Even as it prepares to ramp up production of its upgraded multi-utility vehicle, Rhino Rx, the Delhi-based Sonalika group is scouting for land in south India to set up its second tractor manufacturing plant.

The company has earmarked around Rs 450 crore for the expansion of its existing tractor facility in Hoshiarpur, Punjab, as well as for the setting up of a new plant. As for the passenger vehicle project, the group will invest around Rs 600 crore in the next three years.

ACQUISITION MODE

The Rs 3,000 crore Sonalika’s flagship company International Tractors (ITL) manufactures tractors under the brand name Sonalika while another group company, International Cars and Motors (ICML), based in Amb (Himachal Pradesh) makes the Rhino. Sonalika group chairman LD Mittal said at the launch of the Rhino Rx in Delhi that buyout talks were on with a tractor component maker in East Europe. “The acquisition will help us get components for our tractors,” he said.

With the launch of the Rhino Rx, the company has now stopped production of the earlier Rhino model which was powered by a petrol Avtec engine. The Rhino Rx is actually an improved version of the earlier Rhino with a brand new diesel powertrain. The engines and transmissions for the Rhino Rx will be made at the ITL facility in Hoshiarpur which would then be sent to the ICML plant in Amb. This facility has a production capacity of 2,000 units per month.

Managing Director, ICML, Deepak Mittal said that as Rhino RX’s plant was located in a tax-exemption zone, the company had significant cost savings which would be passed on to customers. The vehicle will come in three variants – S1, S2 and Dl (with a price range from Rs 5.95 lakh to Rs 6.95 lakh) and will be initially available in Punjab, Haryana, Himachal Pradesh and Delhi before going nationwide by the end of this fiscal. The company has targeted sales of 2000 units a month in the first year of operation. It is also looking at exports in Nepal, Malaysia and Indonesia.

P THARYAN