The tractor maker aims to produce 120,000 units in FY2017-18, utilising 60 percent capacity of this domestic market-specific line.
24 Apr 2017 | 28285 Views | By Mayank Dhingra
Tractor manufacturer Sonalika ITL has opened a new state-of-the-art assembly line at the company’s existing plant in Hoshiarpur, Punjab. The new manufacturing capacity has come up in an area of 225,000 square metres.
With the inclusion of the new fully integrated multi-model assembly line, Sonalika ITL sees its total ...
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Tractor manufacturer Sonalika ITL has opened a new state-of-the-art assembly line at the company’s existing plant in Hoshiarpur, Punjab. The new manufacturing capacity has come up in an area of 225,000 square metres.
With the inclusion of the new fully integrated multi-model assembly line, Sonalika ITL sees its total production capacity being scaled up by 200,000 units annually. The older line, with a capacity of 100,000, will now cater exclusively to exports, which, in FY2016-17, clocked 12,241 units (+29.3%).
Set up with an investment of Rs. 500 crore, the second line is more environment friendly, with natural light and ventilation fulfilling most of the requirements and also improves on safety parameters, with compliance to OHSAS standards.
The equipment includes implementation of various modern-day production technologies, like Pokayoke systems, under-pit conveyors, power and free conveyors and a robotic chassis paint shop.
The layout has been designed such that the most critical sub-assembly lines, the differential assembly, gearbox assembly and the engine assembly find themselves in close proximity to one another, offering smooth and quick flow, until they all come together to form the single chassis of the tractor. This has helped the company optimize takt time to 2 minutes, claimed as being better than the domestic market leader, Mahindra & Mahindra’s that of 3.18 minutes.
With a total capacity of 225 units per shift, the recently functional assembly line is currently operating on a daily production plan of 300 units, being produced in two working shifts. Sonalika ITL aims to produce 120,000 units till the closing of FY2017-18, utilizing 60 percent capacity of this domestic-specific line.
With total domestic numbers clocking at 81,531 units (+19.6%) in FY2016-17, the company has targeted growth of around 50 percent in FY2017-18, with full capacity utilisation projected within the next five years.
Independent exports are also planned to grow to 50,000 units by 2022, along with 50,000 units being produced for its Japanese JV partner, YANMAR, thus, achieving full capacity utilisation on both the lines.