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  • 1. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 1 INTRODUCTION In olden days, people used to walk from one place to another. Later on man invented wheel and has been successfully improving his ideas. After the in the industrial revolution considerable development many machines, unique sophistication, design and technology have come into existence. Four wheeler industries have undergone metamorphic changers in nineties which introduces new improved products in the market and few would have anticipated that the different types of wheeler would be in popularity with both sexes opting to our personal transport. Sonalika, which has a significant role in key sectors of the Indian economy, is consistently high performance. “Sonalika” tractors has been brought into the market and has been ranked among the top private sector companies in the country for few years. A spectacular rise in agricultural production along with government policies was closely associated with the increased use of high yielding seeds, chemicals and fertilizers, irrigation and mechanization. These inputs coupled with production incentives and accessed the credit and market. After independence, India has witnessed a tremendous growth in equipment adoption, development, manufacture utilization, after sales services and custom servicing. Agricultural equipment’s, machines and tools help man in increasing the productivity and profitability by timely farm operations. These come up with an effective utilization of costly inputs like seeds, chemicals, fertilizers and irrigation water through precise metering which in turn reduces the cost of operation, yielding more profitability and economic sustainability. 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 five 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, and Ghana
  • 2. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 2 INDUSTRY PROFILE India is basically an agricultural country. Almost 70% of India’s population is engaged in agriculture for their bread and butter. Since the Indus valley civilization, agriculture is the main source of income. In the early age the use of tractor was very low. Green revolution was the result of tractor and other input used in agriculture. Today India is the largest tractor market estimating 300,000 tractors with annual growth rate of 13.3%. It means 7 tractors per thousand. Today tractor industry is of about 5000 crores. The beginning The decade of 60’s in India saw a green revolution resulting in increase in both production and productivity. With an emphasis on industrialization, the birth of Indian tractor too place in 1959-60 when the imports were restricted. Total indigenous production of tractors by 1965 was just 6000. With the successful introduction and acceptance of high yielding seeds, however, there was a sudden upsurge in demand for tractors after 1967 and demand started multiplying at an annual rate nearly 50%. The second phase Seeing the sharply growing demand, Tractor industry became the most sought in the country and as many as 18 fresh entrants approached the govt. for setting up the manufacturing units. The interest of a large majority however lay in quick profits through sale of imported tractors. Nevertheless 6 new manufacturers did enter the tractor industry; 4 in private sector and 2 in govt. combined output of 11 units had risen to 32000 by 1975
  • 3. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 3 The Maturing Years With the entry of new units in 1970 and due to increasing govt. pressure, indigenization picked up substantially after 1970 & by 1978 all most all the tractors manufacturer were nearly indigenous. A fillip to indigenization was also given by overall industrialization of the country, when a large number of ancillary units were established and were in a position to supply a wide range of components to the tractor industry. The Present Scenario The industry faced recession during 1992-93. Sales fell to 1.44 lac tractors from 1.50 lac tractors during the year 1993-94. However there was a silver lining to the cloud. During 1994- 95, 1995-96, 1996-97 sales stood 1.64, 1.91, 2.20 lac tractors respectively. In fact exports have now become a thrust area. Different producers are now in line producing different Horse Power tractors according to their available markets around the world. 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, labour 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
  • 4. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 4 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 crore. 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:
  • 5. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 5 INDIAN TRACTOR MARKET DESCRIPTION UNITS WORLD TOTAL/AVG INDIA INDIA RANK 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 are 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 labour shortage during harvesting increased the use of tractor. * 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.
  • 6. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 6 * 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 Srilanka ,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.
  • 7. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 7 FOREIGN COLLABORATION Tractor industry along with others benefited from this policy which allowed free inflow of foreign technology .The manufacture of tractors started in India mainly with the help of foreign collaboration secured from internationally reputed companies from the USA, UK, USSR, WEST GERMANY, POLAND, and CZECH SLOVAKIA. Most of the models which were taken up for manufacture in India were developed overseas. Soon after the decision for the manufacture of tractors was made during second plan, government approved number of foreign collaboration agreements. The establishment and present status of tractor industry owes a great deal to the support received by the Indian entrepreneurs from foreign collaboration during the initial phase of manufacture. DSIR has introduced a scheme, "National Register of Foreign Collaborations", which envisages review and analysis of imported technologies in the country and suggested measures for appropriate choices acquisition and implementation of foreign know-how. Major objective of scheme is: * To undertake financial, economic and legal analysis of set of data on foreign collaboration. * Carry out a technological analysis of the imported technology and provide a stage of art technology in the country and status of implementation of collaboration. * Co-ordinate with Ministry of Industry, Commerce and Finance by providing technology data input. * Selective support to strength measures in Research and Development for technology absorption.
