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It is my privilege to acknowledge profound Gratitude & indebtedness towards my respected & learned teachers for their inspiration, constructive criticism & valuable suggestions. Their precious guidance & unrelenting support kept me on track through my training. I want to thank all the employees of INTERNATIONAL TRACTORS LIMITED(ITL),HOSHIARPUR for their warm support & co-operation in successful running of the training work. I am highly obliged to Ms. Raj Kumar sandhu (DGM) , Mr. Gurpreet singh & Ms. Parul malhotra my project leaders, whose timely advice & constructive criticism helped me in completing the project. Mr. L.D. Mittal, Chairman of International Tractors Limited, assesses the scene in India as compared to the international standards. According to him, India is primarily an agriculturebased 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 Mr. L.D. Mittal Technology should always be suitable to the industry and our 35 years of experience in the field of farming implements has made us understand the needs of Indian farmers more clearly, Implements that can be used and maintained by the Indian farmers are more suitable for the Indian markets. More sophisticated implements that are difficult to use and maintain are not suitable for our country. We have realized the need of Indian farmers and have based our production on this. What established brand names consider their plus point; we put it as our negative feature. All these are big corporate houses. They have many managers, general managers, directors, deputy directors, and other paraphernalia. A decision has to be routed through so many channels that liability for suitability takes a back seat. Ours is a close-knit group. If we take a decision in the evening, it is implemented by the next morning.

One of our dreams is to foray into the area of manufacturing a rural-oriented automobile-it may be a jeep. We have already made a mark in the rural areas and also have the technologies and machines, which are more or less same as that for producing tractors. We hope our dream will come true soon.

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.


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 industries 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.

TRACTOR INDUSTRY IN INDIA 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 WORLD TOTAL/AVG 1444 249.6 28

DESCRIPTION Arable Land Irrigated Area Tractors In Use

UNITS Mn Hectare Mn Hectare Tractors/000 Hectares

INDIA 170 45.8 10.5


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 labour 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 visualised 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.