NEW DELHI -(Dow Jones)- India’s International Tractors Ltd. Monday said it will invest INR1 billion to boost overall capacity by 67% to 100,000 tractors a year.
The unlisted Indian farm equipment maker said the investment will be spent to set up a new tractor manufacturing facility in the eastern state of Bihar and to raise capacity at its existing factory in the north.
The new factory will have a capacity of 20,000 tractors a year while capacity at the existing factory at Hoshiarpur in the northern state of Punjab will increase by 20,000 units, it said.
A.S. Mittal, vice chairman, said the proposed new factory is expected to be operational later in 2011.
Mittal also said the company’s tractor sales rose 17% during the April- November period to 25,872 units.
“We expect we will be able sell about 51,000 tractors by the end of this [ fiscal] year,” he said, without giving a comparative figure for the previous fiscal year that ended March 2010.
Japan’s Yanmar group holds a 12% stake in International Tractors, which is part of India’s Sonalika Group.
Sonalika exports tractor and utility vehicle engines. Its unit, International Cars & Motor Ltd., makes the Rhino utility vehicle in India and sells them locally as well as to neighboring countries, including Nepal and Sri Lanka.
SONALIKA IS A BIG COMPANY, AFTER A LONG TIME BIHAR HAS COMPLETED THE DREAM OF SONALIKA TRACTOR PLANT
(edited by Admin)