  • 8. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 8 List of tractor manufacturers, their collaborators and the year of commencement of production: MANUFACTURERS AND COLLABORATORS MANUFACTURER COLLABORATOR YEAR Eicher Tractors Ltd Gebr, Eicher Tractor. West Germany 1961 TAFE Messey Ferguson. UK 1961 Mahindra And Mahindra International Harvestor. UK 1965 Escorts Tractor Ltd Ford .U.K. 1971 Hindustan Machine Tools Motokov -Praha. Czechoslovakia 1971 Punjab Tractor Limited CMERI.INDIA 1974 International Tractors Own know-how 1998 New Holland Tractor New Holland Tractors .Italy 1999 MAJOR PLAYERS IN INDIAN TRACTOR MARKET The tractor industry in India has developed over the years to become one of the largest tractor markets in the world. From just about 50,000 units in early eighties the size of tractor market in the country has grown up to over 200,000 units. Today industry comprises of 14 players, including 3MNCs. The opportunities still are huge considering the low farm mechanization levels in the country, when compared to other developed economies across the world. After a downturn during last 3-4 years, the industry is back on a growth path, which we believe would sustain incoming years as well. Key concern for the industry is its dependence on agricultural
  • 9. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 9 Income in hands of farmers and the state of monsoon. Tractor Segments: 30 - 40 HP dominates with over 50 percent share Tractor industry is classified into three broad segments, based on the power delivered by the engine Horse Power (HP) SEGMENTS HORSE POWER MARKET SHARE (%) SUITABILITY Small Tractors 21-30 23-25 Tractors suited for soft soil conditions and preferred in well irrigated northern states. Medium Tractors 31-40 53-56 Used in southern and western region due to hard soil conditions. Large Tractors 41-50 17 Rich farmers with larger land holdings, especially in Punjab and Haryana. Large Tractors >50 2-4 Used in Turnkey project sites such as building sites for canals, dams and civil Construction projects. Today there are as many as 14 players operating into tractor manufacturing activity in the country. However, about 90 per cent of market is shared among the top 5-6 players only. Mahindra and Mahindra continues to dominate the industry with close to 30 per cent share,
  • 10. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 10 while other players like TAFE, Escorts, PTL, ITL and Eicher enjoys market share of 15 per cent , 14 per cent , 11 per cent , 11 per cent and 10 percent respectively. INTERNATIONAL CARS AND MOTOR LIMITED International Cars & Motors Limited (ICML) is a Group Company of the Rs 1200 Crores SONALIKA Group. The Company is promoted by Mr. L.D.Mittal (Chairman), Mr. A.S.Mittal (Vice Chairman) & Mr. Deepak Mittal, Managing Director, who are having vast experience in manufacturing of tractors, Farm machines & Automobiles. ICML is a project of its kind and is the ‘Pride of Himachal Pradesh’. The Company is having 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. The Company has entered into Technical Collaboration Agreement with MG Rover of UK, with the technical know – how from MG Rover, UK. The Company has manufactured MUV with the name of RHINO RX & the same MUV boasts of Rover engines. The company is in- process of developing its own Common Rail Direct injection (CRDi) engines. The company has the installed capacity to manufacture 2000 MUVs in a month i.e., 24000 MUVs in a year. In the first full year of production in 2006-2007, ICML is aiming to churn out about 5000 MUVs & expects to achieve a turnover of 250 Crores. The Company, besides catering to the domestic market, also has an eye on exports & exports to Malaysia, Nepal, Bangladesh & Indonesia are also in an advanced stage. The Company is eligible for the Central & State Govt. Tax sops, exemption from the excise duty & income tax for 10 years
  • 11. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 11 Sonalika Group intends to inject Rs. 1000 Crores in Himachal Pradesh over the next 2 -3 years in the upcoming ICML plant & ICML has an ambitious plan to play a major role in the Indian Automobile Industry. International cars & motors ltd, car plant is located in foothills of Shivalik Range and surrounded by natural greenery of Himalayas at AMB (HP) a tax-free zone. The total area of plant is 93,000 Sq. M. out of which 42,000 Sq. M. is covered area. Plant capacity to produce 24000 cars in a year. COMPANY PROFILE HISTORY OF SONALIKA GROUP FOUNDER – Mr. L.D.Mittal Sonalika Group - Sonalika group is one of the top automobile and agriculture machinery manufacturers in India. Apart from tractors its product line includes multi utility vehicles, three wheelers, engines and various farm equipments and implements. Established in 1969, 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 the one of the top 3 tractor manufacturing companies in India, other products include of, Multi utility vehicles, engines and various farm equipments. Today the group stands tall with an approximate turnover of 5000 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. The company works on the maxims of low production cost and clean and safe environment. Such efforts have fetched the company the accreditation like ISO 9001 and ISO 14001. 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, we have been able to create
