COMPANY PROFILE

COMPANY PROFILE
Incorporated in 1969 to accomplish newer heights of success, Sonalika Group has come a long way. Today the group is among the top three tractor manufacturers of India and provides a complete product line including tractors, multi-utility vehicles, engines, farm machinery attachments, diesel gensets, auto components and pick & carry cranes.

The group understands the requirements of its customers fairly well and tries coming up with exceptional tailor-made products suiting their needs. The group's state-of-the-art production plants spread across many acres and are strategically established in a pollution free zone in Punjab and Himachal Pradesh.

Today, taking the voyage of success further, Sonalika Group sits on a strong platform with a turnover of approx. 600 million USD. The annual average growth of 30% is the testimony of our achievements and makes us one of the fastest growing corporate in India. Moreover, Sonalika Group is also one of the few debt free corporate of the world. Its strength of 3000 people includes some of the renowned names in industry.

Sonalika Group has also joined hands with some of the leading international names like Yanmar of Japan, JM Finance Trustee & Magma Sharachi Finance.

Today Sonalika has become synonymous to prosperity, success and growth. With international technologies, state-of-the-art production units, experienced teams and tailormade solutions Sonalika has responded really well to its customers' needs in India and

abroad. We believe the coming years will bring the same results for us, our associates and our customers provided we go along with the same fervour and optimism. And we are ready for it. Ready to take on the challenges that destiny has in store for us and to climb new horizons of success that are still untouched and unexplored.

MISSION, VISION, AND CORE VALUES

Value

Vision

To become the World's leading tractor manufacturing company and a major player in automotive products and services.

To provide value for money to the customers by producing High Quality Innovative Products at competitive price.

Mission To translate vision into reality. Core Values

Fast adaptability to change. Innovative in fields and business. Offer service with a smile to customers. Provide enjoyable working environments to employees. Provides opportunity for research and development.

LOGO RATIONALE
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 centre symbolizes growth, harmony, freshness, and fertility. Blue 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.

MEMBERS OF THE COMPANY

Mr. L.D. Mittal is the Chairman of The Sonalika Group Companies. He is a thorough professional with an illustrious experience of more than 40 years in a Public Sector Enterprise of repute in India. Apart from this, he is the Chairman / Director of twenty two other companies in India. Mr. L.D. Mittal Chairman He has been the Chairman of Tractor Manufacturer's Association of India. He has been awarded many accolades including Pride of the Nation award, Udhyaog Ratna award, Ernst & Young Entrepreneur of the Year award etc. He has been a member of National Council of Confederation of Indian Industry. He was appointed as the Honorary Consul General of Republic of Macedonia in India as well.

Mr. A.S. Mittal is the Vice Chairman of The Sonalika Group Companies. He is a self made industrialist with a proven record of extra-ordinary innovation and business acumen. Apart from this, he is Vice Chairman / Managing Director & Director of twenty two companies in India. Mr. A.S. Mittal Vice Chairman

Mr. Deepak Mittal is the Managing Director of International tractors Ltd. He is an ardent economist and is known for a strong customer orientation in all businesses. He is MD of more than 20 Companies. Mr. Mittal is active in various CSR activities including a project on environment Mr. Deepak Mittal Managing Director protection etc.

COMPANY HIGHLIGHTS

2010

Sonalika Tractors are now EURO III A Norms Compliant Started Export of Tractors to Argentina & Serbia Executed the export order to Cameroon worth 40 Million US$.

2009

Grand Launch of technical advanced worldtrac series of tractors. The series comprises of tractors with advanced features.

Developed in-house unique DIESEL SAVER UNIT FOR SONALIKA Tractors. Became only Company in India To Produce 90 Hp Tractors.

2008

Launch of RX Series of Tractors. Aesthetically appealing designs and shape accepted across the world.

Export of Tractors Started to USA.

2007

Joint Venture between International Tractors Ltd. and Magma Shrachi Finance.

2006

Successfully Developed Four Wheel Drive front axles and Transmission of tractor for Yanmar.

2005

Achieved turnover of USD 235 Million. Joint venture with Yanmar of Japan for manufacturing of Tractors in India.

2001

Started in house manufacturing of engine for tractor application

2000

Entered into Joint venture with Renault-France and Class-Germany, which helped the group to upgrade its technology and systems.

