer. The company has a wide range of farm equipments and
implements to facilitate the farmers in all kinds of farming activities. It has a large dealer network
spread all over country and have approximately 80% share in Indian market of farm machinery. Its
products are also exported to Asian & African countries through various export promotion
counsels.

PRODUCT OF AGRO INDUSTRIES


Multi Crop Thresher Maize Sheller Cum Dehuskar, Sonalika Shrubmaster, Self Propelled

Sonalika Potato Planter, Mower, Automatic Cutter Model (HARAMBA) Sonalika Maize Sheller

Sonalika Terrace Blade, Sonalika Paddy Thresher, Seed cum Fertilizer Drill Machine, Sonalika Disc
Harrow

Combine Harvester, Sonalika Cultivator, Paddy Thresher Special Design, Sonalika Farm Trailer
Sonalika Diesel Engine, STRAW REPAER ROTAVATOR Mould Board Plough

Groundnut Thresher, Sonalika Mounted Disk Ridger

International Cars & Motors Limited (ICML


International Cars & Motors Limited (ICML) is a Group Company of the Rs 5000 Crores SONALIKA
GROUP. The Company is promoted by Mr. L.D.Mittal, Chairman, Mr. A.S.Mittal, and Vice Chairman Mr.
Deepak Mittal, Managing Director, who have vast experience in manufacturing of tractors, Farm machines
& Automobiles
ICML is a project of its kind and is the ‘Pride of Himachal Pradesh’. ICML has 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.
PRODUCTE OF THE CAR & MOTORS
RINHO

International Auto-trac Finance Limited (IAFL


• 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.
Whom to Finance
• Salaried
• Agriculturist
• Self Employed
• Partnership
• Pvt.co.,others
IAFL Schemes
• Scheme for salaried class
• Scheme for Business class
• Scheme for Taxi Purpose
• Scheme for Agriculturists
• Scheme for No Income Proof

Production
ITL has fully integrated and state of the art assembly facilitation for producing world class tractors.
Several productivity improvements in assembly line over the years have made it possible to manufacture
nearly 37000 tractors per Year.
Atomization of assembly line not only increased production capacity, but also provided a quantum jump to
the quality of assembled tractors.
ITL assembly line producing tractors in broad range from 30HP to 90HP with effective planning of
resources. Highlights of Assembly Facilitations:
Automated conveyors (Toe-in conveyors, slat conveyor and overhead conveyors.) for sub-assemblies as
well as for major assemblies and final product.
Quality, Assembly & Testing Tools:
• Hydraulic Test Rig Up to 1600Kg Lifting Capacity
• Millipore Testing Equipment. Torque calibrator
• Hydraulic presses
• A unique 3-Stage oil filtration system having modern facility of centrifuge filtration
• Batch type Special purpose machines (SPM) at various locations for washing of heavy castings,
components & subassemblies
• Pipe flushing machine for proper cleaning of hoses & pipes
• Induction Heaters for controlled heating of bearings
Standard testing procedures for final product
• Roller testing
• Road testing
• Field Testing
Research & Development

Brief of R & D :

• ITL R & D center is recognized by government of INDIA


• ITL R&D is a complete dep’t in itself starting from designing up to development,
implementation
Capabilities :

• Highly qualified team of engineers for designing of transmission & vehicle areas
• Vendor development is capable for the development of new projects components of R&D
through vendors & commercial settlement
• Vendor quality control is capable for ensuring quality requirements of components through
verification at vendor end
• High skilled workers are capable for making any types of prototypes
Facilities :

• High configuration workstations are used for design activities


• Team center is used for PLM concepts
• I-Deas, Solid-Edge & AutoCAD is used for 3D & 2D design activities
• Two transmission test rigs
• Circular test track (mgr) & Roll over protection test rig
• Hydraulic system test rig
• Endurance test rig for operator seat & fenders
• Pto test bed & Endurance test rig for MUV gearbox under commissioning
• Proto machine shop with HMC, radial drilling & turning centre
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INVESTOR RELATIONS

JOINT VENTURER

CVCI (Citigroup Venture Capital International)

Investment ITL-9.5%
Investment ICML-18%
In June 2005 the Citigroup Venture capital joined the company as financial partner, having
equity stake of 9.5%.

YANMAR, Japan

Investment -12%
Yanmar company limited, Japan joined the company in sept, 2005 as strategic partner, having
12% equity stake in the company.
YANMAR also a strategic partner of sonalika

Magma Shrachi Finance

The company entered into the joint venture with Magma Shrachi Finance limited on 10th
august 2007 to incorporate a new company with 74:26 (Magma-ITL) ratio of equity
participation for financing tractors of manufactured by the company.
DATA ANALYSIS
&
INTERPRETATION

1. Does u have any sonalika agro machine?


Interpretation

This was a straight forward question the answer to it was that about 67% of the respondents had AGRO
machine.