  • 12. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 12 a unique platform for learning through success stories of industry leaders. The success saga of Sonalika Group a business conglomerate having prime interest in agricultural & auto machinery goes back to nearly 5 decades. The corporate philosophy embedded in trust, quality and commitment has helped the group to carve out a niche for itself in the highly competitive world of Machinery. Sonalika is the fastest growing tractor company registering growth over growth since its inception has crossed 1.80 lac merely in 10 years & has attained one of the position in top three in India Sonalika group’s products exist in various international markets. Company’s product exported to Algeria, Angola, Armenia, Australia, Bangladesh, Cameroon, Ethiopia, Ghana, Ivory Coast, Malawi, Malaysia, Mauritius, Mozambique, Nepal, Oman, Republic of Benin, Senegal, South Africa, Srilanka, Sudan, Canada, Zambia, Syria, Togo, Tunisia, Ukraine, and Zimbabwe. MISSION & VISION VISION STATEMENT The dream Project of Sonalika group is to cater the agricultural and auto industry with quality abrasive products through untiring dedication and leadership. MISSION STATEMENT we pay personal attention to customers so that, we can build products they need, and not merely sell the products we build. CORE VALUES To accomplish our 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.
  • 13. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 13 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. 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. Sonalika Agro Industries Corporation This company mainly deals with agricultural equipments and implements. That are helpful to the farmers in agriculture the product line of the sonalika agro industries corporation is as follow:-  Combine Harvesters  Threshers  Potato Planters  Maize Sheller-cum  Seed-cum-Fertilizer Drills  Straw Reapers  Ploughs  Harrows
  • 14. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 14 International Autotrac Finance Limited This company basically deals with services which are provided to farmers, salaried for finance the tractors and other agricultural equipment’s and implements. Provide financial assistance to them. International Cars and Motor Limited At present this company produces one car model Rhino Rx a MUV by this group and also working on the new car model INSPIRE and this will launch within this year. Market No wonder Sonalika products have created a niche for themselves not only in India but also in foreign markets including France, Africa ,Bangladesh , Srilanka, Senegal, Mali, South Africa, Canada, Syria and many of the South Asian countries. Some of the international clients are as follow: MG Rover, Power Train, Renault, and Yanmar. In domestic market sonalika products are popular in all across the India. In Punjab, there are 45dealers of sonalika tractors. INTERNATIONAL TRACTORS LIMITED As per the training concern my training is in the sonalika tractors that is International Tractors limited. This company mainly deals with tractor manufactures and also some other like Generators etc.ITL was established in 1995-96 with a covered area of 25 acres. It is situated at distance of 7 km from Hoshiarpur on Hoshiarpur-Jalandhar road. It is specialist in manufacturing of producing three cylinder diesel engines of tractors. The first tractor manufactured by the company on 14th Oct, 1996. In Oct, 96 the capacity of the company was one tractor in two days. It has sold 400 tractors in the first year of launching tractor & now the production rate is 1200-1250 tractors per month but installed capacity of company is 100 tractors per day. It has developed its own 60HP diesel engine. ITL’s Hosiarpur situated plant is spread across 50,000sq.meter, which is having fully computerized and high level modern machines. Presently, the production capacity of plant is 100 tractors per day. Near about 3000 people engaged in the plant including workers, technicians, and engineers on regular basis and around 3000 people work on contract basis.