GROUP COMPANIES
International Tractors Ltd.
Incorporated in 1995 International Tractors Limited has become a renowned name in tractor manufacturing industry. ITL, one of the top three tractor selling companies in India, has come of age to establish itself as a distinct and excellent tractor manufacturer. ITL is the proud manufacturer of the bestselling tractors between 20 HP to 90 HP. The tractors manufactured by ITL bear testimony to greater performance, unmatched quality and higher reliability in the market because of their better pulling power, minimal fuel consumption and low emission. With their exceptional qualities these tractors cater to the demands of agriculture sector not just in India but also in various other countries.

ITL's top-end manufacturing processes, international quality control systems and advanced research and development facilities are duly ISO-9001:2008 certified by the joint accreditation system of Australia and New Zealand. Moreover, ITL is the first tractor manufacturing company in the country to be accredited with ISO14001 certification, TS16949.

ITL tractors are fitted with engines which are compliant to smoke & mass emission for India certified by ARAI, Pune (Euro II) & also has approval from Environmental protection Agency, Washington DC for EPA compliance and from TUV for Euro III compliance. All tractor models of ITL are tested & approved by Central Farm Machinery and Tractors Training & Testing Institute, Bundi (MP) India, (the Government of India Institute authorized for issuing test reports). These Certifications have enabled ITL to enter in to various countries across the Globe. Moreover, the tractors manufactured by us are approved and tested dimensionally and structurally on the ground of specification, according to EEC and other international standards and homologations. So they offer our customers the best in class hydrostatic transmission, power steering, differential lock and advanced safety devices.

International Cars & Motors Ltd.

International Cars & Motors Limited (ICML) was established in year 2004 with the installed capacity to

manufacture 2000 vehicles in a month. The company had technical tie up with MG Rover UK for technical knowhow of vehicle engines. Equipped with technical research and development centre covering size of 2000 sqm of area. The R&D centre is equipped with advanced design and testing facility which is recognised by Govt. of India. For more details log on to http://www.icml.co.in

Sonalika Agro Industries Corporation

Sonalika Agro was established in 1969 to support the Indian farmers with mechanization technology to facilitate persistence of green revolution. Sonalika Agro Industries Corporation, the group's maiden venture is one of the foremost Farm equipments and implements manufacturing companies in India with 80% Market Share in threshers.

Sonalika Agro is a pioneer in manufacturing advanced agricultural implements suiting the needs of global farmers.

Global presence
International Market
The credit of Sonalika's success goes to its sheer dedication that enabled it to traverse beyond national boundaries and carve a niche for itself. Today Sonalika Group is known for its world class quality products not only in India but across the globe. Today, Sonalika products are making their presence felt in more than 62 countries. The global recognition of Sonalika's growth has been highlighted by strategic investment into the group by leading International Brands like Yanmar of Japan. Not just this, the group also has its own Research & Development wing with world-class facilities adhering to the highest quality standards.

Sonalika tractors have presence in the following countries :

Algeria Angola Argentina Armenia Australia Bangladesh Benin Brazil Burkina Faso Burundi Cameroon Canada Chile Croatia

DR Congo Dubai Ecuador Egypt Ethiopia Gambia Ghana Guatemala Iran Iraq Ivory Coast Jordan Kenya Kuwait

Lesotho Libya Madagascar Malawi Malaysia Mali Mauritius Morocco Mozambique Namibia Nepal Niger Nigeria Peru

Qatar Russia Saudi Arabia Senegal Serbia Seychelles Sierra Leona Slovenia South-Africa Sri Lanka Sudan Suriname Swaziland Syria

Tanzania Togo Tunisia Turkey Uganda USA Yemen Zambia Zimbabwe

SONALIKA Corporate Social Responsibility

Sonalika | Corporate Social Responsibilities

Aanand Ashram
The endeavours of Sonalika are not limited to any industrial brackets but being a social identity it is also concerned for the welfare of the society it operates in. Sonalika understands its social responsibilities very well and is indeed committed towards the upliftment of underprivileged children. 'Sonalika Charitable Trust' the social wing of Sonalika has taken up a unique initiative "Aanand Ashram". The initiative focuses intensely on a strategy known as LIFE (Living in Family Environment) to provide permanent residential care to orphaned and abandoned children. LIFE emphasizes mainly on promotion of family bonding amongst deprived children, their mental and physical health and enhancing social integration to enable them experience 'Joy of Living'. Sonalika

puts in its best efforts to make these children live happy and become a part of society. We also welcome the volunteers who understand their social responsibilities and can make a significant difference to the lives of these children.