 Most of the have adopted the new technology but the remaining who are not using
AGRO machines may is due to the high prices of this type of machines.

1. Are you aware of all the Major Market Players of agro machines?

Interpretation

 Customers in particular area seems to be having good knowledge about all


machines. They are very much aware about most of the companies.
 Sonalika and escort are more familiar among the customers as compared to
other companies like HMT OR OTHERS.
 About 90%of customers were aware of SONALIKA, 89. % each of HMT and
others.
 All of the customers were aware about SONALIKA

1. Which Brand/Companies Machine does you own?


Interpretation
 Out of samples surveyed, 60% were responding for HMT.
 18% customers were having BFW Machines.
 10%were having ESCORTS.
 12%were having OTHER Machines.
1. For how long does u have that Machine?

Interpretation
 On this question the response came out to be that 21% of the respondents were
having CNC machine for the past 1-2 year only.
 23% were having it from the last 2-3 year, 13% had it from 3-4 year.
 10% had it from 4-5 year and the well established companies had it before the last
5 years.
1. Does price bothers you before purchasing any Machine?
Interpretation
 Most of the people about 49% of the people said yes Price bothers them before
purchasing any machine , cause the cost of mostly all the AGRO machines is so high that
people have to think before buying it.
 34% of the respondents said no price don’t bother them because they want just
the best at any price.
 17% replied that in some cases price is a major factor for them.
1. Which is the most important factor to you before purchasing any machine?

Interpretation
 From the survey it is clear that price is the most important factor before
purchasing any machine, about 25% of the respondent said this.
 22% said life of the machine is most important for them.
 Maintenance cost and After Sales Services had similar response about 18% and
15% respectively.
 Performance of the machine was also rated high, it was about 20%
1. Which factor is most influencing to you to purchase the Machine?

Interpretation
 Brand Image is given importance before making the purchase decision as 39% of
the respondents replied.
 Price again as analyzed earlier is the most important factor for making purchase
decision, 11% respondents replied that price is the most influencing factor for them.
 After Sales service was influencing for 31% respondents.
 Life of machine was rated high by 15% respondents.
 And other Factors like Handling, Size etc. influenced 4% of our respondents.
1. Who influences you more in buying decisions of AGRO Machines?

Interpretation
 Most of the respondents are in machine tools industry from a long time, so they
themselves are aware of what to buy; about 30% respondents said they themselves make
the purchase decision.
 The engineers are the persons who are responsible for the effective production,
37% of the buyers are influenced by their Engineers for making purchase decision.
 Past experience of the machine counts a lot 29% of the respondents are
influenced by that.
 Other factors were rated just 4%.
1. What impact has price got on the purchase of AGRO Machine?

Interpretation
 Price has a very high influence on 36% of the respondents.
 49% of the respondents were highly influenced.
 25% were having a medium impact, where as 8% were very less influenced by
the price of the machine.
1. From where does u come to know about the latest Machines and technology?

Interpretation
 Exhibitions and Trade fares are the major source of consumer’s knowledge,
through these they come to know about various new machines and technology.34% and
43% is the response to exhibitions and trade fares respectively.
 Through the Word of Mouth 13% of the respondents come to know about new
machines.
 Magazines and Newspaper are the source of information for 10% of the
respondents.
1. Are you satisfied with the after sales services of your SONALIKA Machine?

Interpretation
 On this question the answer as Fully Satisfied people is very less it is about 8%.
 The number of Satisfied persons is high it is about 44%, which is the highest
percentage, means most of the people are satisfied with the after sales services provided.
 Percentage of Neutral people is 27%, whereas dissatisfied respondents are 21%.
1. Are you satisfied with its overall performance of your Machine?
Interpretation
 Fully Satisfied people in any case are found very difficultly, so is the case here
the number of Fully Satisfied respondents are just 10%.
 Satisfied numbers of respondents are more about 46% of the respondents are
satisfied with the performance of their Machine.
 Neutral and Dissatisfied respondent are 25% and 19% respectively.
1. According to you which company gives most benefits to customers?

Interpretation
 The response to this question is not in favor of HMT, as persons in favor of HMT
are just 25%.
 SONLIKA which provides most benefits to its customers, 40% of the respondents
gives this evident.
 ESCORT is also above HMT in providing benefits to its customers 30% of the
respondents are in favor.
 OTHERS is the company which provides least benefits to its customers just 5%
of the respondents voted for it.
1. Next time which brand of AGRO Machine you would like to purchase if you
have to purchase another AGRO Machine?