  • 15. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 15 Competitors of Sonalika tractors are as Escorts, Eicher, Hmt, Mahindra and Mahindra, Swaraj/PTL, Tafe/Massey, New Holland ford, ACHIEVEMENTS -Company has produced smoke free diesel engine -Company has increased its production of diesel engines up to 60 engines per day -International Tractor Limited has a network of network of more than 1000 dealers -Computerized tractor plant -First Indian tractor engine750III conforming to Euro II norms -Pride of country awarded to Sh L.D MIttal, Chairman. -Gold medal awarded to Sh. A.S Mittal, Vice Chairman -Udyog Bhushan awarded to Sh. Deepak Mittal, MD DETAILS OF TOP EXECUTIVES 1. Chairman- Mr. L.D. Mittal 2. Vice Chairman- Mr. A.S. Mittal 3. Managing Director- Mr. Deepak Mittal 4. Finance Head- Mr.Rajnesh Jain 5. Production Head- Mr. Ashok Kapoor 6. Marketing Head- Mr.L.R.Yadav (CEO) 7. R&D Head- Mr. Ashwani Malik
  • 16. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 16 Turnover The total turnover of the group stands for 3200crore 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. SONALIKA GROUP -MILESTONE 1) 1969, Modest beginning into farm equipment and machine manufacture and earning name and fame over all these year. 2) 1995 Diversification into manufacture of tractor over whelming response from the market. 3) 1996 Roll out of first tractor from ITL. 4) 2000 Enter into joint venture with Renault Agriculture France for tractor manufacture in India. 5) 2000 Started in house manuf. Of engine for tractor application. 6) 2002 Started export of tractor to Africa, Asian sub continental. 7) 2004 Started Roll out of 100000 Tractors 8) 2004 Started establishment of ICML. 9) 2005 Become the fourth largest tractor manufacturer in India. 10) 2005, Roll out of first vehicle from ICML facility. 11) 2005 Joint venture with Yanmar Agriculture of Japan. 12) 2006 Successfully developed 4 wheels drive front Axles and transmission of tractors for Yanmar. 13) 2006 Rollout of 100000th tractor engine. 14) 2006 Become 3rd largest manufacture of tractor in India. 15) 2006 Market launch of Rhino (MUV) and establish dealer’s network.
  • 17. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 17 SONALIKA GROUP UNITS Sonalika group divided into four companies’ .Sonalika group units is as follow: INTERNATIONAL TRACTORS LIMITED 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 five 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 SONALIKA GROUP INTERNATIONAL TRACTOR LIMITED INTERNATIONAL CARS AND MOTOR LIMITED INTERNATIONAL AUTOTRAC FINANCE LIMITED SONALIKA AGRO INDUSTRIES
  • 18. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 18 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. They 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). Address- International Tractors Limited Jalandhar Road, Hoshiarpur (Pb.) Pin-146022 (India) INTERNATIONAL CARS AND MOTOR LIMITED International Cars & Motors Limited (ICML) is a Group Company of the Rs 1200 Crores SONALIKA Group. The Company is promoted by Mr. L.D.Mittal (Chairman), Mr. A.S.Mittal (Vice Chairman) & Mr. Deepak Mittal, Managing Director, who are having vast experience in manufacturing of tractors, Farm machines & Automobiles. ICML is a project of its kind and is the ‘Pride of Himachal Pradesh’. The Company is having 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. The Company has entered into Technical Collaboration Agreement with MG Rover of UK, with the technical know – how from MG Rover, UK. The Company has manufactured MUV
  • 19. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 19 with the name of RHINO RX & the same MUV boasts of Rover engines. The company is in- process of developing its own Common Rail Direct injection (CRDi) engines. The company has the installed capacity to manufacture 2000 MUVs in a month i.e., 24000 MUVs in a year. In the first full year of production in 2006-2007, ICML is aiming to churn out about 5000 MUVs & expects to achieve a turnover of 250 Crores. The Company, besides catering to the domestic market, also has an eye on exports & exports to Malaysia, Nepal, Bangladesh & Indonesia are also in an advanced stage. It will also offload the product in African continent soon. The Company is eligible for the Central & State Govt. Tax sops, exemption from the excise duty & income tax for 10 years, which shall add to its viability & future expansion. Sonalika Group intends to inject Rs. 1000 Crores in Himachal Pradesh over the next 2 -3 years in the upcoming ICML plant & ICML has an ambitious plan to play a major role in the Indian Automobile Industry. International cars & motors ltd, car plant is located in foothills of Shivalik Range and surrounded by natural greenery of Himalayas at AMB (HP) a tax-free zone. The total area of plant is 93,000 Sq. M. out of which 42,000 Sq. M. is covered area. Plant capacity to produce 24000 cars in a year. Address:-Amb Dist., Himachal Pradesh. {Tax Free Zone} INTERNATIONAL AUTOTRAC FINANCE LIMITED 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