How you can spread smiles with us?

Educating the children in the best possible manner to make them self-sustaining Inculcating human values in children Volunteering and donating time to coach them in academics, hobbies and other activities Tell your friends to spread the awareness and seek more people to help

Project Clean & Green

Sonalika Group not only produces world class tractors and farm equipments, it is also committed to promote best environment protection practices as part of Corporate Social Responsibility (CSR). In 2004, the Group took lead in inviting leading industrialists of Hoshiarpur and formed the Clean & Green Association (CGA). Throughout the year, CGA organises cleanliness and plantation drives in different parts of Hoshiarpur city "The main purpose of organising these drives is to create awareness among residents about the benefits of clean and green environ," says Mr. A.S. Mittal, Vice Chairman of the Sonalika Group.

PUBLIC PARKS UPGRADED

The Clean & Green Association (CGA) of Hoshiarpur, a movement led by Sonalika Group to promote greenery and cleanliness in the city, recently upgraded two more city parks Budh Ram Colony Park, and New Model Colony Park by undertaking a plantation drive, and building boundary wall and benches for people to relax in green environment. The important aspect of the CGAs plantation drives is that about 99 per cent plants survive, which is a kind of record for any plantation drive.

In another initiative by the CGA, residents of nearby villages are being given employment in Sonalika and some other industries in Hoshiarpur. Those young villagers who do not have any formal education are being provided education and training to make them employable.

SONALIKA MEDIA
SONALIKA TRACTOR TO INVEST 100 CRORE TO EXPAND MANUFACTURING CAPACITY

NEW DELHI, January 05, 2010: With a view to meet huge demands of international quality tractors International Tractors Limited (ITL), Indias 3rd largest tractors and agriculture equipment manufacturers, has decided to invest 100 Crore to Maximize its production capacity. The company has plans to increase its production capacity to 10,000 tractors per year from 60,000 at Present.

Briefing onto the plan Mr. A.S. Mittal, Vice Chairman, ITL says, "We are going to establish a new manufacturing facility in Bihar with an annual production capacity of 20,000 units. We will invest Rs. 100 Crore to increase our production strength. Also we are looking forward to increase the production capacity of our Hoshiarpur plant by 20,000 units."

SONALIKA WORLDTRAC 90 HP OVERPOWER IN PITEX 2010

Sonalika Worldtrac 90 HP the Most Powerful 90 HP Tractors in India has overpowered in the 5 days Punjab International Tread Expo in Amritsar. The ultimate capacity and very attractive look of Sonalika Worldtrac 90 Rx, 2wd and Sonalika Worldtrac 90 Rx, 4wd, catch the attention of all visitors there for it invited huge foot fall at the sonalika stall in this trade expo The company is expecting substantial chunk of the market in this segment in the coming period soon. Deputy Chief Minister Sukhbir Singh Badal also take a ride of this Power house which show the significance of the launch of this tractor in India.

NEW PLANTS IN BIHAR

The Chief Minister of Bihar, Mr Nitish Kumar, commissioned two new Sonalika plants at Fatuha in Patna district on July 15. While one is a tractor manufacturing plant, the other is a farm implement and equipment manufacturing plant by the name of Sonalika Agro Ltd. These plants will play a major role in spreading green revolution to Eastern Uttar Pradesh, Bihar, Jharkhand, West Bengal, Orissa, and the North Eastern states.

SONALIKA FACILITIES
Research and Development
Being Situated in the Punjab (The leading Agriculture state in India), Sonalika have deep knowledge

of the farming requirement and also done an extensive research on the requirement and the actual need of the farmers, which resulted in development of the most suitable tractors and equipments for the Agriculture and commercial applications.

Recognition
International Tractors Ltd. has its own in house R & D setup which is recognized by Govt. of India, Ministry of Science and Technology Department of Scientific and Industrial Research.