Interpretation

 This question was asked to check the Brand loyalty of the respondents and their
thinking about HMT Machines. The response to it was very good as 45% of the
respondents said they will buy SONALIKA machines.
 26% of the respondents said they will go for HMT.
 ESCORTS 19%
 5%of the people said they will buy LOCAL BRAND machines or will buy
second hand machine of any company as due to high cost.
Facts and Findings
Facts and Findings

 From the survey we can find out that mostly the Machines are purchased by Large scale
uneducated people.

 In Machine industry the preference is given mainly to Price of Machine then to any other
factor.

 That the people who are sonalika customer are Loyal to it. But we should work to add
more and more customers.

 Customers come to know about latest machines and technology through Exhibitions and
Trade fares.

 That customers likes to purchase machines when offered discounts and other attractive
schemes.
 Performance of Machine, After Sales Services play an important part in improving sales.
So, sonalika should work on that.
SWOT ANALYSIS

STRENGTHS

➢ Sonalika brand Value.

➢ Extensive dealership and service network.

➢ Fully integrated plant in Hoshiarpur.

➢ Support of sonalika in terms of deploying latest manufacturing technology, providing


engineering solution and maintenance back up for trouble-free running of tractors.

➢ Wide product range.

➢ Sonalika has experienced staff.

➢ It has adequate infrastructure, qualified manpower, and office space and computer
network to support its activities.

➢ As a Govt. concern, it enjoys the full support of Govt.

➢ Efficiency of sonalika Tractors and Machines is better than other competitors.

➢ Its brand has been well accepted in the market.

➢ Export in wide range

➢ Quality

WEAKNESSES

➢ Turnover mainly coming from single product Tractor division.


➢ Morale of employees is not high.

➢ Present market share other then is very less.

➢ Less usage of media for marketing.

➢ Product-image among customer is not good.

➢ Financial health of company is poor.

➢ Since it is a Govt. enterprise, so change in Govt. policies may affect the profitability.

OPPRTUNITIES

➢ It is the biggest plant (in terms of area) among India’s manufacturers of Tractors.

➢ Availability of cheap and liberal finance to consumers.

➢ Multipurpose machines will offer new market for the company.

➢ Free service camps are organized for the customer satisfaction.

➢ It has huge network of dealership all over the country and international market.

➢ Provides good after sales services.

➢ Continuous growth in Tractor Industry in the Country.

THREATS

➢ Being a govt. undertaking its business may be affected due to change in govt. policy.

➢ Competition from other manufacture of transport vehicle.

➢ Not a good image of company among consumers.

➢ Slow down of expected demand of some of its products.

➢ Increased completion from domestic market as well as from international market.

➢ Lack of dealership in some cities.


INFORMATION
EVSLUATION
PURCHASE
PROBLEM
POST
PURCHASE
RECOGONITIO
RESEARCH
DECISION
OF
ALTERNATIVE
DECISION
N
S
SUGGESTIONS
SUGGESTIONS FOR THE COMPANY

 Sonalika should participate in more and more Exhibitions and Trade Fairs for the
promotion of their product.

 It should provide discounts to the customers like the other competitors.

 It should provide attractive credit policy, so as to attract even small scale producers.

 Concessions on Transportation and things like free Transit Insurance would attract more
customers.

 No purchase should be made till the old stock is disposed off.

 Company should take serious actions on the complaints of the buyers so that they are
fully satisfied and quality can be improved

 Worker participation in management should be encouraged. Company should give


autonomy to the employees so that they can take their own decision.
CONCLUSION
CONCLUSION

 In the last, I would like to say that the market position of sonalika is good. As the

company started 40 years back, it is competeting with new companies and holds largest share of

the Indian market.

 But the company has to do something extra to bring good image in the minds of

customers. Not only for new customer but for old customer also However according to the

survey the Machines are good.

 however Machines are not performing bad in the market but to get a good position in the

market it has to give some extra ordinary performance The new sonalika agro Machines are

performing well but due to its image of high price machine it will take some to get a place in

customer mind .Consumer service should be increased so more customer can be attracted.

 Instead of opening more dealerships the company should work on providing better after

sales services. It needs good publicity and marketing activities at the moment the only need to

run things in a proper and arranged manner which would increase the sale in a positive manner.
BIBLIOGRAPHY

BIBLIOGRAPHY

Books and Journals:


• Marketing Management: C.N. SONTAKKI
• Kotler , Principles of Marketing
• Kothari C.R., Research Methodology Methods and Techniques (Second Edition)
• Sonalika Catalogue

Web Sites:
• www.sonalika.com/

• www.wikipedia.com/

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