  • 20. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 20 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. DEALER NET WORTH: The company has established a network of dealer equipped to attend all customer needs, training demonstrations spare parts. After, sales service…….. Anything related to tractor care. Dealer show rooms and dealer workshops are strategically located to provide prompt after sales and service support. A carefully selected dealer network ensures the high standards of excellence and reliability of Sonalika in India. The company aims to provide the quality of service that Sonalika and customers have always experienced efficient, quick of reliable. OFFICE NETWORK: The company has a network of area offices and depots in the country to facilitate sales and service. Enquiries are looked into and attended to immediately by company officials. ABOUT PADMA INTERNATIONAL TRACTORS Padma international tractors is a sole trading concern dealing in automobile business since 2010 in manvi city under the name of “Padma international Tractors”. Mr. Kona Basker had taken the dealership of sonalika tractors in the name of “Padma international tractors.”
  • 21. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 21 Padma Agency is the authorized dealer for sonalika tractors manufactured by sonalika international tractors Company Ltd. This firm came into existence with a view to serve the public with efficient sales and service station for Sonalika tractors. The showroom of sonalika tractors is situated on RG road, manvi. The service station is situated opposite the showroom. The service areas have been upgraded as per company specifications. Infrastructural Facilities: 1. Land and Building: The firm has a showroom and garage just opposite of the firm and total area occupied by the firm in between 2500 sq.ft. to 2750 sq.ft. 2. Power: The electric power requirement of the firm is of 200 to 250 units per month. The electric power consumed by the firm’s showroom is about 95 units and service station like water washing of vehicles etc. take the power consumption of 95 to 105 units. 3. Machinery: The firm is well equipped with washing machine and special tools needed for servicing the vehicles. 4. ManPower: The firm has sufficient staff of machines. There are 6 mechanics and 4 helpers and 2 foreman OTHER STAFF OF THE FIRM Dealer & owner Kona basker Sales Manager Prakash Computer Accountant Krishna Murthy Work manager Basker Fore Man Venkatesh Asst. Fore Man Nagaraj, Gopi, Abdhul
  • 22. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 22 Marketing strategies adopted by sonalika and its dealers: According to Philip Kotler, a marketing strategy is a consistent appropriate and feasible set of principles through which a particular company hopes of achieve its long term customer and profit objectives in particular competitive environment. A company’s marketing strategy have to take several factors into account including: 1) The company’s competitive size and position in the market. 2) The Company’s resources, objectives and policies. 3) The competitors marketing strategies. 4) The target market’s buying behavior. 5) The stage of the product life cycle. 6) The character of the economy. We can gain further insight into the competitive area by classifying companies by the role. They play in the market with that of market leader. Marketleaderstrategies: The sonalika Company Ltd. has the largest sale of tractors. It usually leads the other company in price changes, new product introduction, distribution coverage and promotional intensity. The various marketing strategies adopted by sonalika company and its dealers are explained as below: 1) Demonstration and free test drive : When the company introduces a new product in the market, it demonstrates its vehicle to the customers and provides from test drive, with a view and educate them at dealer showroom. 2) Free service programed : Free service coupons are provided with the purchase of new vehicle and if any parts are damaged with in the guarantee period, they are reported at free of cost by the dealer.
  • 23. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 23 3) Free checkup campaign : Once or twice in a year the dealer and service engineers of the company arrange free checkup campaign and the customers are educated about the efficient handling of the vehicle. 4) Advertisement : With a view to create demand for the product in the mind of the customers and to improve the competitive strength, the company advertises its vehicles through various media such as T.V., Newspaper, Magazines, and Sign board etc. 5) Field staff : Dealers will send their field staff to villages, rural and urban areas to educate the customers about the uses of vehicle and also takes orders.