Ultra-modern R&D facilities capable of Designing, Developing and Testing of components equipped with the following designing & Analyzing Facilities

Design Facilities

Ideas Nx & CATIA Software Product Design Package + Surfacing Set Power Mill 3-Axis CAM software Ideas to UG Software Metaphase Auto CAD Kiss software for gear & shaft geometrical analysis CAE Software for Analysis of Design. Team Center module being used in management techniques

TRAINING CENTRE
Sonalika Product Training Centre is dedicated to provide World class training to thousands of Dealers, Dealers' staff, Company staff and visiting farmers since beginning. Dealers and company personnel go through a rigorous training program on induction that is also supplemented by refresher courses and Special courses for

new products & product improvements. All courses are normally conducted at the Training centre with frequent field courses conducted as per the need in the different regions of India and Abroad. Sonalika Product Training Centre plays a key role in educating students during industrial visits, foreign visitors and farmers on farm mechanization and economical use of the tractors to increase the Agriculture production.

Sonalika Group possesses two state of art assembly lines in India and two abroad. In India assembly lines are situated at Punjab and Himachal Pradesh. International Tractors Ltd. has tractor assembly line equipped with capacity of 80,000 tractors and engines per year. The plant has in house facilities for producing transmission hydraulic components and engines. To further enhance the quality of Tractors, Gears, Shafts and other important components are manufacturers in house and are tested on high end testing facilities.

Highlights of Assembly Facilitations

Automated conveyors

Toe-in conveyors

Slat conveyor

Overhead conveyors

Quality Control
"To us at Sonalika Group, Quality is not something that we engineer, inspect and input into our tractors. It is an innate desire to attain the best that comes from within each of us. It defines our lives at work and at home and ripples out into the world around us".

Quality Policy

Producing world class Products in Quality and Reliability. Total customer satisfaction. Creating a culture among all Employees towards Total Quality Control Concept. Constant upgradation of Technology and Human Excellence.

International Tractors Limited is an ISO 9001: 2008 for Tractor Assembly and TS16949 for In-house Gears and Shafts manufacturing. Sonalika Group firmly believes in matching the international Quality Standards to meet the Customer Satisfaction. To achieve this, Sonalika Group is always working on continuous focus on Quality for both its in house manufacturing as well as chain of suppliers, and thrives to achieve excellence in Product Quality. The plant has in house latest technology to manufacture and ensure quality standards in HMS (Heavy Machine Shop), LMS (Light Machine Shop), Gear Shop and Press & Fabrication Shop. This includes chain of CNC Machines, VMCs, HMCs, PLC controlled Presses, Seal Quench furnaces, Gear Testers, 3D Cm and 2D Cms. Production staff and workers are technically qualified and regular trainings are imparted as per their job profiles besides focus on Zone wise 5S concept across the organization.

ORGANISATION CHART FOLLOWED BY ITL:-

Chairman

Vice-Chairman

Managing Director

Chief Operating Officer

Joint Chief Operating Officer

HOD of Every Dept.

Managerial Staff

Executives

Support Staff

Workers

PEST analysis:

There are many factors in the environment that will affect any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro

change. To help in analyze these factors we can categorize them using the PESTEL model. This classification distinguishes between political, economical, social, technological, ecological and legal factor. By PEST analysis we can know about extended environment and key drivers of change of an organization.

Political factors:
These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide, to what extent does it believe in subsidizing firms, what are its priorities in terms of business support and political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. The political factors related to tractor industry are: Government laid stress on the mechanization of agriculture with a view to boost food grain production. Therefore agriculture sector started receiving financial assistance. Subsidy on agricultural loans from government Change in taxation policy 100% FDI policy Regaining Agricultural dynamism, a key goal of eleventh Five year plan

Economical Factors:
These include interest rates, taxation changes, economic growth, inflation and exchange rates. Economic change can have a major impact on a firm's behaviour. The economics factors related to tractor industry are:

 95% of tractor sales are on credit. Credit is extended by commercial banks, state land development banks and regional rural banks. 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. Deteriorating foreign exchange situation in western country, poor buying capacity and comparatively cheaper import of second hand tractor from developed country reduces the export of tractor from India in recent days. Less interest rate charged by banks for agricultural inputs Inflation may provoke higher wage demands from employees and raise costs Higher national income growth may boost demand for a firm's products

Social factor:
Changes in social trends like population increase can impact on the demand for a firm's products and the industry as a whole. The social factors related to tractor industry are: Due to land fragmentation farmers with small land holding are buying tractors. 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. 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 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. More farmers are opting for multiple cropping over last decade. Country's gross cropped area increased by about 4.7%. This indicates the increased popularity of multiple cropping.

