The Sonalika Group, the number three player in the Indian tractor market, is taking some steps to strengthen its position
11 Feb 2015 | 9264 Views | By Sumantra B Barooah
The Sonalika Group, the number three player in the Indian tractor market, is taking some steps to strengthen its position as well as expand its allied businesses. Key among them is to hire N K Rattan as director for marketing and sales operations. \
Rattan had resigned from Force ...
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The Sonalika Group, the number three player in the Indian tractor market, is taking some steps to strengthen its position as well as expand its allied businesses. Key among them is to hire N K Rattan as director for marketing and sales operations. \
Rattan had resigned from Force Motors as its executive director in December 2014 and joined the Sonalika Group last month. In his current role, Rattan has the responsibility to drive a new growth phase for the Sonalika Group. The Rs 4,000 crore group has four business verticals – tractors, agricultural implements, auto components and passenger vehicles.
During Rattan's stint at Force Motors, the company's tractor business saw a turnaround. From producing only about a hundred tractors per month when he joined in March 2012 the production level currently stands at 400-500 tractors a month. This is equivalent to the production capacity of a single shift. The company's bus and utility vehicles businesses also continued the strong run during his stint. Prior to the stint at Force Motors, Rattan played a key role in building Honda Motorcycle & Scooter India's business.
The Sonalika Group entered the passenger vehicles business with a utility vehicle called the Rhino (later renamed as the Extreme) but the company hasn't tasted success in the segment. It also had plans to launch a new sedan and an SUV, but they have been put on the backburner.
It seems the focus of the Group is on strengthening its flagship tractor and equipment businesses. The company had earlier spoken about a Rs 500 crore investment plan to more than double its annual tractor production capacity to 200,000 units. Japan's Yanmar and private equity firm Blackstone are key investors in the tractor firm International Tractors.