  • 24. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 24 SWOT ANALYSIS STRENGTH:-  Human Resource  Research & Development  Physical Resources: - SAP, own IT dept.  Availability of finance  Investors Relationship WEAKNESS:-  Import of tractor implements  Lack of advertisement regarding their products OPPORTUNITIES:-  Unexplored Markets for Exports :- Mexican & Brazilian markets THREATS:- o Competitors o High Maintenance cost o Mainly used for agro-purpose
  • 25. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 25 RESEARCH METHODOLOGY Research can be defined as a scientific and systematic search for pertinent information on a specific topic. According to Clifford Woody research comprises defining and redefining problem, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research methodology is a way to systematically solve the research problem. It may be understood as the science of studying how research is done scientifically. Research design A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. One may split the overall research design into following parts: a) The sampling design which deals with the method of selecting items to be observed for the given study. b) The observational design which relates to the condition under which the observations are to be made. c) The statistical design which concerns with the question of how many items are to be observes and how the information and the data gathered are to be analyzed. d) The operational design which deals with the techniques by which the procedure specified in the sampling, statistical and observational design can be carried out.
  • 26. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 26 Data sources: The task of data collection begins after a research problem has been defined and a research design has been chalked out. While deciding about the methods of data collection, the researcher should keep in mind two types of data:- 1. Primary data  The primary data are those data which are collected afresh and for the first time, and thus happen to be original in character. Data was collected through questionnaire. 2. Secondary data.  The secondary data on the other hand, are those which have already been collected by someone else and which have already been passing through the statistical process. The researcher would have to decide which sort of data he would be using for his study and accordingly he will have to select one or the other method of data collection. The methods of collecting primary and secondary data differ since primary data are to be originally collected, while in case of secondary data the nature of data collection work is merely that of collection and compilation of information collected through various newspapers, magazines and internet etc. In this research, I follow both the method of data collection.  This research involves both primary and secondary sources of data collection.  The information was collected and assembled from various websites, Research approach The approaches mainly opted by the researcher to get the result include behavioral, survey, focus group, observational, experimental approaches etc. For conducting this research the main approach used was survey approach i.e. interviewing the consumers.
  • 27. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 27 Research instrument The primary data was obtained during the course of doing research in a systematic manner with the help of questionnaires and interviewing peoples. Questionnaire method: this method of data collection is quite popular, particularly in case of big enquires. In this method a questionnaire is sent to the persons with a request to answer and return the questionnaire. A questionnaire consists of a number of questions in a definite order on a form or a set of forms. The questionnaire used by me for the purpose of data collection was of structured type. It was designed keeping in mind the research problem which included close ended questions. The questionnaire was given to the respondents who were expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself. Sampling unit Sampling unit refers to smallest possible individual eligible respondent. In my study the sampling unit is single individual user of tractor. Sampling size This refers to the total number of respondents selected from the universe to constitute a sample. The size of the sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfills the requirement of efficiency, representativeness, reliability and flexibility. The sample size for my research is hundred respondents. Sampling frame Frame is the list of respondents i.e. list of all the users of different tractors
  • 28. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 28 Data Analysis and Interpretation For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having multiple/alternative choices. In case of ranking questions the total score has been added and final ranking is given. In case of checklist questions the average of total no 50. of responses was calculated. In case of explanatory questions, the general suggestions were summarized. LIMITATIONS TO THE RESEARCH  As the data will be collected through questionnaire, there are chances of biased information provided by the respondents.  The survey is limited only to Manvi Taluk, Raichur district  As the sample size is small compared to the total population the outcome cannot be generalized.  Respondents are basically villagers they usually not take more emphasis on these questions.