Technological factor:

New technologies create new products and new processes. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Sometimes the technology reduces the life cycle of products. The technological factors related to tractor industry are: Accelerated acquisition of technology capabilities to raises productivity in agriculture. Continuous technological innovation. Renewable energy development. Ex, coal gas renewable

INTRODUCTION TO TOPIC

CONSUMER BEHAVIOUR /PREFERENCES

Before getting into the details of Consumer Behaviour we need to understand some basic terminologies. In general terms both Consumer and Customer are considered the same but they are quite different.

Customer:
The term is used to refer to someone who regularly purchases from a particular store or Company. Mahatma Gandhi has made a visionary and deep meaningful statement at Johannesburg, South Africa in 1890, A customer is the most important visitors on our premises. He is not dependent on us. We are dependent on him. He is not an interruption on our work. He is the purpose of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to do so. Traditionally the word Customer was used to define people whom the organization dealt with externally. Though the word Customer is used as a single unit purchases could be made both by the individual and the group.

Consumer:
The traditional view p point has been to define consumer strictly in terms of economic goods and services. This position holds the consumers are potential purchasers of product and services offered for sale. The view has been broadened overtime so that at least some scholars now do not consider a monetary exchange to the definition of consumers. This change implies that potential adopters of free services or even philosophies or ideas can also be encompassed by the definition.

So ultimately Consumers are those individuals who purchase for the purpose of individual or household consumption. OR

The individual who consumes or uses a product, which may or may not be purchased by him is known as consumer. So, after getting into these terms we need to get into the details of Consumer Behaviour. Consumer Behaviour can be said to be the study of how individuals make decision on how to spend their available resources (time, money, efforts) on various consumption related items. OR Consumer Behaviour may be defined as the decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods or services. The Consumer Behaviour research goes far beyond the facts of consumer preferences and encompasses all of the behaviours that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect would satisfy their need. The detailed study of Consumer Behaviour or Consumer Preferences focuses ono Who Buys products or services? o How do they buy products or services? o Where do they buy them? o How often do they buy them? o When do they buy them? o Why do they buy them? o How often do they use them?

These questions will help in understanding the factors that influence the decision making process of the consumers. It generally assumed that consumer decision making is based on limited information that the consumer has.

CONSUMER DECISION MAKING

It refers to the set of activities that would lead an individual to perform some specified tasks. In case of consumer preferences it would refer to the set of factors that make an individual prefer one product over another. The preference for the products mainly lies in the answer of the following important questions How well the product suits the consumer? Till what extent it satisfies the needs of the consumers and what are the shortcomings? Does the product suit the budget/purchasing power of the consumer? How readily and easily the product is available in the market?

POST PURCHASE BEHAVIOUR: The output portion of the Consumer Behaviour model states that the consumer evaluates the various brands of the products he is interested in buying and then chooses a specified brand. The purchase can be Repeated Purchase i.e. buying the same product again. Trail i.e. going for the new product just because the earlier similar product was not satisfying or because the consumer likes to try new product.

CONSUMER DECISION MAKING PROCESS

PROBLEM RECOGONITION

INFORMATION RESEARCH

EVSLUATION OF ALTERNATIVES

POST PURCHASE DECISION

PURCHASE DECISION

Understanding consumer behaviour and knowing customers is never simple. Customers may say one thing but do not say another. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last minute. According to ALBERTO CULVER PHILOSOPHY Business organizations do not only sell. They also buy vast quantities of raw materials, manufactured components, plant & equipment, supplies & business services. Seller needs to understand these organizations needs, resources, policies & buying procedures. There are several research designs5 and researcher must decide in advance of collection and analysis of data as to which design would prove to be more appropriate for his research project. He must give due weight to various points such as the type of universe and its nature, objectives of his study, the resource list or the sampling frame, desired standard of accuracy and the like when taking a decision in respect of design for his research project. The research has tried to cover almost every area of the research topic and has gained an insight of the Consumer behaviour towards Sonalika tractors and its competition with others.