Sonalika plans for ventures in China, US auto markets
Sonalika Group has announced that it is in discussion with certain firms of United States and China which can provide partnership to the auto maker for setting up its manufacturing plants. Auto maker Sonalika is putting up its efforts in these talks because it intends to introduce its tractors in the auto markets of these two countries. Sonalika is looking for acquisition in Europe. The Sonalika group has got Rs 200 crore for the coming two- three years for its total plans of expansion. The auto maker deals in the farm equipment segment through ITL (International Tractors Ltd). Rajiv Wahi, ITL President (International Business commented that the Chinese auto market is full of opportunities and various challenges. They have got plans to introduce their products in Chinese auto market and they are trying for a tie-up with a local player for the same purpose.
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However, Wahi denied to provide any details and said that the talks are still in process for finalizing the partner. He further added that once the tie-up is done, the group will be looking for setting of a plant in China. Till the beginning of coming year, things will be finalized, added Wahi. As per the statement of Wahi, Chinese market’s size is 2 lakh units per year. He further commented that the group is also planning to set up an assembly line in United States. The prototypes of the tractors have already been checked at US. The talks are going on with a potential partner and by the early next year, the tie up will be done. Besides this, ITL is also looking for various possibilities of acquiring a component maker in Europe so that the assembly line could be set up.
The ITL president also commented that ITL is shortlisting the potential firms for acquisitions in Europe for the purpose of assembling products. The group aims at introducing its tractors by coming year. He denied to tell about the probable size of the deal. At present, ITL runs 2 plants in India and runs 5 units with the local partners in Jordan, Argentina and South Africa. The company also made an announcement about its recent tie-up with Apache – the Argentinian firm, for the distribution of ITL products. These products would be assembled in Latin America.
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