Quote on Year End Story on behalf of Sonalika International Tractors Ltd.

“While domestic tractor sales volume was not positive this year, due to unfavorable factors such as delayed and deficient monsoons. FY 2015 was a good year for exports as the industry witnessed moderate growth in volumes demand from U.S and near-by markets- especially Sri Lanka, Bangladesh and parts of Africa. In Fiscal year 2014- 15, Sonalika ITL sold 77,452 tractors out of which 11,192 units were exported.

Customers are looking for technological advancements, comfort and styling in tractors coupled with high quality after sale service. Looking at the customers’ requirement and demands for higher HP across the markets, our focus will now be on manufacturing 50 HP and above tractors. We expect the industry to remain largely unaffected over the next 18-24 months’ timeframe, though improving mechanization and increasing exports from India are likely to aid in enhancing the volume share. In short term perspective, we expect tractor industry volumes (domestic + exports) to grow by a modest 2-4%. Recovery is likely to remain contingent on performance of monsoon in terms of both magnitude and spatial distribution. In long term, we want to be the leading player in domestic industry by focusing on customers need in giving most reliable and innovative products across all HP range. Internationally, we plan to further penetrate in US, Australia and Europe as we are working on new age products for these markets ranging from CRDI engines and other new platforms.

The government is keen on promoting agriculture sector growth, investments are being done in agricultural infrastructure such as irrigation facilities, warehousing and cold storage. Other factors like scarcity of farm labour, healthy credit availability, moderate penetration and shortening replacement cycle will continue to encourage demand for tractors.”

Request you to please attribute the same to Mr. Raman Mittal, Executive Director, Sonalika International Tractors Limited