  • 29. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 29 ANALYSIS Tractor usage-purpose Frequency Percent Valid Percent Cumulative Percent Agriculture 41 83.3 83.3 83.3 Industrial purpose 2 3.3 3.3 86.7 Loading and unloading 7 13.3 13.3 100 Total 50 100 100 Table number 1 Tractor usage-purpose The field survey clearly indicates that the profession of the customer plays an important role on the purchase of tractors. The above table shows that out of 50 respondents, 83% respondents are from as agriculture 14% respondents are from loading and unloading and 3% respondents are used industrial purpose. The agriculturists have purchased the tractors and therefore agriculture is the main profession 83% 3% 14% agriculture industrial purpose loading and unloading
  • 30. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 30 FACTORS INFLUENCING TO PURCHASE THE TRACTOR Frequency Percent Valid Percent Cumulative Percent Friends and relatives 12 23.3 23.3 23.3 Company representatives 16 33.3 33.3 56.7 Dealers 22 43.3 43.3 100 Total 50 100 100 Table number 2 FACTORS INFLUENCING TO PURCHASETHETRACTOR It was found that among 50 respondents 43% respondents of them were in group of company dealers, 23% respondents of them were in group of friends and relatives, remaining were in the groups of from company representatives. Most of the people are buying tractors from the dealers. 23% 34% 43% friends and relatives company representatives dealers
  • 31. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 31 SATISFACTION LEVELS Frequency Percent Valid Percent Cumulative Percent Yes 48 96.7 96.7 96.7 No 2 3.3 3.3 100 Total 50 100 100 Table number 3 As per the study most of the respondents are satisfied with the sonalika tractors VEHICLE PERFORMANCE Frequency Percent Valid Percent Cumulative Percent Features 7 10 10 10 Low maintenance 22 43.3 43.3 53.3 After sales services 8 16.7 16.7 70 Fuel consumption 11 26.7 26.7 96.7 Others 2 3.3 3.3 100 Total 50 100 100 Table number 4
  • 32. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 32 The chart showing vehicle performance As per the study it reflects that most of the respondents goes for the sonalika tractors because the maintenance cost of the sonalika tractor is low and the fuel consumption is good MAINTENANCE COST Frequency Percent Valid Percent Cumulative Percent Extremely satisfied 11 23.3 23.3 23.3 Satisfied 21 40 40 63.3 Neutral 11 26.7 26.7 90 Dissatisfied 7 10 10 100 Total 50 100 100 Table number 5 10% 43% 17% 27% 3% features low maintenance after sales services fuel consumption 5
  • 33. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 33 The chart showing maintenance cost As per the study 40% of the respondents are satisfied with the maintenance cost and the 10% of the respondents are dissatisfied with the maintenance cost of the sonalika tractor AWARENESS ABOUT POWER STEERING Frequency Percent Valid Percent Cumulative Percent Yes 50 100 100 100 Table number 6 All the respondents of the survey are known about the power steering available for the sonalika tractor 23% 40% 27% 10% extremely satisfied satisfied neutral dissatisfied
  • 34. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 34 FINANCING OPTIONS Frequency Percent Valid Percent Cumulative Percent Yes 28 56.7 56.7 56.7 No 22 43.3 43.3 100 Total 50 100 100 Table number 7 As per the study 57% of the respondents needs the financial help for purchasing of tractor and 43% of the respondents do not need the financial help PERFORMANCE OF SAFETY FEATURES Frequency Percent Valid Percent Cumulative Percent Excellent 12 23.3 23.3 23.3 Very good 9 16.7 16.7 40 Average 25 53.3 53.3 93.3 Bad 4 6.7 6.7 100 Total 50 100 100 Table number 8
  • 35. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 35 The chart showing the performance of safety features As per the study the performance of the safety features 53% of the respondents says average and 17% of the respondents says very good and 23% of the respondents says excellent. And 7% of the respondents says bad. QUALITY OF SERVICE PROVIDED BY DEALERS Frequency Percent Valid Percent Cumulative Percent Extremely satisfied 9 20 20 20 Satisfied 16 33.3 33.3 53.3 Neutral 25 46.7 46.7 100 Total 50 100 100 Table number 9 23% 17% 53% 7% excellent verygood average bad
  • 36. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 36 The chart showing the Quality of service provided by dealers As per the study most of the respondents are neutral about the free service and 33% of people are satisfied with the free service of sonalika tractors VALUE FOR SERVICE Frequency Percent Valid Percent Cumulative Percent Very good 11 20 20 20 Good 18 36.7 36.7 56.7 Economical 19 40 40 96.7 Low 2 3.3 3.3 100 Total 50 100 100 Table number10 20% 33% 47% extremely satsfied satisfied neutral
  • 37. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 37 The chart showing the value for service As per the study the customer perception about the charges of the service 40%of the respondents says it’s economical and 37%of the respondents says good. VEHICLE DURABILITY Frequency Percent Valid Percent Cumulative Percent Very good 8 10 10 10 Good 26 56.7 56.7 66.7 Fair 16 33.3 33.3 100 Total 50 100 100 Table number 11 20% 37% 40% 3% very good good economical low
  • 38. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 38 The chart showing vehicle durability As per the study the most of the customers satisfied regarding the condition of vehicle because the maintenance cost is also low AVAILABILITY OF GENUINE SPARES Frequency Percent Valid Percent Cumulative Percent Strongly agree 21 40 40 40 Agree 22 46.7 46.7 86.7 Disagree 7 13.3 13.3 100 Total 50 100 100 Table number 12 10% 57% 33% very good good fair
  • 39. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 39 The chart showing the availability of genuine spares As per the study most of the respondents are agree that the authorized service station has sufficient and genuine spares AVAILABILITY OF ALL SPARES ON TIME Frequency Percent Valid Percent Cumulative Percent Yes 25 50 50 50 No 25 50 50 100 Total 50 100 100 Table number 13 As per the study it says half of the people agrees and half of the people disagree regarding the availability of all spares on time with dealers. 40% 47% 13% strongly agree agree disagree
  • 40. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 40 DEALER RELATIONSHIP Frequency Percent Valid Percent Cumulative Percent Yes 13 26.7 26.7 26.7 No 37 73.3 73.3 100 Total 50 100 100 Table number 14 As per the study most of the respondents do not have any problem with authorized service station PRODUCT RECOMMENDATION Frequency Percent Valid Percent Cumulative Percent Yes 40 83.3 83.3 83.3 No 10 16.7 16.7 100 Total 50 100 100 Table number 15 As per the study most of the respondents are happy with the performance of the sonalika tractor so they are recommended to buy the sonalika tractor to others.
  • 41. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 41 DEALER SERVICE RANKING Frequency Percent Valid Percent Cumulative Percent Mechanical service 4 6.7 6.7 6.7 Availability of spares 22 43.3 43.3 50 Warranty 7 13.3 13.3 63.3 Maintenance 9 20 20 83.3 Re-sale value 8 16.7 16.7 100 Total 50 100 100 Table number 16 The chart showing the dealer service ranking As per the study according to the ranking of the sonalika tractor most of the respondents are rated about the availability of the spares and rating is very low for the resale value of the sonalika tractors. 7% 43% 13% 20% 17% mechnical service availability of spares warrenty maintenance re-sale value
  • 42. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 42 SUGGESTIONS: 1) Many consumers felt that the price of Sonalika tractors in very high. Therefore they suggested for a reduction in the price of Sonalika tractors. 2) Sonalika Company should adopt latest technologies for further improvement of the fuel efficiency of its tractors. 3) The users have complaint regarding after sale service of the dealers has highly unsatisfactory, it is suggested that the company should advice the dealers to render better after sale service to its customers. 4) It has been suggested that to create awareness & popularize its tractors Sonalika Company should go for frequent advertisements in magazines newspapers, hoardings and T.V. advertisements. 5) The company should assure ready availability of spare parts through the dealers. 6) The price of spare parts is also expensive as compare to competitor’s spare parts. Hence it is suggested that the company provides necessary spares at reasonable prices.
  • 43. Padma International Tractors, Manvi BAPUJI ACADEMYOF MANAGEMENTAND REASERCH 43 CONCLUSION  Sonalika has various advantages over its competitors such as low fuel consumption, high speed, low maintenance cost, & easy availability  As tractor is meant for pulling load, sonalika has all these qualities to pull maximum load due to high backup torque.  People prefer Farmtrac and Ford tractors as per the study and people like engine performance as the main consideration of purchasing tractors.  They basically affected by the displays in providing information regarding new products so company should create some awareness regarding this and make some hoarding on roads to attract tractor users with new features mention on it.  Respondents are basically from rural areas so they are not affected by the newspapers, because in their daily life they never spent time on newspaper and their purchasing decision followed by dealers, social network and hoardings.

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